> thats obviously the executive?

The President chooses the Fed chairman. The Fed is an independent agency [1].

> this is how democracy works, if people are dumb, then things go bad. The point of democracy is that you have to take a leap of faith and hope people make good decisions

Which is why America isn't a democracy (and hasn't collapsed the way democracies historically collapse, in mob rule and hyperpartisanship), it's a republic. (It's also why we have independent agencies and an independent judiciary.)

[1] https://en.wikipedia.org/wiki/Independent_agencies_of_the_Un...