6. Biden returns to political norms on Fed decisions

Illustration of a democrat donkey and republican elephant facing each other
Illustration: Eniola Odetunde/Axios

The modern Fed is designed to operate free of political pressures, as codified in a 1951 agreement with the U.S. Treasury Department. That gives monetary policy to the Fed and fiscal policy to Treasury.

Reality check: The president nominates Fed chairs and governors, who don't have lifetime appointments like Supreme Court justices, so politics has always maintained some influence.

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