Target: Jerome Powell, Chair of the United States Federal Reserve
Goal: Protect the economy from an escalating climate change crisis.
US Treasury Secretary Janet Yellen has warned that the cascading economic impact of the climate change crisis should not be overlooked. Yellen’s statement is especially relevant compared to the recent assertion made by Fed Chair Jerome Powell that the Central Bank is not, and will not be a “climate policymaker.” Powell says the ball lies in the court of lawmakers, and “without explicit congressional legislation,” it would not be viable for the Central Bank to utilize its resources to “promote a greener economy or to achieve other climate based goals.” However, Powell seems to be ignoring the fact that the Inflation Reduction Act (IRA) of 2022 already puts the climate change crisis on the economic map, and sets an actionable blueprint for offsetting inflation with a calculated emphasis on the transition to a net zero economy.
The International Monetary Fund (IMF) has hailed the IRA as the ‘most significant piece of climate legislation in the history of the United States.’ The IRA provides for nearly $400 billion in a decade to curtail carbon emissions. The IMF has also urged the utility of the IRA as an instrument of spurring the ‘right mix of competition and cooperation from other countries,’ instead of feeding the ‘growing forces of protectionism that could stymie a green energy transition.’ In context, the Federal reserve must play its part in shifting to a renewable economy, instead of being stuck in the conservative epithet of ‘woke capitalism.’
According to a January report from the NOAA National Centers for Environmental Information, the total cost of recuperating from natural disasters in 2022 stands at a staggering $165 billion. The former chair of the Federal Reserve has noted that a substantial decline in asset value is inextricably tied to the rising intensity of natural disasters. She has explicitly stated that “a delayed and disorderly transition to a net zero economy can lead to shocks to the financial system as well.”
Demand the US Federal Reserve to pursue a cleaner outlook on the association of economy with ecology, and do more to address inflation tied with climatic effects.
PETITION LETTER:
Dear Mr. Powell,
The Treasury Secretary, Janet Yellen, has warned that the cascading effects of the climate change crisis on the economy is worth billions in terms of recovering from the economic impact of natural disasters.
You have recently commented that the Fed is not and will not be a “climate policymaker.” You have also stated that Federal Reserve depends on “explicit congressional legislation” to devise policies to adjust the monetary impact of climate change.
However, the Inflation Reduction Act of 2022 has been hailed by the IMF as the ‘most significant piece of climate legislation in the history of the United States.’ We believe that the Fed might be overlooking the impact of the IRA to structure its policies surrounding the issue. Therefore, we ask you to have the Fed play a more active role in mitigating the inflation risks directly related to the climate crisis.
Sincerely,
[Your Name Here]
Photo Credit: Markus Spiske
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