The Basel Committee’s Initiatives on Climate-Related Financial Risks
Remarks on the panel "New regulatory and policy landscape for sustainable finance," 2020 IIF Annual Membership Meeting (delivered via videoconference).
Community Development: What Does it Take to Create an Economy that Works for All?
Remarks at Capital Quest: Connecting Capital to Communities (delivered via videoconference).
Climate Risk and the Fed: Preparing for an Uncertain Certainty
While the severity and scope of a changing climate remains unclear, the consensus is that it poses a significant risk to the global economy and financial system. As monetary policymakers, the Fed’s job is to navigate this uncertainty by anticipating the potential changes and understanding their implications.
Testimony on Exploring Financial Risks on Banking Posed by Climate Change
Testimony before the New York State Senate Committees on Banks, Finance, and Environmental Conservation (delivered via videoconference).
Temperature and Growth: A Panel Analysis of the United States
We document that seasonal temperatures have significant and systematic effects on the U.S. economy, both at the aggregate level and across a wide cross-section of economic sectors. This effect is particularly strong for the summer: a 1 degree F increase in the average summer temperature is associated with a reduction in the annual growth rate of state-level output of 0.15 to 0.25 percentage points. We combine our estimates with projected increases in seasonal temperatures and find that rising temperatures could reduce U.S. economic growth by up to one-third over the next century.
Emerging Issues for Risk Managers
Introductory Remarks at the GARP Global Risk Forum, Federal Reserve Bank of New York, New York City.
Freshwater Scarcity Risk Rises in the U.S. and Eighth District
Although fresh water was once considered abundant, growing scarcity issues are putting pressure on parts of the U.S.—including in the Fed’s Eighth District.
The Economics of Climate Change: A First Fed Conference
To better understand the implications of climate change for the financial sector and the broader economy, the Federal Reserve Bank of San Francisco recently hosted a conference on the economics of climate change to gather and debate the latest analyses from universities and policy institutions, nationally and abroad. It was the first Fed-sponsored conference devoted to investigating the economic and financial consequences and risks arising from climate change and potential policy responses.
Climate-Related Risks Faced by Low- and Moderate-Income Communities and Communities of Color: Survey Results
The impacts of climate change are creating new risks and exacerbating existing risks for individuals, communities, and the economy. Climate shocks and stresses disproportionately impact groups that have traditionally faced higher barriers to participating in the economy than the general population, including low-income communities, communities of color, and Tribal populations. Our team fielded a survey targeting professionals in the western United States from a broad range of sectors whose work on community development‒related issues impacts the personal and economic well-being of ...
Probability Assessments of an Ice-Free Arctic: Comparing Statistical and Climate Model Projections
The downward trend in the amount of Arctic sea ice has a wide range of environmental and economic consequences including important effects on the pace and intensity of global climate change. Based on several decades of satellite data, we provide statistical forecasts of Arctic sea ice extent during the rest of this century. The best fitting statistical model indicates that overall sea ice coverage is declining at an increasing rate. By contrast, average projections from the CMIP5 global climate models foresee a gradual slowing of Arctic sea ice loss even in scenarios with high carbon ...