from the San Francisco Fed
– this post authored by Glenn D. Rudebusch
The ongoing trend of climate change – including higher temperatures and more extreme weather – will result in economic and financial losses for many businesses, households, and governments. Moreover, the uncertainty about the severity and timing of these losses is a source of financial risk. Recently, the Federal Reserve joined other financial regulators to warn that such climate-related financial risk may threaten the safety and soundness of individual financial institutions and the stability of the overall financial system.
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