Question

Which is more independent, the Federal Reserve or the European Central Bank? Why?

Short answer

ECB is greatly more independent and arguably slightly responsible than the Federal Reserve.

Step-by-step solution

Assumption

The political independence of the ECB is instrumental to its primary objective of maintaining price stability. It is a cornerstone of the euro area’s monetary system. Extensive empirical evidence and theoretical analyses have shown that independent central banks are better capable of maintaining low inflation rates.