the road to recovery, we will wind down these lending facilities at such time as we determine the circumstances we confront are no longer unusual or exigent. not only is the federal reserve using its full range of tools to support the economy through this challenging time, but our policies will also help ensure that the rebound in activity when it commences will be as robust as possible. that said, it is important to note that the fed's statutory authority grants us lending powers, not spending powers. the fed is not authorized to grant money to particular beneficiaries, to meet the payroll expenses of small businesses, or to underwrite the unemployment benefits of displaced workers. programs to support such worthy goals reside squarely in the domain of fiscal policy. the fed can only make loans to solvent entities with the expectation the loans will be paid back. direct fiscal support for the economy is 2 / 3 bis central bankers'speeches thus also essential to sustain economic activity and complement what monetary policy cannot accomplish on its own. direct fiscal support can make a critical difference, not just in helping families and businesses stay afloat in a time of need, but also in sustaining the productive capacity of the economy after we emerge from this downturn. fortunately, the fiscal policy response in the united states to the coronavirus shock has been both robust and timely. in four pieces of legislation passed in just over two months, the congress has voted $ 2. 9 trillion in coronavirus relief, about 14 percent of gdp. this total includes nearly $ 700 billion for the paycheck protection program to support worker retention at small companies and more than $ 450 billion for the u. s. treasury to provide first - loss equity funding for the fed credit facilities that i discussed earlier. while the scale, scope, and timing of the monetary and fiscal policy responses to the coronavirus pandemic are unprecedented and will certainly cushion the blow the shock inflicts on the economy, the shock is severe. depending on the course the virus takes and the depth and duration of the downturn it causes, additional support from both monetary and fiscal policies may be called for. concluding remarks the coronavirus pandemic poses the most serious threat to maximum employment and, potentially, to price stability that the united states has faced in our lifetimes. there is much that policymakers — and epidemiologists — simply do not know right now about the potential course that the virus, and thus the economy, will take. but there is one thing

2017 ), 1362 – 1369, https : / / science. sciencemag. org / content / 356 / 6345 / 1362 /. basel committee on banking supervision, “ climate - related financial risks : a survey on current initiatives, ” survey ( basel : bank for international settlement, april 2020 ), https : / / www. bis. org / bcbs / publ / d502. pdf. - 8filling these data gaps is critical for measuring the banking sector ’ s exposure to climate risk and analyzing the implications for financial stability and prudential risks. federal reserve staff are participating in a new network for greening the financial system ( ngfs ) workstream on “ bridging the data gaps. ” the workstream will create a detailed list of gaps in data items at the macroeconomic level, the market level, and the financial market participant level needed to model climate risk. 23 climate change also poses distinct modelling challenges. the several decades over which climate risks are projected to materialize far exceed a bank ’ s typical risk management and planning time horizon. moreover, financial risk models are often backward - looking and extrapolate historical trends, which, in the case of climate, may be unreliable predicators of future outcomes. new tools and forward - looking approaches will be required. 24 we continue to strengthen our understanding of how banks are measuring and managing climate risks. over time, it will be important to develop a framework for evaluating how banks are taking into account climate - related risk in their modelling and management of credit, market, liquidity, and operational risks. some jurisdictions have developed programs to provide banks with supervisory expectations to manage their risks associated with climate change. 25 as a financial industry association has noted, “ climate network for greening the financial system, “ ws - bridging the data gaps workstream : mandate and workplan from april 2020 to april 2022, ” september 3, 2020, https : / / www. ngfs. net / sites / default / files / media / 2020 / 09 / 03 / wsbdg _ mandate _ final. pdf. see kevin stiroh, “ emerging issues for risk managers ” ( remarks at garp global risk forum, new york, ny, november 17, 2019 ), https : / / www. newyorkfed. org / newsevents / speeches / 2019 / sti191107. see, for example, australian prudential