logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

Top White House adviser: Climate policies ‘number one’ factor in Fed chair pick

A top economic adviser to President Joe Biden says climate-related policies are a major priority as the White House considers who it would like to serve in the top job at the Federal Reserve.

Heather Boushey, a member of the White House’s Council of Economic Advisers, said the Biden administration broadly sees a link between economic policies and risks that come from climate change.

“As we’re thinking about management of the economy, as we’re thinking about the financial system, really making sure we are taking into account these physical and transition costs of climate change, that’s an urgent and number one priority,” Boushey told Yahoo Finance in an interview on Thursday.

Boushey did not say if she supports current Fed Governor Lael Brainard or incumbent Fed Chairman Jerome Powell for the job, the two rumored final candidates. But Brainard has been the one inside the central bank spearheading efforts to beef up surveillance of climate-related financial risks.

Powell has supported those measures but has also caveated the Fed’s work on climate risk.

“We are not, and we do not seek to be, climate policymakers,” Powell said at a climate change conference in June. He added later that “[the Fed] should avoid trying to fill in public policy where governments haven’t done so yet.”

On Friday morning, Sens. Sheldon Whitehouse of Rhode Island and Jeff Merkley of Oregon said they would not support a Powell renomination, arguing that he has not been aggressive enough on climate matters.

“President Biden must appoint a Fed chair who will ensure the Fed is fulfilling its mandate to safeguard our financial system and shares the administration’s view that fighting climate change is the responsibility of every policymaker. That person is not Jerome Powell,” the two Democrats said in a statement.

Other Democrats have also voiced opposition to Powell’s renomination, perhaps tilting the scales in favor of a Brainard nomination. Last month, Sen. Elizabeth Warren of Massachusetts said she would not support Powell due to his record on bank regulation, arguing that regulatory rollbacks to the post-financial crisis law known as Dodd-Frank make Powell a “dangerous man.”

Sen. Tina Smith (D-Minn.) told Yahoo Finance that she has met with both Powell and Brainard in the last couple of months and said her focus is also on climate.

“I’m interested in a Federal Reserve chair who is also going to be looking at what we need to do to minimize some of the systemic risks in our economy. For me, one of the biggest challenges that we have is the risk around climate change,” Smith told Yahoo Finance Thursday.

Climate mandate?

The spotlight on climate policies at the Federal Reserve raises questions about how the central bank should be assessing risk within the bounds of its Congressional mandates.

The Federal Reserve Act tasks the central bank with the following goals: maximum employment, stable prices, and moderate long-term interest rates.

The Fed’s most well-known tools used to meet those goals are its monetary policies (i.e. levering short-term interest rates). But another tool: monitoring financial stability risks, which works in tandem with the Fed’s power to regulate and supervise banks.

Both Brainard and Powell recognize that extreme weather could incur sudden and large losses on the banking industry. Another risk concerns transitioning to greener energy sources, which could disrupt existing fossil fuel industries and create financial volatility.

Republicans like Sen. Pat Toomey of Pennsylvania have argued that paying mind to climate marks a “sudden departure” from the Fed’s mandate.

But Brainard has said that supervisors “have a responsibility to ensure that financial institutions are resilient to all material risks—including those related to climate change — both currently and into the future.”

Another top economic policy adviser to the White House, Bharat Ramamurti, told Yahoo Finance he agrees that climate is well within the Fed’s mandate.

“It is completely within [regulators’] normal, standard statutory mission to examine and protect the safety and soundness of the financial system. It’s just that climate change has emerged as a threat to potential safety and soundness and regulators in our view should take that into consideration,” said Ramamurti, the deputy director of the National Economic Council.

 

Related posts

December 27, 2022

Media stocks lost over $500 billion in value this year — here’s what happens next


Read more

Categories

  • Business
  • Content
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • Bitcoin closes out best January since 2013
  • More oil is coming
  • Samsung to keep up chip investment, undeterred by 8-year-low profit
  • TikTok faces a daunting calendar ahead in Washington
  • Think Chevron’s Profit Was Obscene? 5 Companies Will Blow It Away

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company