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Federal Reserve says it will leave climate change organization

  • The Federal Reserve announced its withdrawal from the network of central banks and supervisors for greening the financial system, stating the group's activities exceeded its legal authority.
  • The NGFS was established in 2017 to promote green finance and climate policy among central banks and financial regulators.
  • Fed Chair Jerome Powell emphasized that climate change policy is under Congress' authority, not the Federal Reserve's.
  • The announcement of the exit comes as major US banks also withdraw from climate-focused initiatives, raising concerns about regulatory influence on financial practices.
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