Federal Reserve Withdraws from Global Climate Coalition
18 hours ago Charles Rotter
In recent weeks, the climate policy landscape has shifted significantly, with institutions, governments, and corporations beginning to step back from the ambitious but economically questionable climate commitments they made over the last decade. Two major developments underscore this retreat: the U.S. Federal Reserve’s exit from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) and BlackRock’s withdrawal from the Net Zero Asset Managers initiative (NZAM) and it’s subsequent suspension of activities. These high-profile decisions, along with similar moves globally, suggest growing recognition of the economic damage wrought by costly, ineffective, and overreaching climate policies.
The Federal Reserve: Not a Climate Policeman
In a move that has sent shockwaves through climate advocacy circles, the U.S. Federal Reserve announced its withdrawal from the NGFS—a coalition of central banks established in 2017 to address climate-related risks in financial systems. Citing its limited statutory mandate, the Fed made clear that it was not responsible for shaping climate policy. Chair Jerome Powell has repeatedly emphasized this point, stating that climate matters belong to Congress, not the central bank.
The NGFS, claimed lofty goals of integrating climate risks into monetary policy, and has grown increasingly politicized. Its shift toward broader mandates—essentially promoting green agendas over sound economic principles—clashes with the Fed’s responsibility to maintain monetary stability. The exit comes amidst broader U.S. skepticism of climate-focused regulations, particularly in the financial sector, where their potential to disrupt industries and inflate costs is well-documented.
https://wattsupwiththat.com/2025/01/19/federal-reserve-withdraws-from-global-climate-coalition/
