The Fed Has Climate Responsibilities, Like It Or Not

The U.S. Federal Reserve is not “and will not be, a ‘climate policy maker,’” Federal Reserve Chair Jerome Powell told an audience in Stockholm earlier this month. It’s not clear who’s urging the agency to make climate policy. What is clear—even Powell agrees in principle—is that the Federal Reserve is responsible for addressing climate-related risks to banking and the financial system. On that score, it’s falling far short.