The climate crisis is at high risk of becoming an economic crisis.
That is an increasingly widespread view among leading economic thinkers — that a range of economic and financial problems could result from a warming planet and humanity’s efforts to deal with it. But if you believe that to be true, what should the United States’ economist-in-chief do about it?
That question has taken new urgency as President Biden weighs whether to reappoint Jerome Powell to another term leading the Federal Reserve or choose someone else.
Climate activists and others on the left have argued that Mr. Powell should be replaced by someone with stronger credentials as a climate hawk. Demonstrators backing this cause were planning to protest at an annual Fed symposium in Jackson Hole, Wyo., starting Thursday, but the event was made online-only at the last minute because of a rise in coronavirus cases. Among other things, they want the Fed to use its regulatory powers to throttle the flow of bank lending to carbon-producing industries.