Washington, D.C. (KINY) - U.S. Senator Dan Sullivan and eight other senators sent a letter to Federal Reserve (Fed) Chair Jerome Powell cautioning the Fed to stop engaging in "climate activism".
They cautioned the Fed to stop engaging in "climate activism" far outside of its statutory authority, and to instead return to addressing other pressing issues facing the American people, such as inflation and the recent regional banking collapse that sparked “a crisis of confidence” in the banking system.
“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,” Senator Sullivan said in a statement.
“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.”
In the letter, the senators emphasize that during Chairman Powell’s confirmation process, he noted that the Fed is not a “climate policymaker,” yet, under his leadership, the Fed has effectively begun implementing activist ESG-principles into the risk analysis it requires of banks, commonly referred to as a “climate-stress test.”
“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 Mike Crapo (R-Idaho), Kevin Cramer (R-ND), Joni Ernst (R-Iowa), Mike Braun (R-IN), Roger Marshall (R-KS), Ted Budd (R-NC), Mike Lee (R-IN), and James Risch (R-Idaho).
You can read the full letter here.