Brainard Says Fed Won’t Dictate Bank Lending on Climate Risk (1)

Federal Reserve Governor Lael Brainard, who has been tapped by President Joe Biden to serve as vice chair, said that the U.S. central bank won’t tell lenders to avoid fossil fuel companies as some progressive groups have urged.

Brainard’s comments before the Senate Banking Committee come in the midst of intense debate between Democrats and Republicans over the role the Fed should play in helping tackle climate change.

“We would not tell banks which sectors to lend to or which sector to not lend,” she said Thursday in response to a question during her confirmation hearing. Still, she added ...