BAFL 53.19 Increased By ▲ 3.16 (6.32%)
BIPL 22.90 Increased By ▲ 0.49 (2.19%)
BOP 5.67 Increased By ▲ 0.25 (4.61%)
CNERGY 5.12 Increased By ▲ 0.07 (1.39%)
DFML 19.35 Increased By ▲ 0.17 (0.89%)
DGKC 80.54 Increased By ▲ 0.39 (0.49%)
FABL 33.11 Increased By ▲ 0.26 (0.79%)
FCCL 20.25 No Change ▼ 0.00 (0%)
FFL 10.48 Increased By ▲ 0.83 (8.6%)
GGL 13.61 Increased By ▲ 0.01 (0.07%)
HBL 129.52 Increased By ▲ 8.18 (6.74%)
HUBC 123.38 Increased By ▲ 0.88 (0.72%)
HUMNL 8.04 Increased By ▲ 0.04 (0.5%)
KEL 4.43 Increased By ▲ 0.46 (11.59%)
LOTCHEM 28.01 Decreased By ▼ -0.07 (-0.25%)
MLCF 42.71 Increased By ▲ 0.51 (1.21%)
OGDC 125.38 Increased By ▲ 4.05 (3.34%)
PAEL 21.33 Increased By ▲ 1.10 (5.44%)
PIBTL 6.11 Increased By ▲ 0.31 (5.34%)
PIOC 118.47 Increased By ▲ 2.57 (2.22%)
PPL 113.85 Increased By ▲ 3.10 (2.8%)
PRL 31.80 Increased By ▲ 2.22 (7.51%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 69.44 Increased By ▲ 0.41 (0.59%)
SSGC 13.76 Increased By ▲ 0.06 (0.44%)
TELE 9.16 Increased By ▲ 0.41 (4.69%)
TPLP 14.79 Increased By ▲ 0.12 (0.82%)
TRG 92.45 Increased By ▲ 1.15 (1.26%)
UNITY 27.47 Increased By ▲ 0.22 (0.81%)
WTL 1.67 Increased By ▲ 0.04 (2.45%)
BR100 6,815 Increased By 167.1 (2.51%)
BR30 24,245 Increased By 677 (2.87%)
KSE100 66,224 Increased By 1505.6 (2.33%)
KSE30 22,123 Increased By 529.1 (2.45%)

PARIS: US Federal Reserve chief Jerome Powell said Friday it was not the central bank’s role to set climate policy, a stance rejected by European counterpart Christine Lagarde who warned that “the planet is burning”.

“We are not and we do not seek to be climate policy makers as such. We have a very specific mandate and precious independence,” Powell told a videoconference hosted by the Bank of International Settlements (BIS) and France’s central bank.

“We should avoid trying to fill in public policy where governments haven’t done so yet, that’s not up to us,” the head of the US central bank concluded.

Lagarde did not agree.

“Our planet is burning and we, central bankers, could look down at our mandate and pretend that it is for others to act. And that we should simply be followers, I don’t think so,” Lagarde said.

“I believe that if we did, we would be failing on our mandate and that we would be missing in action,” she added.

Chinese counterpart Yi Gang agreed that “our planet is in danger”, and added: “The most important thing we are doing is to tell the general public how important green finance and climate change risk is.”

Lagarde, who has made climate protection financing an ECB priority, referred to one of its key concerns when she said: “Climate change could impair monetary policy transmission because it is likely to induce financial instability if it is not taken into account.”

The bank would be “squarely in our mandate when we guide banks on climate related risks as well as environmental risks,” she added.

Powell steadfastly sought to keep the Fed out of the fray, however, saying that “climate change is not something we directly consider in setting monetary policy.”

He nonetheless acknowledged that “there is no question that climate change has the potential to affect the structure of the economy over time.

“Central banks clearly can play an important role in building data and analysis to understand the macroeconomic consequences of climate change, to qualify the risks for financial system through scenario analysis for example.”

Gang agreed that central banks could play an informative role “so that households, general public, firms, enterprises and also ordinary people understand the very implication of climate change.”


Comments are closed.

Powell, Lagarde split over central bank role in climate policy

Israel strikes Gaza after failed UN ceasefire bid

$100 billion export vision: Pakistan eyes to reduce trade deficit with China

Nawaz stresses on improving relations with India, other neigbours

Gold price per tola falls Rs3,000 in Pakistan

Sarah Inam murder case: Verdict to be announced on December 14

Iran says reviving nuclear deal 'useless'

COP28 president says summit 'making progress, but not fast enough'

OPEC members push against including fossil fuels phase-out in COP28 deal

Turkiye's Erdogan denounces UN 'Israel protection council'

Sydney bakes in hottest day in three years