Morning Brief: Powell suggests climate ‘stress tests’ for banks

Federal Reserve Chairman Jerome Powell is suggesting the central bank might require so-called “stress tests” to gauge banks’ vulnerability to physical and transition risks from climate change, telling senators that similar exercises European regulators are conducting have proven valuable. The climate stress tests in Europe are “proving to be a very profitable exercise both for the financial institutions and for regulators,” he testified during a July 15 hearing of the Senate Banking Committee, according to Reuters . The Fed...