Schoenholtz: Fed Is Rule-Like, but Not Slavish to Rules

The video discusses the Federal Reserve's rule-like behavior and its impact on monetary policy. It compares the views of economists like John P Taylor and Kim Schoenholtz on market rules. The discussion also covers the Fed's political independence, the role of presidential appointments, and criticisms of rule-based approaches. The Fed's mandate to keep inflation low and stable is highlighted, along with the potential risks of Congress becoming more involved in monetary policy decisions.

What is the significance of the Fed operating under a mandate as mentioned in the text?

Discuss the potential consequences of Congress monitoring the Federal Reserve's operational decisions.