One of the ways the Federal Reserve carries out its responsibilities for conducting monetary policy is by trying to affect the level of key interest rates. In early​ 2016, Federal Reserve Chair Janet Yellen met with President Barack Obama in the White House. According to an article in the Wall Street Journal​, a spokesman for the president stated that open double quotehe ​'would not​ anticipate' that Ms. Yellen would go into detail on the path of interest rates at the meeting . . .close double quote ​Source: David​ Harrison, open double quoteBarack ​Obama, Janet Yellen Discuss​ Economy, Regulation at White ​House,close double quote Wall Street Journal​, April​ 11, 2016. Which best describes why the president and Ms. Yellen did not discuss interest​ rates?A.They did not have enough time.
B.The president does not set interest rates.
C.It is important for the Fed to maintain its independence.
D.The Federal Reserve is not a government organization.

Respuesta :

Answer: Option C - It is important for the Fed to maintain it's independence.

Explanation:

We will note that Obama met with Janet Yellen in march/april 2016 when he was still president and they discussed about different things like: the near and long-term growth outlook, the state of the labor market, inequality, and potential risks to the economy, both in the United States and globally.

However, they didn't discuss anything on monetary policy and interest rates. This was not because they didn't have enough time because they talked about so many things like i stated above.

It was also not because the president doesn't set interest rates as we all know it's the duty of the federal reserves to do that and also Yellen wasn't meeting obama for him to set interest rates. Also, it couldn't be because the federal reserve isn't a government organization because it is one.

So the only correct option would be that he didn't want to interfere or put pressure on Yellen and the federal reserves because they are meant to be independent.