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Bill Dudley

The Federal Reserve Takes Climate Change Seriously

Activists need to recognize the political constraints the central bank faces.

He gets it.

He gets it.

Photographer: Win McNamee/Getty Images

Activists have been preparing to send a message at this week’s (now virtual) annual gathering of central bankers in Jackson Hole, Wyoming: U.S. Federal Reserve Chair Jay Powell, arguably the world’s most powerful financial official, isn’t doing enough to address the threat of climate change — and, for this reason, shouldn’t be reappointed to a second term.

I disagree. Powell’s actions demonstrate that he takes the phenomenon seriously. He’s doing the best he can, given the constraints he faces.