Powell speech: We are not and will not be a climate policymaker

While speaking at Riksbank's International Symposium on Central Bank Independence, FOMC Chairman Jerome Powell said the Federal Reserve's independence from political influence is central to its ability to battle inflation, as reported by Reuters. Powell further noted that this independence requires the Fed to stay out of issues like climate change that are beyond its congressionally-established mandate.

"We are not, and will not be, a climate policymaker," Powell reiterated.

Additional takeaways

"Fed must resist the temptation to broaden its scope to address other important social issues."

"Taking on such goals would undermine our independence."

"Fed has narrow responsibilities regarding climate-related financial risks."

"Without congressional laws, inappropriate for us to use our monetary or supervisory tools to promote a greener economy."

"Also inappropriate for us to use our tools to achieve other climate-based goals."

Market reaction

The US Dollar came under modest selling pressure following these comments. As of writing, the US Dollar Index was virtually unchanged on the day at 103.15.