To whom is the Federal Reserve accountable?

The Federal Reserve, as the central bank of the United States, operates with a degree of independence to carry out its monetary policy functions effectively, but it is ultimately accountable to Congress. This accountability is established through various means, including regular reporting on monetary policy and economic conditions, as well as the requirement for the Federal Reserve to testify before Congress. The independence of the Federal Reserve allows it to make decisions based on economic data and analysis rather than political pressure, but its actions and decisions are subject to oversight by Congress. This relationship ensures that while the Federal Reserve can operate independently, it must still justify its policies and decision-making processes to the legislative body that has authority over federal government spending and economic policy. The other options do not accurately reflect this accountability structure.