Fed needs independence to fight inflation, says Powell

But “we should ‘stick to our business’ and not wander in search of perceived social benefits that are not closely linked to our goals and legal authorities,” he said in remarks at a forum on central bank independence sponsored by the Swedish central bank. .

Although Powell asserted that the Fed’s regulatory powers give it a “narrow” role in ensuring that financial institutions “properly manage” the risks they face from climate change, “We are not, and will not be, a ‘climate policymaker’. ‘”.

“Without explicit legislation from Congress, 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 objectives.”

“Policy decisions to directly address climate change should be made by the elected branches of government and therefore reflect the will of the public expressed through elections,” he added at the forum in Stockholm.

Powell’s comments, particularly on climate change, are not new.

But the reaffirmation came in sharp terms as his first public comments since the Republican Party installed one of its members as speaker of the House of Representatives and began selecting new chairmen for committees that oversee the operations of the federal government, including the Fed. .