Answer: Why does the Federal Reserve System have a high degree of political independence?
Because its price is determined discretionally by the monetary authority of the Federal Reserve.
Step-by-step explanation:
The Federal Reserve System is the Central Bank of the United States of America. Created in 1913 through the Federal Reserve Act, the Federal Reserve is a conglomerate of US private banks charged with accumulating and disposing of all monetary funds of the United States financial system. The Federal Reserve is the institution responsible for issuing money, following the fiduciary pattern, as the European Central Bank does in the European Economic Community. The Federal Reserve is the entity in charge of setting interest rates, that is, the price established for issuing money. After the abandonment of the gold standard, the Federal Reserve prints money through the fiduciary pattern, which means that such issuance is not backed by gold, but that its price is determined discretionally by the monetary authority of the Federal Reserve.