Federal Chair Warns Climate Poses Obstacles For Global Economy

Jerome Powell also said the issue is "not something [the Fed] directly considers in setting monetary policy."

Federal Reserve Chair Jerome Powell says the central bank can help assess risks to banks from climate change but that addressing the broader issue is up to private companies and elected officials, underlining that U.S. central bankers are not climate policy makers. Powell said at an online conference Friday that "there is no doubt that climate change poses profound challenges" for the global economy, banks and financial institutions. But, he added, meeting that challenge is up to the private sector and elected officials. The Fed can play a role by gathering data and quantifying the risk to banks, under its mandates to supervise financial institutions and support the stability of the financial system.