CLEVELAND–While the Trump administration has been working to scuttle investments in anything related to climate change, Federal Reserve Governor Michael Barr said last week he believes the Fed needs to ensure that banks are measuring and managing climate-related risk just as they do other risks.
“I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we pay attention to it now,” Barr said in response to a question posed during a community development conference at the Cleveland Fed.
“We don’t make climate policy. We don’t want to make climate policy,” Barr continued. “But our role is to make sure that the institutions we supervise are operating in a safe and sound way. And that means paying attention to how they’re measuring and managing climate-related risks.”
