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Fed Rescinds Climate Risk Guidelines, Sparking Controversy

10/18/2025

Summary

Fed Rescinds Climate Guidelines

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) rescinded guidelines requiring large banks to consider climate-related financial risks, announced October 16, 2025.
The move reflects a policy shift under President Donald Trump, who has downplayed climate change.
Critics argue the rescission undermines financial stability amid increasing climate risks.
Some industry groups welcomed the change.
Fed officials expressed divided opinions.

Summary

Fed Considers Rate Cuts

Federal Reserve officials are considering interest rate cuts due to concerns about a weakening labor market.
Fed Chair Jerome Powell noted increased downside risks to employment, despite a stable unemployment rate, and acknowledged slowed payroll gains from lower immigration and labor force participation.
St. Louis Fed President Alberto Musalem expressed support for a rate cut but warned against excessive easing due to ongoing inflation risks.
Fed Governor Christopher Waller also advocated for a 25 basis point reduction, citing tariffs' impact on inflation and labor market stress.
The next Federal Open Market Committee meeting is set for October 28-29.

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Fed Rescinds Climate Guidelines

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) rescinded guidelines requiring large banks to consider climate-related financial risks, announced October 16, 2025.
The move reflects a policy shift under President Donald Trump, who has downplayed climate change.
Critics argue the rescission undermines financial stability amid increasing climate risks.
Some industry groups welcomed the change.
Fed officials expressed divided opinions.

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