Speaking at the Riksbank International Symposium on Central Bank Independence, the Chairman of the Federal Open Market Committee (FOMC), Jerome Powell, has asserted that the independence of the Federal Reserve from political influences is critical to its ability to fight inflation.as reported by Reuters. Powell further noted that this independence requires the Fed to stay out of issues like climate change, which go beyond its mandate set by Congress..
“We are not, nor will we be, responsible for climate policy“, Powell has reiterated.
Additional comments
“The Fed should Resist the temptation to expand your scope to address other important social issues.
“Taking on such goals would undermine our independence.”
“The Fed has limited liability for weather-related financial risks“.
“Without laws of Congress, it is inappropriate for us to use our monetary or supervisory tools to promote a greener economy.”
“It is also inappropriate for us to use our tools to achieve other climate-based goals.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
