The Federal Reserve Takes Climate Change Seriously

Why the distinction? I see a pair explanations. For one, local weather change is a slow-moving secular pattern, not like the cyclical developments in provide and demand that dominate the near-term financial outlook and are therefore most related for financial coverage, which tends to have a horizon of some years or much less. So even when one takes it significantly, because the Fed does, it’s not clear how that may translate into, say, changes to the Fed’s asset buy program or the trajectory for short-term rates of interest. | The Federal Reserve Takes Local weather Change Significantly


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