Fed Nominees Outline Relatively Narrow Approach To Climate Risk Policy

Top Federal Reserve officials are underscoring that their policies to assess climate-related risk in the financial sector are not likely to lead to direct capital requirements for major banks to shift to lower-carbon assets, as Hill Republicans warn the central bank against overstepping its mandate and environmentalists press for a tougher approach. The dynamic played out during Senate banking committee hearings this week, during which lawmakers reviewed President Joe Biden’s nomination of Fed Chairman Jerome Powell for another term, as...