Good news, since the US central bank really shouldn’t be focused on cult beliefs
Trump’s Pick to Lead the Federal Reserve Could Steer Bank Away From Climate Change
The fight over control of the Federal Reserve has revolved around interest rates and inflation, but President Donald Trump’s choice to be the bank’s next chair could sway how the agency assesses climate risks, too.
In a speech last year to a group of financial leaders that was broadly critical of the Fed, Kevin Warsh called climate change a “politically charged” issue that the bank would do better to avoid.
“Central bankers and bandwagons should be strangers,” said Warsh, who has previously served on the Fed’s board and is currently a visiting fellow at Stanford University’s Hoover Institution. “It would be better for the Fed’s long-term success to focus on the time-honored and the enduring, rather than the fashionable and the fleeting. I observe the modern central bank to be a bit too willing to traffic in contraband.”
Exactly, they shouldn’t get involved with bandwagons and fads and cults.
Many activists and some Democrats have criticized the Fed for not doing more to address climate change. The European Central Bank, in particular, has taken more steps to try to limit those risks.
In 2023, the Fed and two other agencies issued guidelines for financial institutions on assessing their own climate risks. In October, the agencies withdrew the guidelines, saying they were not necessary because existing rules required banks to examine “a range of risks, including emerging risks.”
How about minding your own cult business?
from the piece…
Derek Lemoine, a professor of economics at the University of Arizona’s Eller College of Management, said this type of research should be a core piece of the Fed’s work.
“Its mandate is to maintain price stability and to maintain employment, and climate change is clearly relevant to both of those things,” Lemoine said. “So the Fed would be, in my view, violating its mandate to not at least study those things. Whether or not the study shows that it affects what the Fed does is another question.”
Derek Lemoine, a professor of economics at the University of Arizona’s Eller College of Management, said this type of research should be a core piece of the Fed’s work.
“Its mandate is to maintain price stability and to maintain employment, and climate change is clearly relevant to both of those things,” Lemoine said. “So the Fed would be, in my view, violating its mandate to not at least study those things. Whether or not the study shows that it affects what the Fed does is another question.”