Gabby Brown, gabby.brown@sierraclub.org
Washington, DC -- Today, President Biden renominated Jerome Powell to continue in his current role as Chair of the Federal Reserve. He also nominated Lael Brainard, who currently serves on the Federal Reserve Board of Governors, as Vice Chair. There are still three vacant seats on the Federal Reserve Board of Governors to fill, including the important position of Vice Chair for Supervision.
The Fed is responsible for ensuring the stability of our financial system, and identifying and addressing threats to that stability. The climate crisis poses significant risk to our economy, including the physical risks associated with more frequent severe weather events, as well as the risks posed by the transition away from fossil fuels toward a clean energy economy.
The Chair of the Fed has the mandate and the authority to put safeguards in place to ensure that our economic system is prepared to withstand climate chaos, as well as to rein in risky fossil fuel investments from Wall Street that threaten to make the problem worse. However, under Powell’s leadership, the Fed has failed to use this authority to address climate risk.
Brainard has spoken on multiple occasions in the past about the need for the Fed to recognize and address climate-related risks to the financial system.
In response, Sierra Club Fossil-Free Finance Campaign Manager Ben Cushing released the following statement:
“The Fed has an obligation to help protect the economy and the financial system from the growing dangers of climate change, and to do so in a just and equitable manner. To date, the Fed has failed to adequately deploy the tools available to address the threat climate change poses to our economy, and this inaction is putting us all at risk. We are encouraged to see Governor Brainard being elevated to the role of Vice Chair, and it is essential that President Biden nominate additional board members, including the Vice Chair of Supervision, that will act to address climate-related threats to our economy. We will also be paying close attention during the confirmation process to see how Chairman Powell intends to use the Fed’s authority to protect communities, small businesses, pensions, and families from a climate-driven financial crisis.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.