The United States congress and the president together have the power to enact federal law. Federal bureaucratic agencies have the responsibility to execute federal law. However, in the carrying out of these laws, federal agencies have policy making discretion.
Congress gives federal agencies policy making discretion in executing federal laws because the agencies often have more knowledge and can therefore make laws that won't cause much grief to the government. Another reason is that Congress believes if the federal agencies make a law that isn't accepted well, they won't get the blame and grief for it.
The Federal Reserve board is an agency that exercises policy-making discretion. It uses discretion through monetary policy, where expertise is higher than Congress. In other words, they have more knowledge to help make more informed decisions regarding monetary concerns.
Congress ensures that federal agencies follow legislative intent through oversight and the Government Accountability Office (GAO).
2006-3
The United States congress and the president together have the power to
enact federal law. Federal bureaucratic agencies have the
responsibility to execute federal law. However, in the carrying out of
these laws, federal agencies have policy making discretion.
http://apcentral.collegeboard.com/apc/public/repository/_ap06_gopo_us_sg.pdf
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