Fed's Lael Brainard and Mary Davy speak at 1st climate change conference hosted by the Fed
Lael Brainard is trying to square Fed policy with climate change. She says:
- Fed will increasingly need to take climate change into account when setting policy
- climate policy will affect prices, employment, output
- profound climate effects on the economy, financials
- climate change policy uncertainty may holdback investment, economic activity
- Fed will need to assess financial system for climate vulnerabilities
- Fed is in discussion on participation in climate focus global central bankers network
Fed's Mary Davy adds:
- understanding climate change risk is essential to achieving Fed's mission
- climate change is an economic issue we cannot ignore
Needless to say, this is a new(er) vulnerability, but economic activity can be impacted by a number of things including climate change. I don't think that the Fed necessarily has there finger on the pulse of what the impact will be, however, if there is risk and vulnerabilities, it is important to try and understand its implications.
