PREFACE ix INTRODUCTION: ULYSSES AND THE CHAPERONE 1 PART I. The Federal Reserve Is a "They," Not an "It" 13 CHAPTER 1 The Three Foundings of the Federal Reserve 15 CHAPTER 2 Leadership and Institutional Change: From Periphery to Power 40 CHAPTER 3 Central Banking by Committee: The Authority of the Fed's Board of Governors 69 CHAPTER 4 The "Double Government" of the Federal Reserve: The Economists and the Lawyers 84 CHAPTER 5 The Vestigial and Unconstitutional Federal Reserve Banks 103 PART II. The Five Hundred Hats of the Federal Reserve 127 CHAPTER 6 Practicing Monetary Policy: The Rise and Fall of the Chaperone 129 CHAPTER 7 The Once and Future Federal Reserve: The Fed's Banking Functions 149 PART III. The Sirens of the Federal Reserve 177 CHAPTER 8 The President and the Federal Reserve: The Limits of Law and the Power of Relationships 179 CHAPTER 9 Congress and the Fed: The Curious Case of the Fed's Budgetary Autonomy 199 CHAPTER 10 Club Fed: The Communities of the Federal Reserve 218 PART IV. The Democratic Demands of Fed Governance: Reforming the Fed by Choosing the Chaperone 237 CHAPTER 11 Proposals 239 CONCLUSION: THE FREEMASONS AND THE FEDERAL RESERVE 267 ACKNOWLEDGMENTS 271 NOTES 277 BIBLIOGRAPHY 313 INDEX 341

One of Financial Times (FT.com) Best Books of 2016 "Conti-Brown has accomplished two near impossibilities: He has opened up new areas of inquiry on an overworn topic, and he has made them intellectually rigorous as well as riveting to read about."--Wall Street Journal "With plenty in the media recently about Federal Reserve Chairwoman Janet Yellen and attempts to raise interest rates, [The Power and Independence of the Federal Reserve] could not have come at a more opportune time. Readers concerned with monetary policy and the role of the Federal Reserve will discover that this specialized title has much to offer."--Library Journal "[A] stimulating book... Conti-Brown gives us much food for thought about how central banks go about their work."--David Green, Financial World "Conti-Brown's clear analysis and elegant language make the book a fascinating read."--Biz Ed Magazine "Conti-Brown makes a compelling case for change."--Michael Reddell, Central Banking Journal "[Conti-Brown] explains clearly how complex relationships shape the Fed's independence in a meticulous study of its political, economic and constitutional history."--Financial Times "He explains clearly how complex relationships shape the Fed's independence in a meticulous study of its political, economic and constitutional history."--Philip Augar, Financial Times "Peter's book should spur lawyers and academics to think critically about the FOMC's constitutional status. And whether or not we agree with Peter's conclusion, his book will serve to define the terms of the debate."--Daniel Hemel, Yale Journal of Regulation blog "While the topic is complex, layered, and labyrinthine, Conti-Brown's clear analysis and elegant language make the book a fascinating read."--Biz Ed Magazine "This book is an interesting, even scary, account of the governance of the Federal Reserve, with examples of the influence of personalities in ways not anticipated by law."--John H. Wood, EH.Net "A page-turner... This book is that rarest of beasts: serious financial analysis in a wonderfully well written story."--Financial Post "[Conti-Brown] has not only a historian's eye for important facts and details but also a lawyer's perspective on administrative law and power relationships. This is one of those books many readers will find illuminating."--Choice "Beginning with its founding, [Conti-Brown] carefully walks readres through the changes to the practice and structure of the Federal Reserve system. In doing so, he has not only a historian's eye for important facts and details but also a lawyer's perspective on administrative law and power relationships. This is one of those books many readers will find illuminating even while disagreeing vehemently with one or two items."--Choice "Excellent... I highly recommend this book for readers interested in the Federal Reserve System."--Scott Sumner, Econlog "Peter Conti-Brown's The Power and Independence of the Federal Reserve (Princeton) is a study of what might be called the Fed's unwritten constitution... For today's Fed leaders, it is a sobering lesson."--Sebastian Mallaby, Financial Times

"Critiques of central banking have for too long been the preserve of economists and insiders, while legal scholars and political scientists concentrated on the regulatory state. Scholarly and stimulating, The Power and Independence of the Federal Reserve breaks this mold and deserves to attract wide interest and discussion."—Paul Tucker, former deputy governor, Bank of England and senior fellow, Harvard Kennedy School and Harvard Business School"This excellent book focuses on the operations and governance of the Federal Reserve. With an entertaining style and sound justification, Conti-Brown concludes that there are too many diverse functions and policymakers within the Fed, and he offers sensible policy alternatives. His book is essential reading for anyone concerned about monetary policy and the role of the Fed, and central banking more widely."—Charles Goodhart, emeritus professor, London School of Economics"Is it possible to write a fascinating, original, and even literary book on the power and independence of the Federal Reserve? Yes, because Peter Conti-Brown has done it. His unique blend of historical narrative, legal analysis, and economic knowledge distinguishes this remarkable book from anything ever written about the Fed. Readers may not agree with all of Conti-Brown's conclusions, some of which are highly controversial. But everyone will learn something new."—Alan S. Blinder, author of After the Music Stopped"Is it possible to write a fascinating, original, and even literary book on the power and independence of the Federal Reserve? Yes, because Peter Conti-Brown has done it."—Alan S. Blinder, author ofAfter the Music Stopped"Debates about the Federal Reserve often pit advocates of Fed independence against those who believe the Fed should be regularly audited or even abolished. In this highly readable work, Peter Conti-Brown shows both views are mistaken. Along the way, he uncovers forgotten heroes of Fed history, offers the clearest explanation yet of the Fed's maneuvers during and after the 2008 crisis, and demonstrates that the Fed's regional banks are almost certainly unconstitutional. This is an important book."—David Skeel, University of Pennsylvania"Although more people than ever have become aware of the Fed in recent years, very few actually know what it does and how it actually works. This book explains the history and laws that have shaped the Fed, and provides a deep and coherent discussion of the notion of Fed independence. It makes a significant contribution to our understanding of the Federal Reserve and central banks."—Anat Admati, coauthor of The Bankers' New Clothes"We know that the Federal Reserve is important, but we seldom think about the legal and political details of its daily monetary policy decisions. In this fascinating book, Conti-Brown brings a fresh and challenging perspective to almost every aspect of Fed history and its current operations."—Simon Johnson, author of 13 Bankers