I believe the scientific community has rigorously established that our climate is changing. But my role is not to be a climate policymaker. Consistent with the Fed’s mandates, I must focus on financial risks, and the questions I’m exploring today are about whether the financial risks associated with climate change are different enough from other financial stability risks to merit special treatment.
But before getting to those questions, I’d like to briefly explain how we think about financial stability at the Federal Reserve. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board.