Federal Reserve Governor Christopher Waller on Thursday cast doubt on the need for special focus on how banks are preparing for climate change risks.
While acknowledging the risks that climate change poses, he said catastrophic events like hurricanes and floods don’t generally reverberate across the U.S. economy. Thus, he said that conducting special tests for how banks are preparing for such events probably shouldn’t fall under the Fed’s purview.
“I don’t see a need for special treatment for climate-related risks in our financial stability monitoring and policies,” Waller said in the prepared remarks for a speech in Madrid. “Based on what I’ve seen so far, I believe that placing an outsized focus on climate-related risks is not needed, and the Federal Reserve should focus on more near-term and material risks in keeping with our mandate.”
No comments:
Post a Comment