U.S. Federal Reserve Exits Climate Risk Network

The U.S. Federal Reserve has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), citing the group's broadened focus as outside its legal mandate. This decision precedes President-elect Trump's inauguration, who has criticized prescriptive climate policies.

The U.S. Federal Reserve announced its withdrawal from a key global network of central banks and regulators focused on managing climate-related financial risks. Citing a shift beyond its legal mandate, the Fed exited the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).

Established in 2017, NGFS assists central banks and regulators in addressing climate change impacts on monetary policy and financial system oversight. The Fed joined in 2020, but its exit comes just before President-elect Donald Trump, a critic of regulatory climate policies, is set to assume office.

Despite some integration of climate considerations in its analyses, Fed Chair Jerome Powell emphasizes that climate policy is a congressional matter, not a federal reserve responsibility.

(With inputs from agencies.)