Washington, D.C.--U.S. Senators Mike Crapo, Jim Risch (both R-Idaho) and seven other senators sent a letter today to Federal Reserve (Fed) Chair Jerome Powell cautioning the Fed to stop engaging in climate activism far outside of its statutory authority. Instead, they urge a return to addressing the pressing issues facing the American people such as record inflation and the recent regional banking collapse that sparked “a crisis of confidence” in the banking system.
“This is policy masquerading as ‘risk analysis,’” the letter reads. “The Fed is actively signaling that bank activities that do not further the goals of net zero by 2050 are inherently risky and disfavored. This drives capital away from traditional energy development at a critical time for our economic and national security, while empowering America’s adversaries. This climate stress test is the logical result of a persistent and growing track record of climate activism at the Fed…
“There is no shortage of work to be done on issues directly within your statutory authority as evidenced by the Fed’s recent whiff on inflationary policy and inept oversight leading to the SVB crisis. The independence of the central bank is a hallmark of our financial system and is crucial to protecting it from partisans with short-term interests, however, this independence has been greatly undermined by the Fed’s persistence on entering into the political arena – especially on the issue of climate change. The legitimacy of the institution is on the line, and we again urge you to do everything in your power to ensure that the Fed operates solely within its statutory authority.”
Other signatories of the letter include Senators Dan Sullivan (R-Alaska), Kevin Cramer (R-North Dakota), Joni Ernst (R-Iowa), Mike Braun (R-Indiana), Roger Marshall (R-Kansas), Ted Budd (R-North Carolina) and Mike Lee (R-Utah).
Click here to read the full letter.