Category: economic policy economy federal reserve impacts POLITICS

Lael Brainard, the only Democrat on the Fed board, was once the top contender to unseat Fed Chair Jerome H. Powell.

Federal Reserve Chair Jerome Powell walked a political tightrope yesterday between Democratic demands for faster climate action by the Fed and Republican instructions to do the opposite. As a solution, he nodded to both.

The US Federal Reserve and European Central Bank will now analyze the risk climate change poses to the financial system.

By participating more actively in climate-related research and practice, the Federal Reserve can be more effective in supporting a strong economy and a stable financial system.