Ahead of Trump Presidency, the Fed Quits Global Climate Network 

The central bank said it had decided to leave the network after the group’s work “increasingly broadened in scope.”The Federal Reserve said on Friday that it had withdrawn from a network of global financial regulators focused on climate change risks just days before President-elect Donald J. Trump returns to power.The central bank formally joined the Network of Central Banks and Supervisors for Greening the Financial System in December 2020, shortly after President Biden was elected. Democrats praised that decision, arguing that regulators needed to make sure financial institutions were adequately managing the risk they faced from extreme weather events.Republican lawmakers, however, immediately blasted the Fed for joining the network, saying the central bank was overstepping its congressional mandate, which requires it to keep inflation stable and the job market strong. They expressed concern that the Fed, which oversees the nation’s biggest banks, might try to discourage financial institutions from lending to oil, gas and coal producers or other fossil fuel-intensive companies.The Network of Central Banks and Supervisors for Greening the Financial System, or N.G.F.S., was formed to help central banks and other regulators exchange ideas and research as they figure out how to account for climate-related risks in the financial sector. The network also aims to “mobilize mainstream finance to support the transition toward a sustainable economy.”While the Fed initially supported the network’s goals, the central bank said in a statement on Friday, it decided to leave after the group’s work “increasingly broadened in scope, covering a wider range of issues that are outside of the board’s statutory mandate.”The decision was not unanimous. Five of the seven governors on the Fed’s board voted to withdraw from the network, including the Fed’s chair, Jerome H. Powell. Adriana Kugler and Michael S. Barr abstained. Mr. Barr recently announced that he would step down from his role as vice chair for supervision by Feb. 28.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.