The House of Representatives approved a bill on June 15 that would require the Federal Reserve to address social justice concerns, expanding the scope of the central bank’s mandate beyond its traditional priorities of price stability and economic well-being.
The House voted in favor of H.R. 2543, the Racial and Economic Equity Act, which would amend the Federal Reserve Act of 1913 to expand the mandate of the central bank, which has traditionally consisted of maintaining price stability and full employment, adding a clause which would oblige the Fed to promote “racial and economic justice.”
“The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall 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,” reads the proposed section 2C of the Federal Reserve Act….