WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Wednesday defended the central bank’s increasing scrutiny of the impact climate change could have on banks, in the wake of criticism by Republican members of Congress that by doing so the Fed is overstepping its mandate. The Fed has taken several steps in the past year to incorporate the risks posed by climate change into its oversight of the financial system. A key part of the Fed’s job, in addition to setting short-term interest rates to either stimulate or slow the economy, is regulating banks.
