This Manhattan Institute report critiques the Federal Reserve's current governance, arguing it has led to monetary policy errors and an overreach into political domains. The authors contend that while central bank independence is important, the Fed's structure fosters groupthink and lacks sufficient accountability. To address these issues, the report proposes reforms including restructuring terms for Fed officials, altering the FOMC composition to empower Reserve Banks, nationalizing Reserve Banks with state governor appointments to their boards, and separating non-monetary policy functions. Ultimately, the goal is to enhance the Fed's insulation from short-term politics while increasing its democratic legitimacy and improving monetary outcomes through a system of checks and balances.