Final answer:
Federal judges in the United States are appointed for lifetime terms as opposed to fixed terms set by Congress, as indicated by Article III, ensuring their independence from political pressures.
Step-by-step explanation:
The statement that 'All federal judges serve a fixed term of office, set by Congress' is incorrect. Instead, Article III of the United States Constitution provides that federal judges shall hold their offices during good Behavior, which effectively means they can serve for lifetime terms unless they are impeached.
This provision ensures an independent judiciary, free from undue political influence or pressure. Federal judges, which include judges on the District Courts, Circuit Courts of Appeal, and the Supreme Court, are appointed by the President and confirmed by the Senate. Judges are protected against reductions in their salary to ensure independence from manipulation through financial means.