Federal Reserve Governor Christopher Waller said there’s no need for central bankers to pay special attention to risks to the financial system from climate change because there’s not an obvious danger to financial stability.

“Climate change is real, but I do not believe it poses a serious risk to the safety and soundness of large banks or the financial stability of the United States,” Waller said at a conference in Madrid. “Risks are risks. There is no need for us to focus on one set of risks in a way that crowds out our focus on others.”

“My job is to make sure that the financial system is resilient to a range of risks,” he added. “And I believe risks posed by climate change are not sufficiently unique or material to merit special treatment relative to others.”

Waller, who was appointed by former President Donald Trump, dissented in December 2022 from the Fed’s proposed guidelines that lenders with more than $100 billion in total assets could use to safely deal with climate-related financial risks. The Fed draft guidance seeks to deal with possible risks tied to credit, liquidity and other areas.

The Fed governor didn’t discuss the US economy or outlook for monetary policy in his prepared remarks.

Waller said climate-related events – fires, hurricanes and natural disasters – could be devastating to local communities without being material to the overall US economy. While climate changes could affect property values in individual cities, there’s no evidence of a broader risk, he said.

--With assistance from Matthew Boesler.