Climate change is a systemic financial risk, Fed props up the economy, and more

The Federal Reserve will make no change to its benchmark interest rate, the central bank announced Thursday at the conclusion of its two-day monetary policymaking meeting.

In response to reporters’ questions in a Thursday press conference, Powell praised lawmakers for their initial fiscal response, and again stressed the need for Congress to take further steps.

A split reality is emerging for U.S. shale drillers: Those that primarily pump oil are still struggling to survive, while those that produce natural gas are slowly seeing signs of recovery.

Oil-focused fracking companies are under extreme financial strain, as renewed concerns about the coronavirus pandemic are weighing down crude prices. But gas-focused drillers are getting a long-awaited reprieve. Natural-gas prices are climbing ahead of winter, and are less sensitive to lockdowns that erode demand for transportation fuels.

The close and inconclusive U.S. election has scuppered some short-term trades premised on a clear Joe Biden sweep, but money managers say they are sticking to bets on plentiful stimulus, a Chinese rebound and a green boom, regardless of who triumphs.

The U.S. Commodity Futures Trading Commission (CFTC) issued a report last month on the impact of climate change that landed like a thunderbolt.

The bipartisan report, adopted by a subcommittee of the Commission’s Market Risk Advisory Committee, declared climate change to be a major financial risk to the U.S. economy and recommended a package of actions financial regulators should take to address this risk, including putting a price on carbon.