Professors vs. Judges

[August1991]

Why is Janet Yellen now the US Central Banker? What's her term?

Why does the US have a Supreme Court of 9 members? But the US Fed has no constitutional basis?

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The US Supreme Court is part of the US Constitution. Understandably, the 18th century "framers" (American usage) understood the purpose of a judicial counterweight. In the 18th century, they had no idea of macroeconomics.

I believe that the US Federal Reserve should be raised to a level similar to the US Supreme Court: The American State should have four corners: Executive, Parliament, Judicial, Monetary.

Given our knowledge of economics since the 18th century, surely the US constitution requires an amendement. The US Constitution should include explicit independence of the US Federal Reserve.

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Lawyers gain reputation with time, with the wisdom of their decisions. Nowadays, economics professors make their name early.

For lawyers, this is not a basis to name a Supreme Court justice. What of the way economists select Federal Reserve members?

Edited December 2, 2013 by August1991

[bush_cheney2004]

Fed Chairwoman Yellen's (first) term will be four years. The US Congress created the Federal Reserve Act and confirms nominated reserve bank governors, vice chair, and chair. Yellen has the requisite experience in such matters. So it needs no Constitutional basis, just like the IRS, FBI, or NSA director. And unlike Supreme Court justices, Congress is elected by popular vote (confirming justice nominations).

There have been several previous reserve banking systems in U.S. history, which would not have been so easily terminated if founded in the constitution.