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Excerpted From: ¶ 47,179 Congressional Democrats Demand That Federal Reserve Examine Racial Employment Gaps — Proposed Legislation, HR Compliance P 47179 (CCH INCORPORATED) (2020)




On August 5, Representative Maxine Waters (D-CA), Senator Elizabeth Warren (D-MA), and Senator Kirsten Gillibrand (D-NY) introduced legislation to require the Federal Reserve to close racial employment and wage gaps and report on how the gaps change over time.

The Federal Reserve Racial and Economic Equity Act makes the following changes to the Federal Reserve Act:
• Minimize disparities. Requires the Fed 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;
• Congressional testimony. Requires the Federal Reserve Chair to testify before Congress on disparities in income, wealth, and employment between racial and ethnic groups as well the Fed's plans to address those disparities;
• Reporting. Requires the Fed's policy report to include labor force trends among racial and ethnic as well as other demographic groups.

[. . .]

This bill requires the Fed to report and testify on their efforts to fulfill this mandate and provide data on racial economic disparities, said Maxine Waters, chairwoman of the House Committee on Financial Services . As the COVID-19 pandemic crisis and its economic impacts disproportionately affect communities of color, and communities around the country march in the streets for justice, the Federal Reserve must do everything it can to ensure the recovery is equitably shared.

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