Question

The Fed is the most independent of all U.S. government agencies. What is the main difference between it and the other government agencies that explains the Fed’s greater independence?

Answer 1

Answer:

The Fed is more independent because of its substantial revenue from securities and discount loans. Independence allows it to control its own budget.

Explanation:

This has always been one unique privilege the Fed (or The Federal Reserve System) has. The Federal Reserve System is the central bank of the United States, and so it regulates and controls the financial activities of the country.

Unlike other agencies that often require/depend on the nation's official budget before they can fully function, the Fed has the ability not only to control its own budget but to create money for nationwide circulation to other agencies.