GOP senators warn Federal Reserve to beware of environmental agenda

Senate Banking Committee Republicans led by Ranking Member Pat Toomey urged Federal Reserve Chair Jerome Powell not to pursue environmental policies in a letter Thursday.

Toomey and the other Republican committee members warned that the Federal Reserve potentially using regulatory authority to push an environmental agenda would be beyond its scope of authority, according to the letter sent Thursday. The senators noted several recent actions taken by the Federal Reserve that suggest the U.S. central bank could pursue climate policies.

“We question both the purpose and efficacy of climate-related banking regulation and scenario analysis, especially because the Federal Reserve lacks jurisdiction over and expertise in environmental matters,” the Republican senators wrote.

The Banking Committee Republicans referenced the Federal Reserve’s decision to include climate change in its recent financial stability report for the first time ever and its decision to join the Network of Central Banks and Supervisors for Greening the Financial System in December. The Federal Reserve also recently created the “Supervision Climate Committee.”

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