{"id":538535,"date":"2023-01-10T19:33:31","date_gmt":"2023-01-10T16:33:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/jerome-powell-says-fed-should-avoid-climate-change-issues\/"},"modified":"2023-01-10T19:33:31","modified_gmt":"2023-01-10T16:33:31","slug":"jerome-powell-says-fed-should-avoid-climate-change-issues","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/jerome-powell-says-fed-should-avoid-climate-change-issues\/","title":{"rendered":"#Jerome Powell says Fed should avoid climate change issues"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22c50db86d6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22c50db86d6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/jerome-powell-says-fed-should-avoid-climate-change-issues\/#%E2%80%9CJerome_Powell_says_Fed_should_avoid_climate_change_issues%E2%80%9D\" >&#8220;Jerome Powell says Fed should avoid climate change issues&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/jerome-powell-says-fed-should-avoid-climate-change-issues\/#Staying_on_mission\" >Staying on mission<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CJerome_Powell_says_Fed_should_avoid_climate_change_issues%E2%80%9D\"><\/span>&#8220;Jerome Powell says Fed should avoid climate change issues&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The\u00a0Federal Reserve\u2019s independence from political influence is central to its ability to battle inflation, but requires it stay out of issues like climate change that are beyond its congressionally established mandate,\u00a0Fed\u00a0Chair Jerome Powell said Tuesday.<\/p>\n<p>\u201cRestoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy. The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors,\u201d Powell said in remarks to a forum on central bank independence sponsored by the Swedish central bank.<\/p>\n<p>But \u201cwe should \u2018stick to our knitting\u2019 and not wander off to pursue perceived <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> benefits that are not tightly linked to our statutory goals and authorities,\u201d Powell said. \u201cTaking on new goals, however worthy, without a clear statutory mandate would undermine the case for our independence.\u201d<\/p>\n<p>Though Powell said the\u00a0Fed\u2019s regulatory powers give it a \u201cnarrow\u201d role to ensure financial institutions \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriately manage\u201d the risks they face from climate change, \u201cwe are not, and will not be, a \u2018climate policymaker.&#8217;\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powell-fed-climate.jpg?w=1024\" alt=\"Federal Reserve Chair Jerome Powell speaking Tuesday.\" class=\"wp-image-25305631\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powell-fed-climate.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powell-fed-climate.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powell-fed-climate.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>\u201cTaking on new goals, however worthy, without a clear statutory mandate would undermine the case for our independence,\u201d Fed Chair Jerome Powell said Tuesday.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>\u201cWithout explicit congressional legislation, it would be inappropriate for us to use our monetary policy or supervisory tools to promote a greener economy or to achieve other climate-based goals,\u201d he said. \u201cDecisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public\u2019s will as expressed through elections,\u201d he told the forum in Stockholm.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>Powell\u2019s comments, particularly about climate change, are not new.<\/p>\n<p>But the restatement came in sharp terms as his first public remarks since the Republican Party installed one of its members as Speaker of the House of Representatives, and began selecting new chairs for the committees that oversee\u00a0federal government operations including the\u00a0Fed.<\/p>\n<p>Powell, now in his fifth year as\u00a0Fed\u00a0chair, has put a high priority on building strong relationships with elected officials from both major parties, but faced criticism from some Republicans for, in their view, allowing the\u00a0Fed\u00a0to wander from its core responsibilities into areas like climate change and the economics of race.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Staying_on_mission\"><\/span>Staying on mission<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Climate change has been a particular flashpoint.<\/p>\n<p>While Powell\u2019s view of the\u00a0Fed\u2019s role stands in contrast to major central banks in Europe that have integrated green economy efforts into their policymaking, it recognizes the more divided politics in the US.<\/p>\n<p>Powell appeared to nod to that in his comments in Stockholm.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/fed-climate-change.jpg?w=1024\" alt=\"Climate change poster\" class=\"wp-image-25305659\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/fed-climate-change.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/fed-climate-change.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/fed-climate-change.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>While Powell\u2019s view of the Fed\u2019s role stands in contrast to major central banks in Europe that have integrated green economy efforts into their policymaking, it recognizes the more divided politics in the US.<\/figcaption><figcaption><span class=\"credit\">Shutterstock<\/span><\/figcaption><\/figure>\n<p>To maintain authority over its core mission of managing inflation and demand, \u201cwe need to deserve it, and that means stick to that work and don\u2019t look for broader things,\u201d Powell said. \u201cWe shouldn\u2019t be getting ahead of where the public is if there\u2019s no specific mandate. In the case of the US that\u2019s a particularly salient point.\u201d<\/p>\n<p>There\u2019s even disagreement within the\u00a0Fed\u00a0over the appropriate stance on climate risks.<\/p>\n<p>When the\u00a0Fed\u00a0recently asked for public comment about \u201ca high-level framework for the safe and sound management of exposures to climate-related financial risks,\u201d\u00a0Fed\u00a0Governor Christopher Waller said he did not support issuing guidance on the issue because while \u201cclimate change is real\u2026I disagree with the premise that it poses a serious risk\u201d to financial stability.<\/p>\n<p>When it comes to inflation, however, Powell said it was critical the\u00a0Fed\u00a0retain the ability to manage as it sees fit \u2013 raising interest rates to control inflation even if that means slower growth and higher unemployment.<\/p>\n<p>Powell said he felt that principle is\u00a0\u201cwell understood and broadly accepted,\u201d in the US, embodied in a\u00a0federal law that charges the\u00a0Fed\u00a0with maintaining maximum employment and stable prices.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/10\/jerome-powell-says-fed-should-avoid-climate-change-issues\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Jerome Powell says Fed should avoid climate change issues&#8221; The\u00a0Federal Reserve\u2019s independence from political influence is central to its ability to battle inflation, but requires it stay out of issues like climate change that are beyond its congressionally established mandate,\u00a0Fed\u00a0Chair Jerome Powell said Tuesday. \u201cRestoring price stability when inflation is high can require measures that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":538536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/fed-powell-climate-comp.jpg?quality=75&strip=all&1673349768&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[138291,43485,70550,70551,70552,78738],"class_list":["post-538535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-10-23","tag-climate-change","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-jerome-powell"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=538535"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/538536"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=538535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=538535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=538535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}