One afternoon following a recent 200-point decline in the Dow Jones Industrial Average, Fox Business News host Charles Payne remarked, “The market had a tough week; the big nemesis is the Federal Reserve.”

I hate to break the news to Mr. Payne, but the role of the Federal Reserve is not to support or prop up stock prices. Nor is the purpose of the Federal Reserve to combat climate change – something the newest Fed Board of Governors nominee has suggested is a proper function of the U.S. central bank.

It is intriguing that an entity with more than $9 trillion in assets – purchased with money created from nothing – is understood by few people, including sometimes those charged with leading the organization. Fed officials have recently committed the central bank’s resources to reversing racial and gender economic disparities. In mid-November 2020, Chair Jerome Powell said that the Fed was very actively working to incorporate climate change into its thinking about financial regulation.

David Moon

In November 2020, the Fed should have been very actively thinking about ways to forestall the inflationary effects of an economic shutdown and $13.7 trillion of COVID-19 stimulus programs, not sucking up to the new president.

Saving the world from climate-ignited extinction is a pretty laudable goal, as is preventing discrimination against people based on their appearances. So are cancer research, K-12 education and national defense. However, none of those very deserving efforts are the purpose of the Federal Reserve.

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