Powell Says Federal Reserve Should 'Stick to Our Knitting'

The video discusses the Federal Reserve's independence in monetary policy, emphasizing its importance in maintaining price stability and insulating decisions from short-term political pressures. It highlights the need for transparency to ensure effective oversight and democratic legitimacy. The Fed is urged to focus on its statutory goals and avoid expanding its scope to address social issues without clear mandates. The video also touches on the Fed's limited role in managing climate-related financial risks, stressing that significant policy decisions should be made by elected government branches.

What is the significance of sticking to statutory goals for the Federal Reserve?

How does the Federal Reserve view its role in addressing climate change?