NYT: Fed Is Not Politically Independent!

OK, they didn’t say so in so many words. But in an article about Donald Kohn, the vice-Chairman of the Federal Reserve retiring, they reported (emphasis mine):

His departure would bring to three the number of vacancies on the Federal Reserve’s seven-member board of governors, and gives the Obama administration the chance to significantly affect the governance of the Fed and its conduct of monetary policy. Mr. Kohn’s announcement also comes as the Senate is considering a vast overhaul of financial regulations that might include a reduction in the Fed’s powers to oversee banks.

To Fed defenders:  So, does the Obama administration’s ability to “significantly affect” the Fed and its “conduct of monetary policy” count as political independence?

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