What is the difference? The reason why it is alarming is because there is no political separation. It doesn't really matter which way it goes.
This happened in the 70s. Nixon politicized the role with Burns (who came from the CEA), then Carter appointed Miller (who went onto become Treasury Secretary). And btw, Miller was (with hindsight) one of the worst Fed chairs of all-time.
Tbf, Volcker came from Treasury, Geithner went into Treasury (after FRBNY) but, in both cases, they operated with Presidents who respected the distinction in functions. This distinction weakened significantly under Trump, and is now non-existent.
This happened in the 70s. Nixon politicized the role with Burns (who came from the CEA), then Carter appointed Miller (who went onto become Treasury Secretary). And btw, Miller was (with hindsight) one of the worst Fed chairs of all-time.
Tbf, Volcker came from Treasury, Geithner went into Treasury (after FRBNY) but, in both cases, they operated with Presidents who respected the distinction in functions. This distinction weakened significantly under Trump, and is now non-existent.