Federal Reserve

Republican senators condemn the Federal Reserve’s climate stress tests as politically motivated, demanding that chairman Jerome Powell “reign in the Fed’s regional banks”.

In the wake of the Silicon Valley Bank collapse, the Fed has said a precautionary approach towards risk is needed. Will this be applied to climate-related risk, ask Anne Perrault and David Arkush of Public Citizen.

Christopher Waller said he believes that the “risks posed by climate change are not sufficiently unique or material to merit special treatment”.

Politicians hope the bill will require the Federal Reserve to bring in policies restricting finance for fossil fuel and deforestation activities.

The collapse of the tech start-up bank has exposed cracks in the system which will only widen as the climate crisis unfolds, says Yevgeny Shrago of Public Citizen.

Much discussed but not yet in force, climate-adjusted capital requirements are viewed by many as a key element in the bank regulation toolkit to address climate-related risks.

Comments on the Fed’s proposed climate guidance run the gamut between calling for more action from the central bank to demanding that it stop entirely.

The Fed’s inaugural climate scenario analysis exercise and an ECB deadline on banks’ management of climate risks are among the key milestones in green central banking in the year ahead.

The Fed has released the scenarios that the largest US banks will have to consider to determine their resilience to climate change.

In a new report, Positive Money US argues that fossil fuels are a major driver of price instability and provides policy recommendations.