The Federal Reserve requires to execute steps to sufficiently resolve climate-related monetary danger as its existing efforts “fall short in responding to the current climate crisis,” a group of 11 Democratic legislators stated today. In a letter to Fed Chairman Jerome Powell, the legislators stated climate-related weather condition catastrophes cost the U.S. economy more than $617 billion in between 2018 and 2022, however they slammed the Fed for presumably being far behind other G20 reserve banks in embracing eco-friendly policies and efforts. Signatories consist of Sens. Ed Markey (D-Mass.), Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), in addition to House members such as Rep. Ayanna Pressley (D-Mass.).
“The Federal Reserve has acknowledged that climate change poses an emerging risk to the safety and soundness of financial institutions and the financial stability of the United States,” the legislators stated. “That is why we urge the Federal Reserve to use its existing authority to oversee bank safety and mitigate risks to financial stability, and require financial institutions to submit and execute plans to align their activities with science-based climate targets, including reducing financed emissions.”
In a speech previously this year, Powell stated the Fed has “narrow, but important, responsibilities” relating to climate-related monetary dangers, however he pressed back versus require the reserve bank to end up being a wider environment regulator. “Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public’s will as expressed through elections,” he stated.