Federal Reserve Must Not Become a Climate Policymaker, Senate Republicans Say

Federal Reserve Must Not Become a Climate Policymaker, Senate Republicans Say
Federal Reserve Chair Jerome H. Powell testifies before a Senate Banking, Housing, and Urban Affairs Committee hearing on “The Semiannual Monetary Policy Report to the Congress” on Capitol Hill in Washington on March 7, 2023. Kevin Lamarque/Reuters
Andrew Moran
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In a letter to Federal Reserve Chair Jerome Powell, a group of Senate Republicans criticized the central bank for initiating its climate agenda while the institution grapples with rampant inflation and banking turmoil.

Upper chamber GOP officials, led by Sen. Dan Sullivan (R-Alaska), wrote that the Fed is inching toward implementing climate change into its mandate, which could diminish its focus on fighting elevated price pressures and “a crisis of confidence” in the financial sector. As per the Federal Reserve Act, the central bank’s chief mandates are price stability, maximum employment, and managing long-term interest rates.

Andrew Moran
Andrew Moran
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Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."
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