Ex-Fed Official Sees Secular ‘Shocks’ Ahead From Extreme Weather

The Federal Reserve’s former top-ranking official overseeing climate risk says the US economy faces a series of long-term, structural shocks as a result of increasingly extreme weather patterns.

Kevin Stiroh, who left the Fed earlier this year after it wound down large parts of its work on monitoring how global warming is impacting financial stability, said banks should expect to see the fallout “materialize” in balance sheets and income statements.

“Climate-related shocks are likely to be wide reaching and secular, rather than narrow and cyclical,” Stiroh said in an interview. “There’s a long-term trend, certainly on the physical ...