The Federal Reserve is exiting the global climate change regulatory group

the Federal Reserve It announced on Friday that it was withdrawing from the global climate change regulatory group due to its activities exceeding the scope of the Federal Reserve’s legal authority.

The Fed has exited the Network of Central Banks and Greening the Financial System (NGFS), which was created in 2017 to help facilitate the progress of green finance and climate policy. The group is developing policy recommendations for central banks and financial regulators to play a role in combating this phenomenon Climate change By integrating climate risks into their oversight work.

In 2020, the Federal Reserve joined the NGFS as a permanent member, and the organization has more than 100 central banks and financial regulators as members.

“While the Board expressed its appreciation for engaging with NGFS and its members, the scope of NGFS’s work has increasingly broadened, covering a broader range of issues that fall outside the Board’s statutory mandate,” the board said in a statement.

Fed meeting minutes show policymakers see immigration and tariff shifts as creating uncertainty about inflation.

In recent years, the Fed has taken some steps to integrate climate change into its work through the use of preliminary analyzes and reports.

but, Federal Reserve Chairman Jerome Powell He has repeatedly insisted that the Fed is not responsible for setting climate change policy and that these issues fall under the authority of Congress.

Inflation rose 2.9% in December, in line with expectations

The Fed’s announcement comes before the opening President-elect Trump His second term in the White House, which is scheduled to begin Monday.

Trump criticized government efforts to pursue climate change policies.

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Reuters contributed to this report.