Fed's Unexpected Exit: Climate Finance Coalition

The Federal Reserve has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The decision was made due to the group's expanded focus, which the Fed claims conflicts with its primary legal responsibilities. The central bank initially joined NGFS in 2020.

The Federal Reserve has made a surprising move by announcing its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) on Friday.

In a statement, the Fed explained that its decision was driven by the NGFS's expanded agenda, which it believes oversteps its statutory mandate.

The central bank, which became a member of the NGFS in 2020, is now stepping back as the group's objectives shift beyond its core responsibilities.

(With inputs from agencies.)