This week at the Jackson Hole symposium, the annual gathering of the Federal Reserve in the Grand Tetons, the people who guide our financial markets will discuss the state of our economy at large, and onlookers will parse the Federal Reserve chair’s words about monetary policy. But some topics probably won’t come up. Climate impact is the elephant in the room that we haven’t heard about enough from the Fed—and that has to change.
Climate-informed risk management advocates have urged, to some limited success, that the Fed roll climate risk into regulation, but it’s time to infuse it into the conduct of monetary policy, too, to cushion the economy from shocks and uncertainty.
