Federal Reserve Withdraws from the Network of Central Banks for Greening the Financial System

Federal Reserve Withdraws from the Network of Central Banks for Greening the Financial System

On Friday, the Federal Reserve (Fed) announced its decision to withdraw from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global coalition of central banks focused on studying climate risk. The organization was founded in 2017 and has gained prominence as climate change becomes a global priority.

Justification from the Federal Reserve

“The Board has valued its collaboration with the NGFS and its members, but the scope of the NGFS’s work has progressively expanded, addressing a broader range of concerns beyond the Board’s legal remit,” the Fed stated in an official release.

Political Pressure on the Fed

In recent years, the Federal Reserve has faced increasing pressure from Republican lawmakers. These politicians have expressed concerns that climate-related issues have disproportionately influenced financial regulation, and have noted that the central bank’s actions have become increasingly politicized.


Pam Bondi 's Nomination for Attorney General A Controversial Choice

Pam Bondi ‘s Nomination for Attorney General A Controversial Choice

Pam Bondi, a staunch supporter of Donald Trump, has been a central figure in his legal battles. From backing Trump during his first impeachment…


Expansion of NGFS’s Scope

The broadening of the NGFS’s focus has been a key factor in the Fed’s decision. Originally, the NGFS focused on climate risk within the global financial system, but over time it has tackled other issues, deviating from its original mission.

Reactions from NGFS Members

The Fed’s withdrawal from the NGFS has sparked reactions within the coalition. Some members suggest that the move could shift the dynamics of climate-related initiatives in global financial regulation.

Implications for Global Financial Regulation

This withdrawal by the Fed could have significant implications for global financial regulation, especially regarding the integration of climate risks into monetary and financial policies.

Future of Sustainability Initiatives at the Fed

Despite its withdrawal from the NGFS, the Federal Reserve remains committed to addressing climate-related financial risks. It is expected to continue assessing how these factors impact financial stability and the economy at large.

Bessent Warns of Economic Crisis if Tax Cuts Aren’t Extended

Sales Support