Federal Reserve Chairman Jerome Powell tells the House Financial Services Committee that returning to the gold standard wouldn't be a good idea.
Congress would need to pass a law that would charge the Fed with stabilizing the dollar to the price of gold, Powell pointed out, adding that then the Fed wouldn't be focused on its current dual mandate of full employment and stable inflation.
Also, such a move would lead to more volatility in other parts of the economy, he said.
"Every country in the world abandoned the gold standard decades ago," Powell said.
He prefaced his remarks to clarify that he's not commenting on the view of any potential nominees to the Fed.
President Trump has said he plans to nominate Judy Shelton, who has advocated returning to the gold standard.
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