Climate Change Cited For First Time as Threat to U.S. Economy in Congressional Report

 Zoe Strozewski 10 hrs agoLike

Climate change was highlighted as an emerging threat to the U.S. economy for the first time in the annual report to Congress by the country’s top financial regulators. The Financial Stability Oversight Council cited several ways in which the issue could impact the economy, including possible loan losses after natural disasters like floods and fires that have become more and more frequent.

“Increased frequency and severity of acute physical risk events and longer-term chronic phenomena associated with climate change are expected to lead to increased economic and financial costs,” the report said.

For Jerome Powell, the Federal Reserve chair and a chairman for the Financial Stability Oversight Council, the inclusion of climate change in the council's annual report may be at least a partial win for critics who say that he doesn’t place climate change high enough on his priority list. Powell testifies during a hearing before House Financial Services Committee on Capitol Hill December 1, 2021 in Washington, DC. Alex Wong/Getty Images© Alex Wong/Getty Images For Jerome Powell, the Federal Reserve chair and a chairman for the Financial Stability Oversight Council, the inclusion of climate change in the council’s annual report may be at least a partial win for critics who say that he doesn’t place climate change high enough on his priority list. Powell testifies during a hearing before House Financial Services Committee on Capitol Hill December 1, 2021 in Washington, DC. Alex Wong/Getty ImagesThe council gave several recommendations to combat the climate-related financial risks, including making strides to acquire more data that helps them assess the perils and creating an inter-agency group to monitor the threats.

This is the first annual report of Joe Biden’s presidency from the governmental organization charged with assessing risks to the financial system and detailing them to Congress. Biden’s administration has established climate change as a top priority since he took office, a stark contrast to his predecessor’s decision to withdraw the U.S. from the Paris climate agreement.

The council is also chaired by Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen, and the heads of other regulatory agencies including the Securities and Exchange Commission, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

The council was created by Congress in 2010 to address gaps in coordination among financial regulators that were exposed by the 2008 financial crisis.

Yellen, speaking before the panel approved the report Friday, said the turmoil that enveloped financial markets after COVID-19 hit in March 2020 had been dealt with quickly by the Federal Reserve and other agencies. She said the response showed that the “financial system is far more shock resistant” than it was when the 2008 crisis struck.

While there have been improvements, Yellen said the council still found risks to financial stability were elevated compared with the period before the pandemic.

Another emerging threat listed in the council report is cybersecurity. The council argued that more needs to be done to protect banks and other financial institutions from ransomware, malware attacks and data breaches.

The report also noted just how much remains unknown right now. Among the concerns were the now rapid-spreading omicron variant of the virus, a recent but persistent spike in inflation, and concerns that financial turmoil in China could adversely affect the U.S. and global economy.

“Global economic activity in the COVID-19 era has been unusually volatile, with periods of economic shutdowns followed by rapid growth amid reopening,” the report said. AdChoices





PhotosThe most important concept cars ever created AutocarFitch downgrades Sri Lanka as default fears mount AFPPhotosCars with the biggest engines ever Motoring ResearchIs the NAB (ASX:NAB) share price great value? Goldman thinks it is The Motley Fool

Moderna Delays Application for Shot Patent Disputed By NIH BloombergJurors in Elizabeth Holmes criminal trial are handed case and begin… CNBCU.S. COVID-19 vaccine mandate revived, Supreme Court…By Tom Hals and Mike Scarcella (Reuters) -A U.S. appeals court on Friday reinstated a nationwide vaccine-or-testing COVID-19 mandate for large businesses, which covers 80 million American workers, prompting opponents to rush to the Supreme Court to ask it to intervene. The ruling by the 6th U.S. Circuit Court of Appeals in Cincinnati lifted a Novem… ReutersMillennial Millionaires Hold Most of Their Wealth in Crypto, and… GOBankingRates

Still on the hunt for the perfect gift? Here are some last-minute ideas The VergeClothes sales back to pre-Covid levels in November BBC NewsChild tax credit woes? Why parents are facing delays, missing payments, wrong amounts CNETFed official sees first US rate hike in spring 2022With inflation expected to remain high for some time, the US central bank is likely to raise interest rates soon after it ends its bond-buying program in March, a Federal Reserve board member said Friday. Asked to be more precise about the timing, Waller said, “We’d like to put March on the table as a possible date to start lifting (interest rates) if we need to.” AFP4 Stocks to Earn Monthly Passive Income of $300 in 2022With rising inflation, managing expenses is getting tougher, creating the need for passive income. Here’s how to earn $300/month in 2022. The post 4 Stocks to Earn Monthly Passive Income of $300 in 2022 appeared first on The Motley Fool Canada. The Motley FoolCerner Shares Soar on Report Oracle Is in Takeover Talks BloombergFederal appeals court reinstates Biden administration’s… CNBCMercosur meeting ends without deal on import tariff cuts ReutersJeff Bezos Lost His Status as the World’s Richest but Still Had a Stellar Year GOBankingRatesChipotle hides the assembly line, testing new online-order-only… The VergeHSBC fined £64m for anti-money laundering failings BBC NewsStocks mostly drop as traders mull central bank moves AFPWhat’s the outlook for the Coles (ASX:COL) share price and… The Motley FoolSlim Chance U.S. Stocks Will Rack Up Another Year of Gains BloombergCramer’s week ahead: Time to put a small amount of cash to work CNBCIMF board forms group to review data integrity after World Bank scandalBy David Lawder WASHINGTON (Reuters) – The International Monetary Fund’s Executive Board on Friday said it has formed a steering group to lead a review to improve institutional safeguards on data and governance after clearing IMF Managing Director Kristalina Georgieva of wrongdoing in a World Bank data-rigging scandal. The IMF board said in a sta… ReutersThe 7 Best Places To Buy Discount Groceries GOBankingRatesH&R Block is suing Block, formerly Square, over its new name The VergeEx McDonald’s boss to repay $105m after lawsuit BBC News

US judge overturns Purdue Pharma opioid settlementA US judge on Thursday struck down the Purdue Pharma bankruptcy plan because it provided some immunity for the owners of the company in exchange for a $4.5 billion payout to victims of the opioid crisis. Under the settlement Purdue Pharma, the manufacturer of OxyContin, would be dissolved and the Sackler families that founded and profited from the company would have to pay $4.5 billion. AFPHere’s why the Brickworks (ASX:BKW) share price has lots of potential The Motley FoolApple and Microsoft Stocks Suffer Their Worst Week in Months BloombergWhat we are watching next week, including Nike earnings CNBCBidding race on for Vertical Aerospace eVTOL plant as shares debut ReutersCFPB Launches Probe To Review Buy Now, Pay Later Practices GOBankingRatesGoogle reportedly under investigation for how it treats Black female… The VergeCanadian Stock Market: 3 Investing Mistakes of 2021 The Motley Fool

Pinterest Fires Back at Influencer Claiming She Helped Create the Site BloombergGM president hints at strategy disagreement with departed Cruise… CNBCFed policymakers make case for rate hikes after end of bond-buying taper ReutersSocial Security Won’t Cover Your Retirement? How To Prepare Now GOBankingRatesFedEx receives its first electric delivery vans from GM’s BrightDrop The VergeWhy Pfizer and Johnson & Johnson Fell on Friday The Motley FoolSummers Says Fed Still ‘Transitory’ on Inflation, Under SurfaceFormer Treasury Secretary Lawrence Summers said the Federal Reserve’s pivot this week toward addressing elevated inflation more quickly is insufficient, and that policy makers are acting like they still believe that price gains will slow substantially on their own. Bloomberg

Why Harley-Davidson’s EV motorcycle LiveWire is getting its own stock CNBCAMC soars as CEO celebrates ‘Spider-Man’; GameStop also rallies(Reuters) – Shares of AMC Entertainment and GameStop Corp roared higher on Friday, as investors pounced on the beaten-down meme stocks after a weeks-long decline in their prices. The shares of movie theater operator AMC were last up 23.1% at $30.09 and on track for their biggest one-day percentage gain since July. Some market participants tied th… ReutersCars, Electricity and the Other Areas Hit Hardest by Inflation in 2021 GOBankingRatesFTC opens antitrust probe into Meta’s purchase of VR fitness app… The VergeWhy Shares of Wells Fargo Fell Today The Motley FoolSequoia Capital Finally Gets ‘Red-Pilled’ on Crypto Investing BloombergAsana CEO Moskovitz is buying the dip in his software company’s… CNBCBoeing suspends vaccine mandate for U.S. employees ReutersFeedback


Fill in your details below or click an icon to log in: logotips

You are commenting using your account. Log Out /  Mainīt )

Google photo

You are commenting using your Google account. Log Out /  Mainīt )

Twitter picture

You are commenting using your Twitter account. Log Out /  Mainīt )

Facebook photo

You are commenting using your Facebook account. Log Out /  Mainīt )

Connecting to %s

%d bloggers like this: