The Federal Reserve System is also independent, and acts as
the nationís central bank. The Federal Reserve Board monitors
bank interest rates and how the US dollar is circulated. Some
believe it is just as powerful as a cabinet department,
because by controlling interest rates, they have a big say on
price inflation and deflation. With such power, itís no wonder
why they are independent. Weíll look more at their actions
regarding monetary policy in the public policy chapter.