I want to thank the Institute of International Finance for inviting me to join this discussion. Let me start by noting that these are my own views and do not necessarily reflect those of the Federal Reserve Board or the Federal Open Market Committee.1 Climate change is already imposing substantial economic costs and is projected to have a profound effect on the economy at home and abroad.2 Future financial and economic impacts will depend on the frequency and severity of climate-related events and on the nature and the speed at which countries around the world transition to a greener economy.3 Climate change and the ... (full story)

Uncertainty about the impact climate change may have on the financial system should not prevent financial firms and their supervisors from moving now to prepare for the shocks to come, a key Federal Reserve policymaker said on Thursday. Fed Governor Lael Brainard, in remarks to an Institute of International Finance forum on the move to a low-carbon economy, said financial firms faced risks not just from weather-related disasters, but also potentially fast changes in asset prices if and when government policies change. “While the scientific evidence for climate change is unequivocal, estimates of the magnitude of ... (full story)