Does the US need a central bank (the FED)

True but it is the technique they will choose to use if they want to increase the monetary base.

 

Yes they use the interest rate to hit the interest target that is true too. But it is not what I meant. I meant they use the interest rate to hit the inflation target. Both statements are true.

 

To answer the Original Poster's question does the US need the FED. In regards to controlling the economy there is a new macroeconomic model using pension saving which seems to be better at achieving the desired economic targets.