This Week in ESG and Impact Investing

  Donald Trump’s latest insult—calling Federal Reserve Chair Jerome Powell a “numbskull” who “makes it difficult for people to buy a house”—is not only juvenile but deeply irresponsible. This is not an isolated outburst. It is part of a broader, calculated campaign to undermine the independence of the Federal Reserve and bend monetary policy to political will. As I wrote in my recent American Banker  Newspaper op-ed, " Trump’s assaults on the Federal Reserve’s independence must cease ," these actions represent a direct threat to the institutional foundations of our financial system. Let’s be clear: housing affordability issues stem more from Trump-era inflationary policies, deregulation, and tax cuts for the wealthy than anything Powell has done. The Fed, under Powell, has pursued interest rate policy to stabilize inflation—something necessary after Trump’s fiscal mismanagement during and after the pandemic. This latest attack is meant to distract the public from Trump’s own ...

Recent tensions between the White House and Federal Reserve Chairman Jerome Powell have brought the issue of central bank independence into sharp focus. JPMorgan Chase CEO Jamie Dimon's warning that "the independence of the Fed is absolutely critical" and that "playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for" reflects concerns quietly shared across the financial community about maintaining the institutional integrity that has anchored American economic stability and ensured America’s financial dominance. Recently, Creative Investment Research published an op-ed in the BankThink section of the American Banker Newspaper reflecting these same concerns. You can view the article here:  https://www.impactinvesting.online/2025/07/bankthink-trumps-assaults-on-federal.html Federal Reserve independence exists for compelling reasons. When central banks operate under executive branch political pressure, they ...

At a July 8 cabinet meeting, President Donald Trump launched a fresh barrage of attacks on Federal Reserve Chairman Jerome Powell over his handling of interest rates, claiming Trump's team could "do a better job than him," accusing Powell of lying to Congress and calling for his resignation. The president even suggested that Powell acted to benefit the Biden-Harris campaign by speeding up rate cuts under Trump's predecessor, and slow-walking them now. "He's always late with me, not with Biden," Trump said, implying that Powell's monetary policy decision-making was politically motivated. The truth is as follows: Mr. Powell has a documented history of nonpartisan behavior when it comes to monetary policy, most recently displayed on June 24th during testimony before the House Financial Services Committee. Maintaining a nonpartisan stance, the Fed chair refused to make any comments about either Trump or the administration's fiscal policy. Of course, ...

Federal Reserve Chair Jerome Powell's August 23, 2024 speech  was a significant announcement forecasting future Fed interest rate policy. With inflation moving closer to the 2% FOMC target, occurring without a sharp rise in unemployment, the statement set the stage for possible rate cuts in September.  Mr. Powell reviewed challenges to the post-pandemic economy, including supply constraints and demand surges. He noted the Fed's commitment to supporting a strong labor market while gradually easing policy restraints. (See: Does Asymmetric Monetary Policy Exacerbate Asymmetric Outcomes? https://www.impactinvesting.online/2024/06/does-asymmetric-monetary-policy.html .) For several reasons, this approach is particularly relevant to minority firms: 1. Access to Capital: Lower inflation and stable interest rates improve borrowing conditions. Minority businesses, often more reliant on external financing, benefit from easier access to affordable credit. 2. Labor Market Stability: Minor...

The semi-annual Senate Banking Committee hearing was held on July 9 with the Chairman of the Federal Reserve, Jerome Powell, as witness. While the hearing may not have been particularly eventful, it served as a lesson on the link between American monetary policy and politics. It also provided insight on what's in store for the US economy.  The United States Senate Committee on Banking, Housing, and Urban Affairs is chaired by Senator Sherrod Brown (D - OH) with Tim Scott (R - SC) serving as the ranking member. Both began the hearing by thoroughly dressing down Chairman Powell for the state of the economy over the last few years. Their opening statements served as a strong display of political grandstanding with little sincerity behind their words. Chairman Brown blamed the increase in price levels and inflation on corporate greed and constantly referred to 'the good citizens of Ohio' that he represented, while Tim Scott spent his time attacking Bidenomics and fear mongering...

Last week, Chairman of the Federal Reserve, Jerome H. Powell appeared before the House of Representatives Committee on Financial Services to present the Semiannual Monetary Policy Report. Chairman Powell opened his remarks by stating that “the economy performed reasonably well over the first half of 2019 and the current expansion is now in its 11 th year.” Inflation has run below the FOMC 2% objective, trade tensions and concerns about global growth have weighed on economic activity." The Current Economic Situation Labor Market: job gains remain healthy, with the unemployment rate falling to 3.7% in June. Employers are increasingly willing to hire and train workers with fewer skills.   Unemployment for African Americans and Hispanics remain well above the rates of whites and Asians. Urban employment rates are higher than those in rural communities. Labour force participation by those in their prime working years is lower in the US than in comparable nations. G...

The Federal Reserve Act (FRA) requires the Chairman of the Federal Reserve System  to testify before the House Financial Services Committee and the Senate Banking Committee twice a year, in February and July, on how the Board handles monetary policy and its observations on economic developments. In keeping with that requirement, the current Chairman of the Federal Reserve, Jerome Powell, testified before the House on July 10th. He indicated as follows: Economic activity increased at a solid pace in the first part of 2019. The labor market has continued to strengthen: unemployment fell from 3.9% (Dec) to 3.6% (May), wage gains remained moderate.  Inflation has been running below the Federal Open Market Committee’s ( FOMC ) longer- run objective of 2 percent.  In June, the FOMC judged that current and prospective economic conditions called for maintaining the target range for the federal funds rate at 2 1⁄4 to 2 1⁄2 percent.  Inflation: Consumer Price I...