Fed Governor Lael Brainard says the central bank needs to guard against climate change

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Fed Governor Lael Brainard says the central bank needs to guard against climate change
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The issue could have impact on determining the proper level of interest rates and cause systemic financial damage, the Fed governor said.

Fed Governor Lael Brainard said the central bank needs to take into consideration climate change when formulating future policy.

US Federal Reserve Governor Lael Brainard attends a "Fed Listens" event at the Federal Reserve headquarters in Washington, DC, on October 4, 2019.

Among the considerations for the Fed would be whether the impact of climate change-related events such as hurricanes, wildfires and floods are temporary or long-lasting. Such assessments could impact where the Fed views the long-run "neutral" interest rate that is neither stimulative nor restrictive to growth.

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