Making the Fed more accountable could fend off Trump’s threats. Here’s how

The Federal Reserve—one of the world’s most powerful institutions—affects the U.S. economy in a way that no other part of government can. Interest rates, inflation, and bank regulation are all shaped by Fed policy and impact the everyday financial life of Americans, whether they realize it or not. Its decisions can influence everything from the cost of a mortgage to business hiring and the pace of economic growth. As a result, Fed critics on both the left and the right have long asked whether the Fed is adequately accountable. On one hand, Fed independence from political meddling has traditionally been considered key to its ability to control inflation. On the other, the Fed’s expanded activities since the 2008 financial crisis—more private-sector lending and large-scale purchases of government securities—have spurred calls for Congress to do more to ensure Fed policymakers are held accountable. Complicating matters further is President Donald Trump, who has aggressively and consistently pressured the Fed to cut interest rates. He’s also still trying to oust one Fed governor, Lisa Cook, despite losing his case to do just that before the U.S. Supreme Court. These are just some of t…