News

US Fed should avoid climate change 'mission creep': Powell

By AFP

April 3, 2024 10:52 PM


The Federal Reserve should avoid tackling politically charged issues like climate change without Congressional approval if it is to maintain public trust in the institution, the head of the US central bank said Wednesday.

"Fed policymakers are often pressed to take a position on issues that are arguably relevant to the economy but are not within our mandate," Fed chair Jerome Powell told a conference in California in prepared remarks.

This includes issues like tax and spending policies, immigration policy, and climate change, he said.

The Fed operates independently of Congress, which has granted it limited powers to set US monetary policy and banking regulation.

This allows policymakers to focus on keeping both inflation and unemployment low, leaving elected officials to chart America's fiscal policy, and to tackle the more politically-sensitive topics like trade and climate change.

The Fed should avoid "mission creep" to "maintain the public's trust" in the institution, Powell said.

"Policies to address climate change are the business of elected officials and those agencies that they have charged with this responsibility," he said, adding: "The Fed has received no such charge."

"We are not, nor do we seek to be, climate policymakers," he said.

Powell's remarks Wednesday underscore his push to keep the US central bank as far away as possible from US politics at a time when the country is deeply divided on a host of issues, from climate change to immigration.

With the US presidential elections looming later this year, the Fed risks being caught in the middle as it continues its long-running fight to return elevated inflation to its long-run target of two percent.

Earlier Wednesday, Bloomberg News reported that US regulators, led by the Federal Reserve, had stepped in to thwart a European push to make climate risk a bigger focus of global financial rules.


AFP


Most Read

  1. Farmers can apply for Bardana through App from Saturday as Punjab starts wheat procurement campaign Farmers can apply for Bardana through App from Saturday as Punjab starts wheat procurement campaign
  2. 16 die, 30 wounded as truck carrying 100 pilgrims fall into ditch near Hub 16 die, 30 wounded as truck carrying 100 pilgrims fall into ditch near Hub
  3. Ayeza Khan has ideal stylist squad! Ayeza Khan has ideal stylist squad!
  4. French athlete breaks world record after climbing Eiffel Tower French athlete breaks world record after climbing Eiffel Tower
  5. Punjab students asked to get registered for getting petrol, e-bikes Punjab students asked to get registered for getting petrol, e-bikes
  6. Star woman cricketer Aliya Riaz ties the knot with Ali Younis in intimate Nikkah Ceremony Star woman cricketer Aliya Riaz ties the knot with Ali Younis in intimate Nikkah Ceremony

Opinion

  1. Insights into the Pakistan Stock Exchange's Recent Record High Triumph
    Insights into the Pakistan Stock Exchange's Recent Record High Triumph

    By Zulfiqar Ali Mir

  2. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  3. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  4. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay

  5. Global race: China will reduce its unnecessary expenses
    Global race: China will reduce its unnecessary expenses

    By Ali Ramay

  6. Channer Pir: The Great Saint of Cholistan
    Channer Pir: The Great Saint of Cholistan

    By Dr Asif Channer