Low rates can also inflate financial markets. Investors, unable to generate strong returns in safe assets, such as short-term Treasury notes, will move into progressively higher-risk assets, where returns are higher, but so is the danger of steep losses.

AP reporter Chris Rugaber explains the role of the Federal Reserve and why an independent Fed is important. (AP video: River Zhang)

Former president of the Federal Reserve Bank of Cleveland Loretta Mester says it's important that the Fed stays independent and that fiscal politics should not interfere with monetary policy makers and their decisions.

The Fed is an outsourced creation of Congress whose officials are appointed by presidents and confirmed by Congress. Of course it’s political. It can only be political.

Fed Reserve Chair Jerome Powell responded to the Trump administration's inquiry about its $2.5 billion headquarters renovation, addressing concerns about cost overruns and project details.

As a result, the long standing abhorrence to a central bank, advocated as early as Thomas Jefferson’s administration and by much of rural America was overcome. At the request of President Woodrow Wilson,

President Donald Trump wants the Federal Reserve to slash interest rates by three percentage points, a massive cut that could push borrowing costs back to pandemic lows. With two seats at the Fed likely opening up soon,