Wednesday, June 22, 2022

A Woke Mandate for the Federal Reserve - WSJ

The House bill passed last week 215-207 with little media notice. But it deserves attention because it reveals how the Biden Administration and Democrats plan to politicize monetary policy and financial regulation.

Recall that Candidate Biden advocated making reducing racial disparities a third monetary mandate. You have to wonder if one reason the Fed was slow to tighten policy was because the central bankers agreed with him. Several Federal Open Market Committee (FOMC) members promoted the goal of “inclusive” employment even as inflation began to creep up.

Now House Democrats want to codify racial equity as part of the Fed’s mandate. Their bill would require the Board of Governors and FOMC to “exercise all duties and functions in a manner that fosters the elimination of disparities across racial and ethnic groups with respect to employment, income, wealth, and access to affordable credit.”

via www.wsj.com

Monetary policy is the wrong venue for this sort of thing. But that would be if "racial equity" was really about racial equity.

https://rightcoast.typepad.com/rightcoast/2022/06/a-woke-mandate-for-the-federal-reserve-wsj.html

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