Powell Says Climate Stress Tests Likely A 'Key Tool Going Forward' [1]
"Federal Reserve Chair Jerome Powell on Tuesday said climate stress tests will “very likely” be a “key tool going forward,” a comment that may assuage progressives' concerns regarding his renomination to chief of the central bank.
“We are looking at climate stress tests. I think it's very likely that climate stress scenarios, as we like to call them, will be a key tool going forward,” Powell said during his confirmation hearing before the Senate Banking Committee.
He said such tests are “very different” from stress tests that affect capital, noting that such scenarios “are really about assuring that the large financial institutions understand all of the risks that they're taking, including the risks that may be inherent in their business model regarding climate change over time.”"