Fed Sounds Alarm on Climate Change’s Harm to Global Economy

Climate change makes investments riskier, blunts workers’ productivity, and shakes up monetary stability, economists told the Federal Reserve Bank of San Francisco.

The central bank’s decision to host a daylong series of climate talks this week—the first ever for the Federal Reserve system—marks another step in its growing public recognition that climate change is creating financial uncertainty.

“The Federal Reserve’s job is to promote a healthy, stable economy,” San Francisco Fed President Mary Daly said at the Nov. 8 event. “This requires us to consider current and future risks, whether we have a direct influence on them or not. Climate ...