Global warming is introducing unprecedented risk into the financial system. The Fed has the power to limit that risk. Instead, Jerome Powell is sitting on his hands.
As other central banks take a more activist role, Powell wants congress and the private sector to assess growing climate risks. Elizabeth Warren calls his views “dangerous.”
Federal Reserve Chair Jerome Powell walked a political tightrope yesterday between Democratic demands for faster climate action by the Fed and Republican instructions to do the opposite. As a solution, he nodded to both.
Federal Reserve Governor Lael Brainard said the Fed is developing scenario analysis tools to model big banks' exposure to climate-related financial risks.
