Three ways the Federal Reserve could fight climate change : The Indicator from Planet Money From buying green bonds to monitoring bank lending, some central banks have already created policies to help fight climate change risk. Should the Fed be next?

Can the Fed help solve climate change?

Can the Fed help solve climate change?

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Kevin Dietsch/Getty Images
WASHINGTON, DC - OCTOBER 06: Federal Reserve Chairman Jerome Powell walks between meetings with Senators on Capitol Hill on October 06, 2021 in Washington, DC. (Photo by Kevin Dietsch/Getty Images)
Kevin Dietsch/Getty Images

The Network for Greening the Financial System is a coalition of central banks who want to challenge financial institutions to use their leverage to help fight climate change with policy.

Two of its members, the Bank of England and the European Central Bank, are examples of central banks who prove that it's possible.

Across the pond, however, the Federal Reserve has been cautious to get involved in anything seen as too political. The Fed has protected itself from political interference and prides itself in doing so.

As the planet continues to warm and natural disasters become more frequent, it's clear the clock is ticking to help slow climate change. Should the Fed relinquish some of its independence to help solve the crisis?

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