The U.S. Federal Reserve has announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), an international group focused on addressing climate change through financial regulation. The Fed's decision has been met with criticism from some, who argue that it undermines efforts to mitigate climate-related financial risks.
The Fed's membership in the NGFS had been a point of contention for Republicans in Congress, who argued that it exceeded the central bank's statutory mandate. In a statement, the Fed acknowledged that the NGFS's scope had broadened to encompass issues beyond its purview.
The Fed's withdrawal from the NGFS comes amid broader efforts to insulate the central bank from political pressure. Earlier this month, Michael Barr, the Fed's vice chair for financial supervision, announced his resignation, citing opposition from large banks. Stephen Miran, a top economic adviser to President-elect Donald Trump, has criticized the Fed's consideration of climate change in bank regulation.
The Fed's decision to leave the NGFS has been met with disappointment from some experts, who argue that it sends the wrong message about the importance of addressing climate-related financial risks. Jeremy Kress, a professor at the University of Michigan's Ross business school, said that the Fed's withdrawal is "concerning" and that participating in the NGFS was "the least that the Fed can do" to address climate-related financial risks.
10 Comments
BuggaBoom
How can the Fed ignore climate risks? This is not just politics; it threatens our entire economy!
Eugene Alta
It’s alarming that the Fed is stepping away from global cooperation on climate issues. This is a global crisis!
BuggaBoom
The Fed’s decision undermines years of progress in sustainable finance. What a shameful move!
Loubianka
Withdrawing from the NGFS just shows how out of touch the Fed is with real-world issues. Climate change is a financial risk!
Katchuka
Finally, common sense prevails! The Fed should prioritize financial stability over environmental politics.
Michelangelo
I support the Fed’s decision; it’s important to stick to their statutory functions without overstepping.
Leonardo
Money is tight; we can't afford to have the Fed distracted by environmental issues.
Raphael
The Fed's responsibility includes safeguarding against all financial risks, including climate. This is negligence!
Donatello
The Fed is right to focus on its core mandate without getting pulled into political issues like climate change.
Loubianka
Great move! The Fed needs to insulate itself from political pressures hitting its independence.