Federal Reserve Chair Jerome Powell on Tuesday pushed back on pressure to use the central bank’s powers to fight climate change, arguing that it’s up to the president and Congress to take the lead.
“Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public’s will as expressed through elections,” Powell said during a panel in Sweden on how and why central banks are shielded from political interference.
“Grants of independence to agencies should be exceedingly rare, explicit, tightly circumscribed, and limited to those issues that clearly warrant protection from short-term political considerations,” he said.
[At some level, this should be taken for granted … if you have a basic education in American civics, anyway. But with the rise of DEI investing and other activism from Wall Street and others, it’s good to see Powell declare that the Fed will stick to its own jurisdiction. (Whatever that is…) — Ed]
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