A ‘green interest rate?’ Federal Reserve digs into climate change economics

This translation has been automatically generated and has not been verified for accuracy.In their deliberations on monetary policy, Federal Reserve policy-makers need to consider many factors, but up to now, climate change has not been one of them.

“It’s important for us from a monetary policy perspective to know what the potential growth rate of the economy is and if climate events or climate risk is going to shave that off, even if it’s over the long term,” San Francisco Fed chief Mary Daly said in New York earlier this week. Scientists are in broad agreement that carbon dioxide from cars, power plants and other human sources are behind the climate change that’s already making powerful hurricanes, severe drought, and other weather extremes more frequent. Already the target of Trump’s ire for not lowering interest rates even more than he already has, Fed Chair Jerome Powell said recently that central banks are working out how directly they should confront climate change.

At the conference, Carnegie Mellon University professor Nicholas Muller will outline a “green interest rate.” Simply put, he suggests interest-rate setting should take into account the economic drag that greenhouse gas emissions are projected to cause. The Dallas Fed devoted much of a recent quarterly publication to climate change, including an analysis of carbon emissions in the state of Texas.The Richmond Fed last month addressed the question of central banks and climate change in its own quarterly publication.

globebusiness End usury now!

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed’s Charles Evans says U.S. economy in ‘good place,’ but watching inflationEvans points out that the current level of interest rates, in his view, would not be appropriate should there be a future negative shock to the U.S. economy
Source: globeandmail - 🏆 5. / 92 Read more »

Mortgage stress tests may be driving riskier homebuyers to borrow from private lendersHousing market cooled during the year’s first half, CMHC says, after rising interest rates and efforts to weed out risky buyers took their toll
Source: nationalpost - 🏆 10. / 80 Read more »