Federal Reserve Withdraws From NGFS Climate Coalition Three Days Before Trump's Inauguration

Jan 17, 2025, 07:20 PM

The Federal Reserve has announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global coalition focused on addressing climate risk in the financial sector. The decision to leave the NGFS was made because the group's scope has broadened beyond the Fed's statutory mandate, according to a statement from the central bank. Five governors voted in favor of leaving, with Michael Barr and Adriana Kugler dissenting. The move comes three days before the inauguration of President-elect Donald Trump, who has previously criticized government efforts to prescribe climate change policies. The Fed joined the NGFS in 2020, and its exit reflects a stance that the central bank should not be involved in setting climate change policy, a responsibility it believes lies with Congress.