Why the Fed should treat climate change's $150B economic toll like other national crises it's helped fight
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Jennie C. Stephens, Northeastern University and Martin Sokol, Trinity College Dublin
(THE CONVERSATION) Climate disasters are now costing the United States US$150 billion per year, and the economic harm is rising.
The real estate market has been disrupted as home insurance rates skyrocket along with rising wildfire and flood risks in the warming climate. Food prices have gone up with disruptions in agriculture. Health care costs have increased as heat takes a toll. Marginalized and already vulnerable communities that are least financially equipped to recover are being hit the hardest.
Despite this growing source of economic volatility, the Federal Reserve – the U.S. central bank that is charged with maintaining economic stability – is not considering the instability of climate change in its monetary policy.
Earlier this...