Fed chair argues for limited role of bank on climate change

‘Narrow but important responsibilities’

Jerome Powell, chair of the US Federal Reserve, responded to critics' claims that the central bank was overstretching its remit by wading into climate policies in a speech yesterday (10 January).

Speaking in Sweden at the Symposium on Central Bank Independence, Powell said the Fed 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". He said that pursuing goals, "however worthy," without a statutory mandate would "undermine the case of our independence". Powell also noted that some analysts have begun questioning whether bank supervision of "perceived risks associate with climate change" was in line with the central bank's responsibilities. "Decisions about policies to dire...