Fed Must Be Free of
'Political Control', to Curb Inflation, , Powell Says.
Federal Reserve Chairman Jerome Powell made the comments on Jan. 10.
Powell stated that preventing further price increases might mean the Fed makes decisions that are disliked by either side of the political aisle.
Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. , Jerome Powell, Federal Reserve Chairman,
via NBC News.
But restoring 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, Jerome Powell, Federal Reserve Chairman,
via NBC News.
The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors, Jerome Powell, Federal Reserve Chairman,
via NBC News.
Powell made the comments as part of a speech focused on the autonomy of a nation's central bank.
Powell also responded to calls for the Fed to enact policy that would address climate change.
[The Federal Reserve should] stick to our knitting and not wander off to pursue perceived social benefits that are not tightly linked to our statutory goals and authorities, Jerome Powell, Federal Reserve Chairman,
via NBC News.
The Federal Reserve has directed major banks to take stock of how prepared the institutions would be in the event of a major climate crisis.
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, Jerome Powell, Federal Reserve Chairman,
via NBC News.
But without explicit congressional legislation, it would be inappropriate for us to use our monetary policy ... , Jerome Powell, Federal Reserve Chairman,
via NBC News.
... or supervisory tools to promote a greener economy
or to achieve other climate-based goals. , Jerome Powell, Federal Reserve Chairman,
via NBC News.
We are not, and will not be, a ‘climate policymaker.’, Jerome Powell, Federal Reserve Chairman,
via NBC News