Federal Reserve Withdraws from Global Climate Regulation Network

The Fed cites overreach beyond its statutory mandate in its decision to leave the NGFS, a group focused on climate-related financial risks.

The Federal Reserve announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), citing its expanded scope as outside the Fed's legal authority.
The NGFS, established in 2017, aims to integrate climate risks into financial oversight and includes over 140 central banks and regulators worldwide.
Fed Chair Jerome Powell emphasized that climate policy falls under Congress’ jurisdiction, not the central bank's, despite prior steps to analyze climate-related financial risks.
The decision aligns with Republican criticisms of the Fed's involvement in climate-related initiatives and occurs just before President-elect Donald Trump’s second term begins.
The Fed's governing board voted 5-0 in favor of the exit, with two governors abstaining, reflecting internal and external debates over the scope of its regulatory responsibilities.