Are Federal Reserve Chairmen Too Powerful? Economic research has shown that the chairman of the Federal Reserve is more powerful, relative to other committee members, than the head of the central bank...

Are Federal Reserve Chairmen Too Powerful? Economic research has shown that the chairman of the Federal Reserve is more powerful, relative to other committee members, than the head of the central bank in other countries. Fed chairpersons have much more influence over actual decisions than other members. Recall Professor Blinder’s findings that committees make better decisions than individuals and that leaders of groups, per se, do not matter for the quality of decision making. Make an argument that the tradition of a strong chairman in the United States reduces the effectiveness of monetary policy. (Related to Application 3 on page 329.)