TOP News

Politics: Senate Democrats call for diversity among new Federal Reserve Bank presidents

The ‘Year Two’ Curse

  The ‘Year Two’ Curse Even when the president’s party passes historic legislation, voters don’t seem to care.Over those two years, the 89th Congress, finally completing a crusade started by Harry Truman almost two decades earlier, created the massive federal health-care programs of Medicare for the elderly and Medicaid for the poor. It put a capstone on the civil-rights revolution by approving the Voting Rights Act. It created the first large-scale system of federal aid to elementary and secondary schools and launched the Head Start program. It approved breakthrough legislation to combat pollution in the air and water.

A group of Senate Democrats on Thursday called on Federal Reserve Chairman Jerome Powell to prioritize diverse candidates as the institution searches for replacements for the Boston and Dallas Federal Reserve Bank presidents, both of whom retired this year.

a large stone statue in front of a building: Senate Democrats call for diversity among new Federal Reserve Bank presidents © Greg Nash Senate Democrats call for diversity among new Federal Reserve Bank presidents

In a letter to Powell led by Sen. Bob Menéndez (D-N.J.), the senators outlined the Federal Reserve's "well-documented diversity problem," noting a Federal Reserve report that found that only five percent of the workforce identifies as Hispanic or Latino, and of the 870 PhD economists at the central bank, only nine percent are Hispanic and one percent are Black.

On The Money — Democrats tee up Senate spending battles with GOP

  On The Money — Democrats tee up Senate spending battles with GOP Happy Monday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.Today's Big Deal: Senate Democrats released several spending bills today and ignited several flights over federal funding. We'll also look at backlash to Biden's tax enforcement plan and why Republican lawmakers are willing to ride for Jerome Powell.But first, Cam Newton is looking for a job.For The Hill, I'm Sylvan Lane. Write me at [email protected] or @SylvanLane. You can reach my colleagues on the Finance team Naomi Jagoda at [email protected]

"You yourself have stated that you are 'not at all satisfied with the results' of the Fed's attempts to recruit more diverse staff, and neither are we," the senators wrote Powell.

Although Powell cannot directly appoint Federal Reserve Bank presidents, candidates selected by each bank's search committee are ultimately subject to the approval of the Federal Reserve Board of Governors, which Powell chairs.

Boston Federal Reserve Bank President and CEO Eric S. Rosengren announced mid-September that he was moving his long-planned retirement from June of 2022 to September 31 of this year, and Dallas Federal Reserve Bank President and CEO Rob Kaplan retired on Oct. 8.

Menéndez - joined in the letter by Sens. Sherrod Brown (D-Ohio), Tina Smith (D-Minn.), Raphael Warnock (D-Ga.), Ben Ray Luján (D-N.M.), Bob Casey (D-Pa.), Alex Padilla (D-Calif.), Elizabeth Warren (D-Mass.), Cory Booker (D-N.J.), Jeff Merkley (D-Ore.), and Catherine Cortez Masto (D-Nev.) - wrote that "the current makeup of the Federal Reserve System does not reflect the country that it serves."

Yale Law’s Diversity Bureaucrats Made Five Mistakes

  Yale Law’s Diversity Bureaucrats Made Five Mistakes A bizarre controversy over a party invitation exposes choices typically made behind closed doors at an elite school.The Yale Law student in question, Trent Colbert, belongs to two student groups, the Native American Law Students Association, or NALSA, and the conservative Federalist Society. He emailed members of the former group that “we will be christening our very own (soon to be) world-renowned NALSA Trap House … by throwing a Constitution Day Bash in collaboration with FedSoc,” adding that refreshments would include “Popeye’s chicken, basic-bitch-American-themed snacks (like apple pie, etc.),” and various beverages.

"The Fed's diversity problem is especially bad at the executive level," wrote the senators, noting that in the 107-year history of the central bank, the Board of Governors has only had three Black members, one Black Federal Reserve Bank president, three non-white presidents and no Hispanic presidents.

The senators added an economic argument to their call for diversity, using the example of the subprime mortgage crisis in 2007 and 2008.

The senators specifically suggested that the appointment of a first Hispanic Federal Reserve Bank president "would be a critical first step in bringing diverse perspectives to the executive management of our nation's central bank."

"The lack of diversity at the Federal Reserve is not only harmful to these underrepresented groups, it has a negative impact on the Fed's ability to promote maximum employment and price stability, the safety and stability of the financial system, and consumer protection and community development," they wrote.

Vikings' Kirk Cousins, Nate Stanley expected to return Thursday from COVID-19 list .
Yahoo Sports senior NBA writer Vincent Goodwill joined the Posted Up with Chris Haynes podcast to discuss New York's signings in the first two days of free agency, and why they could setting the table for a trade to get Damian Lillard from the Portland Trail Blazers. Hear the full conversation on the Posted Up with Chris Haynes podcast. Subscribe on Apple Podcasts, Spotify, Stitcher or wherever you listen.

See also