"Your comment today that the U.S. Federal Reserve is an independent branch of the U.S. government is not accurate. The U.S. Federal Reserve is a private banking institution. It is not owned by the U.S. government nor a part of the U.S. government. This fact can be read on the Federal Reserve's web site. This is a very common misperception."

David Fuller's view I believe you are technically correct but might this be a moot point? I reproduce this section from ThisNation.com - American Government & Politics Online:

The Federal Reserve is considered an independent central bank. It is independent since its decisions do not have to be ratified by the President or Congress. The Federal Reserve System was created by Congress in 1913 "to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

While the Federal Reserve is an independent institution, it is still accountable to Congress. The Constitution gives Congress the power to coin money and set its value. Congress delegated this power to the Federal Reserve in the 1913 Federal Reserve Act, but still maintains oversight authority. Under the Humphrey-Hawkins Act of 1978, the Federal Reserve must submit a report on the economy to Congress by February 20 and July 20 of each year. Alan Greenspan, the current Chairman of the Federal Reserve Board of Governors, is called to testify on the report before Senate and House Committees.

As an interesting aside, note the words: "…to furnish an elastic currency".