Fed Forming Committee to Prepare for Climate Change Dangers
- New panel to identify risks to financial system, Brainard says
- Getting ahead of ‘tipping points’ a challenge, she says
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The Federal Reserve plans to make climate change a major part of its Wall Street oversight by creating a new committee that will identify and respond to dangers a warming planet poses to the financial system.
The Financial Stability Climate Committee will be “charged with developing and implementing a program to assess and address climate-related risks to financial stability,” Fed Governor Lael Brainard said in a Tuesday speech. The central bank is investing in research and modeling to get a handle on how climate events can threaten firms and the broader economy, something she conceded might be challenging.