MNI BRIEF: Fed's Waller Says Climate Doesn't Pose Bank Risks

Climate change does not present a major risk to bank safety or the financial system, and thus does not deserve special attention from the Federal Reserve, Fed Governor Chris Waller said Thursday.

"Climate change is real, but I do not believe it poses a serious risk to the safety and soundness of large banks or the financial stability of the United States. There is no need for us to focus on one set of risks in a way that crowds out our focus on others," he said in remarks prepared for a conference in Madrid jointed hosted by IE University, Banco de España and the St. Louis Fed.

The Fed has been criticized by Republican lawmakers in recent years for ramping up its focus on climate change risks, while some left-leaning groups say it's not doing enough to limit the impact of climate change on the financial system. Waller added in a footnote to the speech: "While the actions the Federal Reserve has taken to date are mostly in an exploratory spirit, they could lead to the perception that we intend to give climate change special treatment in the future."