{"id":1801701,"date":"2023-01-11T06:06:09","date_gmt":"2023-01-11T11:06:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801701"},"modified":"2023-01-11T06:07:31","modified_gmt":"2023-01-11T11:07:31","slug":"chair-jerome-powell-stresses-fed-independence-defers-climate-policymaking","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chair-jerome-powell-stresses-fed-independence-defers-climate-policymaking\/","title":{"rendered":"Chair Jerome Powell Stresses Fed Independence, Defers Climate Policymaking"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchair-jerome-powell-stresses-fed-independence-defers-climate-policymaking%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801701&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p><a href=\"https:\/\/www.theepochtimes.com\/t-federal-reserve\">Federal Reserve<\/a> Chair Jerome Powell stressed that the central bank must be independent while dealing with rising inflation.<\/p>\n<p>During a <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/speech\/powell20230110a.htm\">Speech<\/a> at Sweden\u2019s Riksbank on Tuesday, the head of the U.S. central bank stated that resuscitating price stability requires employing difficult measures that may not be politically popular.<\/p>\n<p>\u201cPrice stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. 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,\u201d He spoke at a Stockholm central bank forum. \u201cThe absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors.\u201d<\/p>\n<p>Powell stressed that \u201cindependence comes the responsibility to provide the transparency that enables effective oversight by Congress\u201d that can facilitate the central bank\u2019s \u201cdemocratic legitimacy.\u201d<\/p>\n<p>Recent years have seen politicians from both sides of Congress criticize the Federal Reserve system.<\/p>\n<p>Sen. Elizabeth Warren (D-Mass.For example, he repeatedly hit the body with his fists over the past year.<\/p>\n<p>Warren and other Democratic senators signed a legislation in November <a href=\"https:\/\/www.warren.senate.gov\/oversight\/letters\/warren-dean-lawmakers-ask-fed-chair-powell-how-many-millions-will-be-thrown-out-of-their-jobs-from-feds-dangerous-rate-hikes\">Letter<\/a> expressing concerns over Powell\u2019s \u201cdisturbing warning that American families should expect \u2018pain\u2019 over coming months.\u201d<\/p>\n<figure id=\"attachment_4610435\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/20\/sen-warren-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4610435\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/sen-warren-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4610435\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/sen-warren-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Sen Elizabeth Warren (D.Mass..), speaks at Washington, July 12, 2022. (Kevin Dietsch\/Getty Images)<\/figure>\n<p>\u201cYou continue to double down on your commitment to \u2018act aggressively\u2019 with interest rate hikes and \u2018keep at it until it\u2019s done,\u2019 even if \u2018no one knows whether this process will lead to a recession or if so, how significant that recession would be.\u2019 These statements reflect an apparent disregard for the livelihoods of millions of working Americans, and we are deeply concerned that your interest rate hikes risk slowing the economy to a crawl while failing to slow rising prices that continue to harm families,\u201d These were the words of the legislators.<\/p>\n<p>Warren, Massachusetts was the summer of 2003. <a href=\"https:\/\/www.cnn.com\/2022\/08\/28\/politics\/elizabeth-warren-jerome-powell-recession-cnntv\/index.html\">Submitted<\/a>\u00a0CNN reports that she is \u201cvery worried\u201d that the Fed\u2019s tightening cycle will \u201ctip the economy into recession.\u201d<\/p>\n<p>Since March, the Fed has raised benchmark interest rates by 425 basis points, bringing the federal funds rate to a 15-year high, to a range of\u00a04.25\u20134.50 percent.<\/p>\n<p>The White House reaffirmed President Joe Biden\u2019s commitment to Fed independence during a meeting with Powell in May.<\/p>\n<p>\u201cThe president underscored to Chair Powell in the meeting what he has underscored consistently, including today, that he respects the independence of the Federal Reserve,\u201d Brian Deese, the president\u2019s top economic adviser, <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/press-briefings\/2022\/05\/31\/press-briefing-by-press-secretary-karine-jean-pierre-members-of-bts-and-national-economic-council-director-brian-deese-may-31-2022\/\">Submitted<\/a> reporters.<\/p>\n<p>Last month, Republican senators led by Pat Toomey (R-Penn), were led by the Ranking Member of Senate Banking Committee Pat Toomey.), <a href=\"https:\/\/www.banking.senate.gov\/newsroom\/minority\/toomey-republican-senators-introduce-federal-reserve-reform-legislation\">introduced<\/a> the Federal Reserve Accountability Act. The purpose of the legislation is to bolster the organization\u2019s accountability.<\/p>\n<p>\u201cDespite their narrow and nonpartisan statutory mandates, the Fed and regional Fed banks have increasingly inserted themselves into politically charged issues like global warming and social justice,\u201d said Sen. Toomey in a statement. \u201cCongress has a responsibility to ensure the Fed does not become a political actor. This legislation will further that important goal by reforming the Fed to make it more accountable to Congress and the American people.\u201d<\/p>\n<h2>Climate Policymaking<\/h2>\n<p>According to the Federal Reserve Act of 1913, the Fed\u2019s mandates have been maximum employment, price stability, and moderate long-term interest rates. However, in 2020, it did <a href=\"https:\/\/www.minneapolisfed.org\/article\/2022\/seeking-maximum-employment\">update<\/a> its monetary policy guidance that redefines full employment as \u201ca broad-based and inclusive goal that is not directly measurable and changes over time owing largely to nonmonetary factors that affect the structure and dynamics of the labor market.\u201d<\/p>\n<p>In recent years, Fed officials, lawmakers, and economists have suggested that the central bank add another mandate: climate change.<\/p>\n<p>Although the Fed could consider climate-related financial risks, Powell believes that adopting new objectives \u201cwithout a clear statutory mandate would undermine the case for our independence.\u201d<\/p>\n<p>Addressing climate change should be performed by elected branches of government that reflect the will of the people, Powell suggested.<\/p>\n<p>\u201cBut without 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. \u201cWe are not, and will not be, a \u2018climate policymaker.&#8217;\u201d<\/p>\n<p>This year, the Fed will <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/other20220929a.htm\">establish<\/a> a pilot program that will feature the country\u2019s six largest banks to participate in a \u201cscenario analysis\u201d that tests these companies\u2019 stability following significant climate events.<\/p>\n<h2>Any Hints?<\/h2>\n<p>Powell was quiet about any potential decisions ahead of the upcoming two-day Federal Open Market Committee (FOMC) policy meeting on Jan. 31\u2013Feb.1.<\/p>\n<p>With price inflation growth slowing, investors widely expect the Fed to pull the trigger on a quarter-point rate hike, lifting the target rate to a range of 4.50\u20134.75 percent, according to the <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">CME FedWatch Tool<\/a>.<\/p>\n<p>Despite the annual inflation heading downward, the consensus at the Fed is that more work needs to be done to return inflation to the Fed\u2019s target rate of 2 percent. At the same time, there is a growing expectation that the central bank will start cutting interest rates in response to a recession.<\/p>\n<p>\u201cWith a sharp rise in the unemployment rate triggered by a recession and inflation showing clearer signs of progress by end-2023, we expect the Fed to cut rates by 200 basis points through mid-2024, approaching a neutral level around 3 percent in 2024,\u201d Deutsche Bank economists said in a note.<\/p>\n<p>According to the Fed\u2019s <a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/fomcprojtabl20221214.htm\">Survey of Economic Projections (SEP)<\/a>, officials see the GDP growth rate at 0.5 percent in 2023 and the unemployment rate rising to 4.6 percent.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a>\n\t\t\t\t\t<\/div>\n<p>Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chair Jerome Powell stressed that the central bank must be independent while dealing with rising inflation. During a Speech at Sweden\u2019s Riksbank on Tuesday, the head of the U.S. central bank stated that resuscitating price stability requires employing difficult measures that may not be politically popular. \u201cPrice stability is the bedrock of a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1801704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[5458,5184,4321,14340,7498,9224,8976,14338,8975,3819,14339],"class_list":["post-1801701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bongino","tag-chair","tag-climate","tag-defers","tag-fed","tag-independence","tag-jerome","tag-policymaking","tag-powell","tag-report","tag-stresses"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1801701"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1801704"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1801701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1801701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1801701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}