MNI TRANSCRIPT: Powell: Climate Risk "Part of Our Role"

     WASHINGTON (MNI) - The following is the portion of a transcript from

Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting

Wednesday:

     Q: I'm wondering, do you think that there is a financial stability risk

from climate change? You've spoken several times that you think severe weather

events are happening more often and that the Fed is monitoring what that could

physically do to a bank or a financial institution, but that's sort of one

institution. Do you think there is a system-wide risk that could develop from

climate change? 

     A: So, that's an interesting question. The question being is there a

system-wide financial stability risk. I would say, over the longer term it's

certainly possible. I would say that sort of feeds into the way we're thinking

about climate change as an institution. So as I've mentioned, climate change is

an important issue, very important issue, but it's essentially a sign to many

other agencies in the Federal Government and state governments for leadership on

that. And importantly, society's overall response to climate change needs to be

decided by elected officials and not by the Fed. All of that said, if you look

at our mandate, we've got a monetary policy mandate and more immediately

perhaps, a supervisory mandate where we're supervising financial market,

utilities, and financial institutions, banks, and we share overall

responsibility for financial stability with a number of agencies. And that

latter part, I think the public has every right to expect and will expect that

we will assure that the financial system is resilient and robust against the

risks from climate change. Now, I think that's got to be right. We are in the

very early stages as are other central banks and understanding what that means.

There is quite a lot of work going on around the world at other central banks

and at the Fed to think that through, but I do think it's -- in that sense, it

has to be part of our role. But not the overall response of society to climate

change, that's not us.

     Q: And if I could follow up. Could you clarify why the Fed hasn't signed on

to the network for greening the financial system like 40 other central banks

have?

     A: So we've attended all of their meetings and taken part in them and we've

been looking at joining in one form or another and talking to them about that.

We will probably do that at some point, so that's on ongoing question, but we're

very much attending those meetings and taking part in them.

--MNI Washington Bureau; +86 (10) 8532-5998; email: ryan.hauser@marketnews.com

[TOPICS: MMUFE$,M$U$$$]