Washington, DC — Today, Jerome Powell at his confirmation hearing for his second term as Chair of the Federal Reserve, responded to a question on the emerging risk of climate change to financial institutions and the use of climate stress tests for banks. Powell responded that climate stress tests are a likely tool going forward. Senate Banking Chair Sherrod Brown (D-Ohio) asked if Powell would make climate stress tests a top priority, to which he said the Federal Reserve would.
Brooke Harper, 350 U.S. Campaign Manager made the following statement on the hearing:
“Jerome Powell’s stated commitment to prioritizing climate stress tests in the Federal Reserve’s financial processes is a major victory for our movement. Our campaign has consistently put pressure on the Federal Reserve and Powell to account for climate risk, and this commitment made during today’s hearing is a testament to our organizing. This is just the beginning. We will hold Powell to his promises and we will continue to push the Federal Reserve to divest from fossil fuel companies that they have previously bailed out to the tune of hundreds of millions of dollars.
“We also look ahead to Thursday’s nomination hearing of Lael Brainard for Vice-Chair of the Federal Reserve. While we were disappointed when President Biden renominated Jerome Powell to lead the Federal Reserve, we praised his decision to nominate Lael Brainard, an experienced leader who understands the importance of a just transition away from fossil fuels. We are hopeful that Brainard’s confirmation, along with Powell’s commitment, will impact significant shifts to the Federal Reserve and prioritize economic regulation with the climate crisis in mind.”
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For more on the Fossil Free Federal Reserve campaign, explore: linktr.ee/fossilfreefed
Press Contact: Thanu Yakupitiyage, [email protected].