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WASHINGTON, Jan 17 (Reuters) - The U.S. Federal Reserve announced on Friday its withdrawal from a global body of central banks and regulators focused on addressing climate risk in the financial system.

The Fed stated that it was leaving the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) due to the organization's expanded scope, which no longer aligns with the Fed's statutory mandate.

Having joined the group in 2020, the Fed's departure coincides with President-elect Donald Trump's imminent inauguration, who has been critical of government-led climate change initiatives.

Established in 2017, the NGFS aids central banks and supervisors in incorporating climate change risks into monetary policy and financial oversight. A spokesperson for the NGFS did not immediately provide a comment.

While the Fed had begun to integrate climate change into its activities in recent years, Chair Jerome Powell emphasized the Fed's limited role. Powell maintained the view that Congress, not the Fed, holds the responsibility for climate policy.

Republican opposition in Congress to regulating climate risk in the banking industry, combined with Trump's impending leadership, has prompted exits in both public and private sectors. Bank of Montreal also withdrew from the Net-Zero Banking Alliance on the same day, becoming the first Canadian bank to do so. Several major U.S. banks have followed suit in announcing their exits from the alliance.