Historically untouchable issues — like climate change and race — are now on the table for the Federal Reserve, as it wades further into uncharted territory. 

Why it matters: The about-face has implications for how one of the world’s most influential economic bodies steers policy and regulates the nation’s banks.

What’s going on: The Fed recently set up two committees to look at the impact of climate change on the economy and banks — a sign previous moves on this front are getting some traction. 

Between the lines: It may feel small, particularly for issues that have threatened and plagued the country for years. 

But it’s a big deal for an institution that rarely — if ever — spoke publicly about these issues, let alone interwove them into considerations about the economy.

On climate: The Fed is behind its peers around the globe where climate change is less politicized. 

Last year the Fed became the last to officially join a central bank climate network that’s been around since 2017.

Another example: The Bank of England will incorporate climate into stress tests on banks — something Fed Chairman Jerome Powell says is in the “early stages” of consideration. 

On race: Fed officials have implied that the national unemployment rate wouldn’t be the only jobless measure they look at when measuring the health of the economy. 

Black unemployment — which tends to fall much more slowly — might also be a factor.

Flashback: In 2019, Powell started calling out the importance of keeping the economy humming so minority and low-income workers could reap the benefits.

Powell has said the Fed’s pandemic-era policies “absolutely” will not worsen income inequality in America.

Yes, but: A study from the New York Fed this year found that easy-money policies benefited the wealthy more than lower-income people — exacerbating inequality. 

Of note: As the Fed gets louder on the importance of diversity, it’s grappling with the lack of diversity in its own ranks.

The big question: Whether the sea change on climate and race is a blip or long-lasting.

“As long as the Fed is governed by reputable people, I think many of these changes are here to stay,” Adele Morris, a fellow at the Brookings Institution, tells Axios.

What to watch: Resistance from Republicans.

The latest: Sen. Pat Toomey, the top Republican on the powerful Senate Banking Committee, warned this week of “mission creep” at the Fed’s regional banks, calling out their research on topics like climate change and racial justice.