Climate Change Cited As Danger To US Economy In The Annual Report To Congress

 

The US Financial Stability Oversight Council chaired by Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen, and the heads of other regulatory agencies including the Securities and Exchange Commission, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency in their annual report to Congress, had cited climate change as a new danger to the U.S. economy. It says there could be likely loan losses after natural adversities like floods and fires have become so incessant lately.

The report states thus "Increased frequency and severity of acute physical risk events and longer-term chronic phenomena associated with climate change are expected to lead to increased economic and financial costs."

Aside from the above-stated issues, Council also highlighted cybersecurity as another emerging risk to the US economy. The present-day rapid-spreading omicron variant of the virus, a current but tenacious prickle in price increases, and worries that financial chaos in China could unfavorably upset the U.S. and worldwide economy were raised too.