Groupthink distracts the institution from its proper role of focusing on monetary concerns and representing the American economy.
America’s Federal Reserve system has always been an awkward hybrid of public and private. It is divided between a central Federal Reserve board (appointed by the U.S. president) and twelve Federal Reserve Banks, which are each overseen by their own boards of directors who are legally required to represent different sectors of the private economy and act in a nonpartisan fashion.
A recent Manhattan Institute report shows that the Federal Reserve directors have undergone a rapid ideological shift in the past decade and no longer appropriately represent the private economy. They have become more left-wing and are more likely to come from labor unions and nonprofits rather than traditional business sectors. As part of that shift, the regional banks have supported more left-wing causes and become less attuned to the nation’s economy.
Continue reading the entire piece here at the National Review Online (paywall)
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Judge Glock is the director of research and a senior fellow at the Manhattan Institute and a contributing editor at City Journal. Based off a recent report.
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