We need to be clear about what central banks can and cannot do. With respect to the Eurosystem and its mandate, I have repeatedly highlighted the limits of monetary policy. [13] Governments and parliaments have both the democratic legitimacy and the tools to steer our economies to net-zero.
And, as I mentioned, the act provides the Federal Reserve the authority to pay interest on reserves, which will allow us to better manage the federal funds rate as we provide liquidity to the markets. We will begin exercising that authority this week.