How does the Federal Reserve tackle climate change?

KnightWhoSaysNit

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Jul 19, 2010
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I missed most of the Powell confirmation hearing today but did hear enough commentary that suggests Democrats on the Senate Banking Committee want the Fed to be involved in climate change.

Democrats, please enlighten me. How does the Federal Reserve do this?

If it were to become part of the Fed mandate, exactly how does this keep the Fed politically independent?

It seems crazy for a central bank to get into a politically charged issue (climate), which is extremely vague. Further, this isn't even something our country can do independent of major polluters like China.

Democrats, please defend the people you have elected. Explain how and why. Be specific, because that's what the Fed would need if climate were to be part of their mandate.
 

wilbury

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Feb 19, 2005
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They don't directly tackle climate change but they do deal with banking. Banking that lends money to people and businesses in flood and hurricane zones for instance.
 

KnightWhoSaysNit

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They don't directly tackle climate change but they do deal with banking. Banking that lends money to people and businesses in flood and hurricane zones for instance.

"Banking?"

So the Fed is going to tell banks that they should deny loans to established fossil fuel companies and lend to high risk "green" startups?

Seems to me that this should be a Congressional issue. Congress can fund and incentivize whatever it wants, er...can pass. Maybe that is the problem and they want the Fed to become part of the legislative branch, in lieu of what they can do without the votes.

Same thing as using Biden to make Executive Orders on issues that they cannot pass legislatively.
 
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wilbury

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Feb 19, 2005
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"Banking?"

So the Fed is going to tell banks that they should deny loans to established fossil fuel companies and lend to high risk "green" startups?

Seems to me that this should be a Congressional issue. Congress can fund and incentivize whatever it wants, er...can pass. Maybe that is the problem and they want the Fed to become part of the legislative branch, in lieu of what they can do without the votes.

Same thing as using Biden to make Executive Orders on issues that they cannot pass legislatively.
No idea if they'll encourage lending to green startups but they certainly can tighten the screws on lending for properties in established flood zones and other high risk areas. Whether or not you believe in global warming, we'd be better off if we totally shut down building in these areas anyhow.
 

KnightWhoSaysNit

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No idea if they'll encourage lending to green startups but they certainly can tighten the screws on lending for properties in established flood zones and other high risk areas. Whether or not you believe in global warming, we'd be better off if we totally shut down building in these areas anyhow.

I don't understand why you diverted from the Climate Change Agenda unless you are thinking of the alleged impacts instead of the energy sources, which is what I thought the Dems were pushing.

If the Dems want the Fed to encourage banks to tighten the screws on lending to established high risk flood and hurricane zones then that might make sense. But I did not think this was what the Dems were pushing. I thought it had to do with their Green New Deal agenda. This is why I asked. Am I wrong? If so, how exactly?

I don't see the Dems encouraging a mass migration from poor neighborhoods in New Orleans, for example. They are the types that would just throw federal money at such areas.
 

We_Are

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May 29, 2001
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No idea if they'll encourage lending to green startups but they certainly can tighten the screws on lending for properties in established flood zones and other high risk areas. Whether or not you believe in global warming, we'd be better off if we totally shut down building in these areas anyhow.
Blame NFIP... flood insurance made it possible to lend and build up our coastal areas. Prior to 1970 coastal development was limited by the fact that flood insurance was not easily or cheaply available, if at all...

Then again AOC would not be able to visit drag bars in south beach...lulz
 

KnightWhoSaysNit

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Blame NFIP... flood insurance made it possible to lend and build up our coastal areas. Prior to 1970 coastal development was limited by the fact that flood insurance was not easily or cheaply available, if at all...

Then again AOC would not be able to visit drag bars in south beach...lulz

Things like flood insurance and student loan programs are prime examples of why government should stay out of things for which it has no business. All it does is encourage bad practices.

In these examples, building in areas where there should be no building, and studying in areas that have little to no return on the investment in education. For the latter example we also now have massive brick and mortar campuses and bureaucracies to support.

I guess no one really understands what the Dems want out of the Fed. It would not surprise me if they don't know what they want either. JUST DO SOMETHING !!! THE WEATHER IS BAD OUTSIDE !!!
 
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HartfordLlion

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Sep 28, 2001
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I don't understand why you diverted from the Climate Change Agenda unless you are thinking of the alleged impacts instead of the energy sources, which is what I thought the Dems were pushing.

If the Dems want the Fed to encourage banks to tighten the screws on lending to established high risk flood and hurricane zones then that might make sense. But I did not think this was what the Dems were pushing. I thought it had to do with their Green New Deal agenda. This is why I asked. Am I wrong? If so, how exactly?

I don't see the Dems encouraging a mass migration from poor neighborhoods in New Orleans, for example. They are the types that would just throw federal money at such areas.

Unless the Fed puts parameters like exposure to hurricane or floods areas in banks lending into their stress tests, they have no real mechanisms to push a climate change agenda. It's not what the Fed does. Pledging to tackle climate change was just a Dem sound bite to placate the alt-left progressives.