US Treasury Secretary Yellen’s warning of a “falling asset value”

In her speech at the first meeting of the Financial Stability Oversight Board’s Climate-Related Financial Risk Advisory Committee, Minister Yellen drew attention to the financial impact of climate change.

Stating that a delayed and erratic transition to a net-zero economy could cause shocks to the financial system, Yellen said: “As climate change intensifies, natural disasters and rising temperatures can lead to a cascading down of asset values ​​in the financial system. ”He made the assessment of him.

“INCREASE 5 TIMES”

Noting that these effects are not hypothetical, they are already happening, Yellen noted that in the last 5 years, the annual number of multi-billion dollar disasters in the US has increased 5 times compared to the 1980s. , even after accounting for inflation.

Noting that states like California, Florida and Louisiana have seen especially severe storms and fires recently, Yellen said the latest destructive hurricanes in the South and intensifying storms on the West Coast are reminiscent of how climate change is accelerating.

Yellen emphasized that in addition to the impact of these disasters on individuals and families, their economic and financial impacts are also significant. (AA)