Ignorer la navigation
Climate Change and the Federal Reserve
Report

Climate Change and the Federal Reserve

FRBSF, 2019

résumé audio créé automatiquement
résumé audio créé automatiquement

Editorial Rating

8

Qualities

  • Overview
  • Background
  • Hot Topic

Recommendation

At first glance, it may be hard to connect the dots between climate change and Federal Reserve policy. Yet forecasts say that increasing environmental deterioration will have a significant impact on the US economy. In this incisive and accessible synopsis intended for financial professionals and executives, economist Glenn D. Rudebusch lays out the scope of the climate-related risks – including credit exposures, infrastructure damage and supply chain disruptions – that would challenge the Fed’s pursuit of macroeconomic stability.

Take-Aways

  • The environmental impacts of climate change are bound to make their eventual mark on US Federal Reserve policy.
  • Researchers forecast that climate change will have reduced US output by one-half of one percentage point by 2100. 
  • On a macroeconomic level, both direct climate-related losses and a volatile changeover to sustainable energy sources could produce wide-ranging financial risks. 

About the Author

Glenn D. Rudebusch is an executive vice president at the Federal Reserve Bank of San Francisco.