Federal Reserve disbands climate group studying financial stability risks

The Federal Reserve has disbanded several internal climate-related working groups that were originally intended to help the bank identify and address financial stability threats posed by climate change. The disbanded groups include the Supervision Climate Committee and the Financial Stability Climate Committee, both established in early 2021 when the Federal Reserve under the Biden administration began publicly discussing the impact of global warming and extreme weather on the financial system. Then-Federal Reserve Vice Chair Lael Brainard stated that these two committees were important initiatives for building the institution's capacity and knowledge system to respond to climate risks. According to informed sources, these committees were closed in March of this year, along with the termination of the Economic Activity Climate Committee and the Climate Data Committee.