• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy GOP senators press Federal Reserve on climate agenda amid record inflation, banking uncertainty
Economy

GOP senators press Federal Reserve on climate agenda amid record inflation, banking uncertainty

by May 17, 2023
by May 17, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

EXCLUSIVE: A coalition of nine Senate Republicans led by Sen. Dan Sullivan, R-Alaska, sent a letter Wednesday morning to Federal Reserve Chair Jerome Powell, blasting the central bank for its climate agenda amid other pressing issues.

Sullivan and the other Republicans criticized the Fed — which has a statutorily defined mission of promoting ‘maximum employment, stable prices, and moderate long-term interest rates’ — for increasingly pursuing a climate agenda, according to the letter first obtained by Fox News Digital. The lawmakers said the central bank should instead focus on issues within its mandate such as inflation and uncertainty in the banking sector.

‘We are growing increasingly frustrated with the Federal Reserve’s engagement on environmental policymaking and research far outside of its statutory mandate, all while there is persistent inflation and a crisis of confidence in the banking sector,’ they stated in the letter to Powell. 

‘We urge you to rein in the Fed’s regional banks and its economists who are seemingly ignoring your leadership,’ the letter continued. ‘The Fed’s credibility hangs in the balance, and without a course correction, history will find you either complicit or ineffective as Chairman.’

The Republicans pointed to comments from Powell throughout his tenure leading the central bank affirming his commitment to the Fed’s statutory mandate, leaving social and political policies to Congress. 

In January, Powell stressed the importance of the Fed resisting ‘the temptation to broaden our scope to address other important social issues of the day.’ The Fed chairman even went as far as to say that climate policymaking should be left to the ‘elected branches of government and thus reflect the public’s will as expressed through elections.’

However, a week after the comments, which Powell made during a global summit in Sweden, the Fed told the nation’s six largest banks to produce data about how their business might be impacted by climate change and, separately, a green transition to net zero greenhouse gas emissions by 2050.

‘The Fed is actively signaling that bank activities that do not further the goals of net zero by 2050 are inherently risky and disfavored,’ the Republicans’ letter Wednesday added. ‘This drives capital away from traditional energy development at a critical time for our economic and national security, while empowering America’s adversaries.’

The Fed’s so-called climate stress test, the letter continued, is the logical result of a ‘persistent and growing track record of climate activism at the Fed.’ They noted, the central bank has also joined the Network for the Greening of the Financial System, the Fed’s regional banks host climate-focused events, and it has published hundreds of policy papers, studies, and documents dedicated to climate change.

Meanwhile, over the last two years, year-over-year inflation has worsened from 2.6% to a more than four-decade high of 9.1% in June 2022, but has come down to 4.9% as of April. The slowed inflation rate rise has been coupled by rapid Fed rate hikes, from near-zero 0.25% in March 2022 to 5.25% this month.

The Federal Reserve has been widely criticized for maintaining extremely low pandemic-era interest rates for too long.

In addition, three major banks — First Republic Bank, Silicon Valley Bank and Signature Bank which had assets worth $212 billion, $209 billion and $110 billion, respectively, according to Federal Reserve data — recently imploded partly as a result of high interest rates. The Federal Deposit Insurance Corporation estimated its actions to resolve the failures will cost taxpayers about $36 billion.

‘When federal regulators become political and start prioritizing activist-driven ESG principles rather than doing the jobs federal law requires them to do, areas of concern quickly become crises, and the American people are left to face the consequences,’ Sullivan told Fox News Digital in a statement. 

‘From the regional banking crisis experienced earlier this year to the growing influence China holds on American businesses, there are serious problems and national security threats that require our federal government’s focus,’ the Alaska senator continued. ‘Unfortunately, during the Biden administration, we’ve seen the politics of far-left environmental activists infiltrate a wide range of offices and agencies intended to be apolitical.’

‘Whether it’s the Securities & Exchange Commission, the Federal Reserve, the Defense Department, or others, my colleagues and I will continue to hold federal officials accountable to the American people and ensure they are following the law,’ Sullivan said

Sens. Mike Crapo, R-Idaho, Joni Ernst, R-Iowa, Mike Braun, R-Ind., Roger Marshall, R-Kan., Ted Budd, R-N.C., Mike Lee, R-Utah, Kevin Cramer, R-N.D., and James Risch, R-Idaho, signed onto Sullivan’s letter Wednesday.

And Sullivan penned a separate letter Tuesday to Securities and Exchange Commission Chairman Gary Gensler, expressing his concern about the Wall Street regulator’s focus on climate change.

‘The SEC should be focusing on these issues and ensuring that American investors are protected from a shaky Chinese economy and dangerously fickle and politically-focused authoritarian rule by the CCP,’ Sullivan wrote in that letter. ‘Yet the SEC seems divorced from this reality, pursuing an aggressive agenda of unnecessary climate disclosures and other burdensome rules.’

Thomas Catenacci is a politics writer for Fox News Digital.

This post appeared first on FOX NEWS
You Might Also Like
  • How the GOP conference came together to elect Mike Johnson as speaker, despite McCarthy meddling
  • A Birthday No One Celebrates
  • Obamas’ chef who drowned while paddleboarding wasn’t wearing life vest, no foul play suspected, police say
  • GOP fumes after Secret Service closes White House cocaine probe without a culprit: ‘just ridiculous’
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Missouri ends rule limiting gender transition treatments for minors, some adults
next post
Minnesota Senate passes sweeping gun control laws, including ‘red flag law’

You may also like

Hunter Biden tax probe began as ‘offshoot’ IRS investigation into...

June 23, 2023

Trump’s lead just won’t budge: Why the debates may be...

June 18, 2024

Cotton slams Harris as ‘naive’ on Iran, blasts VP for...

August 11, 2024

Biden agency ‘likely’ violated free speech by working with Big...

October 5, 2023

IN OR OUT? New poll reveals where Republican voters stand...

June 17, 2023

Americans told to ‘avoid’ gatherings in Moscow, Russia amid reports...

March 8, 2024

The American Heritage of Freedom in the Liberal Arts

December 16, 2022

Ethereum is still under pressure from the EMA 200 today

October 9, 2024

Trump leads Biden on most of the key issues in...

June 4, 2024

Do Our Roads Have to be Built by Government?

December 10, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Trump turns conviction into cash, with...

    May 31, 2024

    House Republicans keeping promise to lead...

    January 16, 2023

    Haley, DeSantis fire shots at Trump...

    January 11, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here