In First for Fed, U.S. Central Bank says Climate Poses Stability Risks
The Fed published its biannual financial stability report and warned about the potential for abrupt changes in asset values in response to a warming planet-
"Such abrupt price changes from climate-related disasters could also create difficult-to-predict knock-on effects through financial markets, particularly because not enough is understood, or disclosed, about the true extent of exposures to climate risks."
“Increased transparency through improved measurement and more standardized disclosures will be crucial, it is vitally important to move from the recognition that climate change poses significant financial stability risks to the stage where the quantitative implications of those risks are appropriately assessed and addressed.” said Fed Governor Lael Brainard.