Investing.com -- The Federal Reserve confirmed its departure from a global assembly of central banks and regulators committed to investigating methods of managing climate risk in the financial system. The announcement was made on Friday.
The body, known as the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), has seen an expansion in its scope that the Fed stated has exceeded its statutory mandate. This is the main reason given by the Federal Reserve for its exit.
The Federal Reserve became a member of the NGFS in 2020. However, with the recent departure, it has severed its ties with the body that focuses on climate risk within the financial sector.
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