When disaster recovery becomes a growth sector, that should be a flashing red warning that our climate policies need a serious refresh.
Our #FedLit newsletter explores what that refresh could look like—and the risks of standing still. fedlit.substack.com
Climate change is already impacting our economy, whether it is insurance fragility due to increasing climate disasters or the impact on labor participation across the globe.
Our #FedLit newsletter provides a good foundation for understanding the stakes.
fedlit.substack.com
Extreme heat is taking a toll on workers.
New research shows how a 3-degree Celsius warming scenario will have negative impacts on labor supply globally.
Dive into why this is the Fed's business in our latest #FedLit📖
fedlit.substack.com/p/issue-7-extreme-heat-d...
Extreme weather is already reshaping our economy. But central banks still act like climate shocks aren’t part of their inflation mandate. 🌍
The latest #FedLit dives into “adaptive inflation targeting” w/ David Barmes. 🎧 fedlit.substack.com/p/issue-6-adaptive-infla...
Promo graphic for fed lit with an image of David Barmes
🎧 This month's #FedLit is an interview with Sarah Bloom Raskin, @karlsson-kris.bsky.social, and David Barmes, Senior Fellow at @granthamlse.bsky.social.
They unpack “adaptive inflation targeting” & how central banks are navigating climate-driven economic shocks. fedlit.substack.com/p/issue-6-ad...
Globally, climate change, measured as higher average temperatures, could contribute 0.93–3.23 percentage points per year to food inflation, and 0.32–1.18 percentage points to headline inflation by 2035. For inflation-targeting regimes with a 2 percent target, like the Fed’s flexible inflation-targeting (FIT) approach, this could account for more than half of that target.
🌡️ Persistent climate shocks are pushing prices up—and the Fed’s fixed 2% target isn’t built for this new reality.
Our latest #FedLit explores how adaptive inflation targeting lets the Fed respond flexibly while supporting a clean energy future: fedlit.substack.com/p/issue-5-su...
Two world maps labeled Figure S1, showing the pressure on headline and food inflation rates due to higher average temperatures in 2035 under SSP 585 scenario. The left map shows annual pressure on food inflation, and the right map shows annual pressure on headline inflation, both color-coded from dark red representing higher impacts to light pink for lower impacts. A note indicates SSP 585 is a high-emissions scenario. Source: Kotz et al. (2024).
📈 Climate change is driving inflation—and the Fed’s playbook isn’t built for it.
Sarah Bloom Raskin & @karlsson-kris.bsky.social break down adaptive inflation targeting: a smarter way to tackle climate shocks without stalling the green transition. #FedLit 🌍💸 fedlit.substack.com/p/issue-5-su...
Curious about how climate risk shapes the future of central banking?
Make sure you're subscribed to #FedLit 💡!
Each month Sarah Bloom Raskin & @karlsson-kris.bsky.social break down critical research on financial stability and climate’s impact. fedlit.substack.com/
As the Fed navigates rising debt costs and bond market instability, a new risk is looming: climate-induced credit downgrades.
Our recent #FedLit explores how climate denial could erode US creditworthiness—and the Fed’s power to respond. fedlit.substack.com/p/issue-4-gl...
Key finding from the Roosevelt Institute: Climate risk could decrease sovereign creditworthiness globally, with 63 countries potentially facing downgrades by 2030, increasing to 80 by 2100. Citation includes Sarah Bloom Raskin and Kristina Karlsson from 'Fed Lit: Issue 4 - Global Emissions + Sovereign Creditworthiness + Debt Costs'.
💡New research shows rising temps could tank sovereign credit ratings—costing the US up to $95B by the year 2100.
In the latest #FedLit, Sarah Bloom Raskin & @karlsson-kris.bsky.social break down the bond market risks—and why the Fed should care. 🌍 fedlit.substack.com/p/issue-4-gl...
This isn't just a regional problem. It's a systemic economic risk.
As we argue in #FedLit, the Fed can't ignore climate risk. The costs are mounting. fedlit.substack.com/p/issue-1-cl...
#ICYMI: The week’s top stories
✅ What FDR's first 100 days taught us, and how it can serve as a blueprint for a better democracy now
✅ Vol. 3 of #FedLit 💡 covers climate risk and credit markets
More in our #RooseveltRundown: rooseveltinstitute.org/roosevelt-ru...
#ICYMI: The week’s top stories
✅ What FDR's first 100 days taught us, and how it can serve as a blueprint for a better democracy now
✅ Vol. 3 of #FedLit 💡 covers climate risk and credit markets
More in our #RooseveltRundown: rooseveltinstitute.org/roosevelt-ru...
Slide presentation from Roosevelt Institute indicating key finding: Climate risk, associated with increased credit demand and loan standards decrease, cited by Sarah Bloom Raskin & Kristina Karlsson from 'Fed Lit: Issue 3. Climate Risk + Credit Market Contraction'.
💡 New research offers insights into the effect climate risk has on credit market conditions.
Sarah Bloom Raskin & @karlsson-kris.bsky.social explore this research, it's findings, and why the Fed should be paying attention in this week's #FedLit 🌏 fedlit.substack.com/p/issue-3-cl...
A stack of coins next to falling dominoes with the text 'Issue 3: Climate Risk -> Credit Market Contraction' and the link
🌎 Our climate is impacting insurability, which has downstream effects on credit markets.
The latest #FedLit from Sarah Bloom Raskin & @karlsson-kris.bsky.social dives into research that links temperature spikes 🌡️ to credit market volatility: fedlit.substack.com/p/issue-3-cl...
Text excerpt discussing the relationship between climate risk, economic policy uncertainty, and state economic activity.
Uncertainty isn’t just psychological—it shapes real economic outcomes.
This month’s #FedLit explored how policy unpredictability and climate risk combine to slow economic growth growth.
Make sure to subscribe to keep up with each issue! ⤵️ 🌏 fedlit.substack.com/p/issue-2...
Key finding graphic that reads: Climate risk, measured by temperature increases and temperature volatility, had a statistically significant negative impact on the state-level Coincident Economic Activity Index (CI). This index tracks nonfarm payroll employment, unemployment, average hours worked in manufacturing, wages, and salaries.
🔥 Rising temperatures + unpredictable economic policy = a recipe for stagnation. States with high policy uncertainty face 10x the economic hit from climate risk.
More in the latest #FedLit from Sarah Bloom Raskin & @karlsson-kris.bsky.social: fedlit.substack.com/p/issue-2-cl...
Promotional graphic for Fed Lit, a new newsletter from the Roosevelt Institute.
The future of central banking depends on addressing climate risk. 🌍
Don't miss #FedLit – a new monthly newsletter from Sarah Bloom Raskin and @karlsson-kris.bsky.social, diving deep into climate and central banking. Subscribe now! fedlit.substack.com
Our 1st #FedLit post focuses on insurance market dynamics in Florida. We learned a lot from Ishita Sen Parinitha Sastry and Ana Maria Tenekedjieva about how fragile, often insolvent, insurers that dominate the market in Florida, drive increased mortgage delinquencies after climate disasters. 👀👇
🌪️ Climate disasters are hitting insurance and housing markets.
In the first #FedLit issue, @karlsson-kris.bsky.social & Sarah Bloom Raskin explore how fragile insurers and mortgage delinquencies are tied to climate risk—and why the Fed must act. fedlit.substack.com/p/issue-1-cl...
Image of a graphic that reads Fed Lit from the Roosevelt Institute
Central bankers can’t afford to ignore climate risk.
#FedLit 🌍 is a new monthly newsletter from @karlsson-kris.bsky.social & Sarah Bloom Raskin on all things climate & central banking. Subscribe now ahead of the first issue! fedlit.substack.com
