What does it mean for a central bank to operate as an independent entity?

1. An independent central bank derives its authority from the legislature that created it. 2. Its decisions do not have to be approved by the head of government, the legislature or any other branch. 3. Independence therefore means freedom over policy decisions, not freedom from all oversight. 4. The legislature still periodically reviews its activities and it must work within the economic framework the government sets. 5. Answering to nobody at all is the trap, because periodic review of its activities continues. 6. Ownership by the banks it supervises would be the opposite of independence, since the supervised would control the supervisor. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.2 The Federal Reserve System_