Fed has ‘important but quite limited’ authority to police climate change risk, says nominee Barr

2022.05.19 18:26

FILE PHOTO: The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts/File Photo

WASHINGTON (Reuters) – The Federal Reserve has “important but quite limited” authorities to police financial risks emanating from climate change, according to Michael Barr, President Biden’s nominee to lead to the central bank’s regulatory work.

Testifying before the U.S. Senate, Barr said the Fed’s role on climage change is limited to assessing any risks banks might face, and should not be in the business of telling firms where they should or should not lend.

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