Federal Reserve Withdraws from NGFS Before Trump's Inauguration, Citing Statutory Mandate

Jan 17, 2025, 08:16 PM

The Federal Reserve announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global coalition focused on integrating climate change risks into financial regulation and monetary policy. The Fed cited the NGFS's broadened scope as exceeding its statutory mandate. The decision was made just days before the inauguration of President-elect Donald Trump, who has been critical of government-led climate change policies. The Fed joined the NGFS in 2020, and its exit reflects ongoing pressure from Republican lawmakers concerned about the influence of climate concerns on financial regulation. Five of the Fed's seven governors voted in favor of the withdrawal, with Michael Barr and Adriana Kugler abstaining.