Chairman Jerome Powell has said the Federal Reserve will not be a climate regulator. It attempts to draw the line on how far the monetary authority can exercise its powers in promoting a greener economy.
The chairman spoke at a forum in Stockholm on Wednesday regarding the independence of central banks. According to the manuscript circulated in advance, “the Fed has a limited but significant responsibility over climate-related financial risks,” but added that “without clear legislation by Congress, “It is inappropriate for us to use monetary policy and supervisory tools to promote a greener economy or achieve other climate-related goals.”
“We are not, and will not be, ‘climate policymakers,'” Powell declared.
There was no direct reference to the outlook for the economy or monetary policy in the speech manuscript. “We are raising interest rates to slow the economy,” Powell said. rice field.
news-rsf-original-reference paywall">Original title:Powell Vows to Limit Fed’s Climate Role to Protect Independence(excerpt)
