Senator Brown Makes Pitch for Climate Action by the Fed
Senator Brown Makes Pitch for Climate Action by the Fed
(Bloomberg) -- Senate Banking Chairman Sherrod Brown said the Federal Reserve should act to ensure financial institutions are taking into account climate change risks, as he defended President Joe Biden’s three new picks for the Fed board, including vice chair of supervision nominee Sarah Bloom Raskin.
“Should banks not assess risk? When they make loans to people, for homeowners and businesses in hurricane-prone lowlands on the coast? Of course they should,” the Ohio Democrat said Thursday on Bloomberg Television’s “Balance of Power with David Westin” when asked about potential opposition to Raskin’s views on regulating climate change risks.
He also said banks should assess climate-related financial risks when they’re making long-term loans to energy and fossil fuel companies, for example.
“We need to assess that. That should be part of this,” he added.
Brown said he’s spoken to Senator Pat Toomey, the top Republican on the banking panel who has criticized Raskin’s advocacy for the Fed and other regulators to act to counter the financial risks of climate change.
“I know he’s concerned,” Brown said.
But Brown added that Federal Reserve Chairman Jerome Powell -- who he expects the full Senate to confirm to another term with broad bipartisan support in early February -- has also talked about the importance of the Fed’s role in assessing climate risks.
“It will be mostly her job, but ultimately it’s Powell’s responsibility on anything that this seven-member board does,” he said.
Brown said also that he is “virtually certain” that Fed vice chair nominee Lael Brainard will be confirmed as well, and assumes all five of Biden’s nominations will get backing on the Senate floor. He has already spoken to Senate Majority Leader Chuck Schumer about the importance of getting all of the positions filled as soon as possible.
Brown said he is planning a joint hearing in the first week of February with Raskin and Biden’s two other Fed governor picks, Lisa Cook and Philip Jefferson.
“I think they all understand the importance of camaraderie, but the importance of being bold too on a Federal Reserve that’s sometimes been a little bit behind the curve,” Brown said.
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