Powell: Fed has only narrow role to play on climate change

By CHRISTOPHER RUGABER and DAVID MCHUGH
Associated Press Writers

WASHINGTON (AP) — The Federal Reserve has only a limited role to play in combating climate change, Chair Jerome Powell said Tuesday, a stance that puts him at odds with environmental activists who have pushed central banks worldwide to take steps to restrict lending to energy companies. Powell said that maintaining the Fed’s independence includes steering clear of issues that are more properly overseen by elected officials. “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,” Powell said during a panel discussion in Stockholm. “We are not, and will not be, a ‘climate policymaker.’ ”