Randal Quarles on Inflation, Balance Sheet Reduction, Financial Stability, and the Future of the Fed
Macro Musings with David Beckworth
00:00
Should the Fed Be Looking at Climate Change?
i'm a little less convinced that the fed should be delving into this area than many believe it should be. I believe climate change is the real issue, and i think it should be addressed by congress empowering agencies to deal with it. The fete itself doesn't have a legal mandate per se to deal with us unless you interpret it under financial stability or some other part of its in mandate. And i would take the more general approach that if climate change is a threat to the banking system then why not take an approach where you just require more capitalor whatever is needed to withstand that shock?
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