Despite the Federal Reserve’s supervisory work related to the financial risks of climate change, the U.S. central bank is not a climate policymaker, says a supervisory and regulatory director at the institution.
Dr. Michael Gibson reiterated Chair Jerome Powell’s remarks earlier this year that the Fed is not crafting climate policy. However, the central bank is working to better understand climate change risks that challenge the financial system’s stability.
“Our primary focus is to evaluate whether banks operate in a safe and sound manner and manage all material risks, including climate-related financial risks,” Dr. Gibson told the House Subcommittee on Financial Institutions and Monetary Policy on July 18….