Powell, speaking at Stanford University, said that it is crucial to avoid “mission creep” in order to maintain the public’s trust. He said the central bank needs to focus solely on its dual mandate of price stability and maximum employment. “Policies to address climate change are the business of elected officials and those agencies that they have charged with this responsibility,” Powell said. “The Fed has received no such charge.
We do, however, have a narrow role that relates to our responsibilities as a bank supervisor.” While he has stated similar views in the past, the emphasis on the Fed remaining independent comes as some climate activists want the central bank to take a more hands-on role in curbing Powell said that the public expects that the institutions, like banks, that the Fed regulates and supervises will comprehend and be able to manage “the material risks that they face, which, over time, are likely to include climate-related financial risk