Final answer:
The Federal Reserve is a semi-decentralized institution that combines government appointees with private-sector representation. This structure helps insulate policy decisions from political pressure and ensures they are based on economic merits.
Step-by-step explanation:
The Federal Reserve is semi-decentralized, mixing government appointees with representation from private-sector banks. At the national level, it is run by a Board of Governors, consisting of seven members appointed by the President of the United States and confirmed by the Senate. The purpose of this structure is to insulate the Board of Governors from political pressure, allowing policy decisions to be made based on economic merits.