“With financial stability, the issue really is ‘Can something from climate change rise to the level that would threaten the stability of the entire financial system?’”Īsked at his hearing by Sen.
“It's also to look after financial stability,” he said. “Our role on climate change is a limited one, but it's an important one, and it is to assure that the banking institutions that we regulate understand their risks and can manage them,” Powell said. And during his confirmation hearing in January, Powell said the bank considers climate change a possible threat to instability. Last year, it created two internal committees on climate risk to measure banks’ exposure to climate impacts. The Fed in 2020 joined the Network for Greening the Financial System, a group of more than 80 central banks and regulators. Sherrod Brown, D-Ohio, the Banking Committee chairman, Barrasso said he opposed the pick. Toomey, R-Pa., the top Republican on the Senate Banking Committee, have also been critical of Raskin, saying her opinions stray from the economic mainstream and that the Fed should focus on its dual mandate of maximizing employment and stabilizing prices. Kevin Cramer, R-N.D., said he hopes the Senate blocks Raskin, calling her climate stance “radical.” She wrote: “The Fed is ignoring clear warning signs about the economic repercussions of the impending climate crisis by taking action that will lead to increases in greenhouse gas emissions at a time when even in the short term, fossil fuels are a terrible investment.” In the piece, Raskin, who has also been a Fed governor and the top financial regulator in Maryland, quarreled with the central bank’s decision to issue pandemic-relief loans to fossil fuel companies that were in “deep financial trouble long before the pandemic began.” Jamie Raskin, D-Md., on her public climate statements, in particular through a column The New York Times published in May 2020 called “Why Is The Fed Spending So Much Money on a Dying Industry?” Republicans have focused their criticism of Raskin, the wife of Rep. If Biden gets all his picks through, the majority of the board seats would be filled by women. Both are Black and would usher in a new era of diversity among the Fed’s board of governors. “They will continue the important work of steering us on a path to a strong, sustainable recovery, while making sure that price increases do not become entrenched over the long term,” Biden said.Ĭook is an economics professor at Michigan State University, and Jefferson is an economist and administrator at Davidson College.
When Biden announced his choices to fill the three empty seats on the seven-person Fed board, he said Raskin, Cook and Jefferson were qualified and would help navigate the country through choppy economic waters. central bank, including Federal Reserve Chair Jerome Powell and Lael Brainard, the bank's vice chair, have grown increasingly wary of how a warming world threatens the global economy. The fight over Raskin’s nomination comes as central banks worldwide have expanded their work on the financial risks posed by climate change and governors at the U.S.
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