Peace Garden News

WASHINGTON — U.S. Senator Kevin Cramer (R-ND), member of the Banking Committee, joined Senator Dan Sullivan (R-AK) and seven colleagues in sending Federal Reserve (Fed) Chair Jerome Powell a letter to discourage further engagement in environmental, social, and governance (ESG) issues, as they are beyond the Fed’s statutory authority.

The senators urged him to shift the focus of the central bank towards matters like the record inflation Americans are experiencing and recent bank collapses which sparked “a crisis of confidence” in the system. The group referenced Chair Powell’s previous assurances the Fed is not a “climate policymaker;” however, under his leadership, the Fed has started to incorporate ESG principles into the risk analyses it requires of banks.

“This is policy masquerading as ‘risk analysis,’” wrote the senators. “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,” they continued.

Joining Senators Cramer and Sullivan are Senators Mike Crapo (R-ID), Joni Ernst (R-IA), Mike Braun (R-IN), Roger Marshall (R-KS), Ted Budd (R-NC), Mike Lee (R-IN), and James Risch (R-ID).

Click here to read the letter.

Original source can be found here.