That’s great. Let’s base our economic policy on race.
The best move is for the Fed to make the economy great, which will help all, including minorities. Not try to adhere to some artificial guidelines.
According to the Wall Street Journal:
President Biden recently promised in these pages not to interfere with the Federal Reserve. Yet last week he endorsed a House bill that would add racial equity to the Fed’s dual mandate of price stability and full employment . . .
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 . . .
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.”
The bill directs the Fed to include race in monetary policy, the operation of payment systems, and the supervision of banks and non-banks deemed by the Financial Stability Oversight Council to be systemically important . . .
How small would the black-white unemployment gap have to be, and how high would prices have to climb, before the Fed considers raising interest rates?
Easing underwriting standards to boost minority credit and homeownership could cause defaults and foreclosures to spike in a recession, as happened during the last financial crisis. Democrats would then accuse banks of predatory lending.