Published in the Institutional Risk Analyst.
As we noted in our October 3, 2025 interview with Alex Pollock (“Interview: Alex Pollock on the Fed and Gold | Part I”) with respect to the changes to the Fed made by Mariner Eccles during the New Deal:
“Pollock: The Fed became a centralized body dominated first by the Board of Governors, but really by the chairman. So you got two centralizations going on here in the Fed after 1935. One is a centralization of power out of the rest of the country into Washington, into the Board. And the second is the centralization of power in the office of the Chairman of the Federal Reserve Board, who is the chief executive of that agency and for whom all the staff works. All the hundreds of PhD economists and everybody else all work for the Chairman. And so you get this much increased power of the Chairman hitting a peak, I will say, in the days when Greenspan became The Maestro.”