Just because you can do something doesn’t mean you should. Now if only central bankers would learn this lesson.
“The Federal Reserve has been making important progress in laying the groundwork to incorporate climate considerations where they are material and relevant to our statutory responsibilities, today and in the future.”
But that doesn’t address the issue. If the Fed governors get to decide when such things are “material and relevant,” then she could just as easily of said that they will address it whenever they feel like it.
Brainard pointed out that global warming can threaten financial stability through changing prices due to more wildfires and hurricanes, but few people link any individual storm to climate change.
Still, she went on, discussing how the bank will beat on, er, require, companies to bend to their will:
“Over time, it will be important to develop a framework for evaluating how banks are taking into account climate-related risk in their modeling and management of credit, market, liquidity, and operational risks.”
If corporate managers and executives take issue with the Fed’s view of climate change, well, too bad. They’re the Fed and they answer to no one.