San Francisco Federal Reserve President Mary Daly said climate change is affecting both employment and prices, which lands the critical topic under the Fed’s policy purview.
Daly, in a speech Tuesday to the Peterson Institute for International Economics and in follow-up questions with members of the media, stressed that costly extreme weather, rising insurance premiums, bank-priced vulnerable assets, and energy-sector job displacement have already reshaped the U.S. economy.
“Our future is uncertain: no one really knows the severity and scale of
climate change, where and who will be most affected, or the nature, extent
and duration of our response to the risks,” she said. “But one thing is certain—the
economic ground is shifting. And we have a window of opportunity to prepare; to choose the degree of hardship we will endure.”
Some, mostly Republican, lawmakers have criticized the Fed’s…