The Federal Reserve announced its exit from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) due to its broadened responsibilities that fall outside the Fed’s mandate. Formed in 2017, the NGFS aims to help central banks integrate climate risks into their financial oversight.
Chair Jerome Powell emphasized that the Federal Reserve should not dictate climate policies, asserting that this responsibility lies with Congress. The Fed’s exit aligns with the upcoming inauguration of President-elect Donald Trump, who has criticized governmental climate initiatives.
Leave a Reply