Just....wow.
Regional Federal Reserve Banks are taking an increasingly “alarming” stance on politically charged issues like racial justice, according to Sen. Pat Toomey.
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Regional Federal Reserve Banks are taking an increasingly "alarming" stance on politically charged issues like racial justice, according to Sen. Pat Toomey, a Republican from Pennsylvania who is the ranking member of the Senate Banking Committee.
Federal Reserve banks in
Atlanta,
Boston and
Minneapolis recently dedicated resources to social policy, reflecting the political leaning of officials who are neither elected nor confirmed by the Senate.
The Federal Reserve’s mission statement mandates the central bank to achieve maximum employment and stable prices while being free from political influence. Experience has shown that countries with
independent central banks achieve better outcomes for their citizens.
Pursuing a highly politicized social agenda unrelated to monetary policy is inflicting "reputational damage" on the Minneapolis, Atlanta and Boston Fed banks and the Federal Reserve as a whole, Toomey said.
The three banks recently spearheaded a series that was participated in by all 12 regional banks, which centered on the belief that "racism forms the foundation of inequality in our society."
The "Racism and Economy" series highlighted a number of topics, including structural racism in housing, education and labor markets.
Atlanta Fed President Raphael Bostic, who is the first Black Fed president, on Monday
told Axios that should he become Fed chairman, he would steer the central bank toward economic inclusivity and equity.
Earlier this year he said there are "definitely merits" to reparations and called the changes to Georgia voting laws "troubling." That came after last year he published a letter titled "
A Moral and Economic Imperative to End Racism."
The Minneapolis Fed, meanwhile, in its 2020 Annual Report renewed its commitment to dismantling systemic racism. Additionally, a report published by the Boston Fed in December 2020 said the deaths of George Floyd, Breonna Taylor and others were the result of the "racist roots of this country."