How The Fed Can Fix Its Diversity Problem
The national Central Bank has recently come under intense scrutiny for the appointment of a predominantly white males from banking and corporate sectors for leadership positions. Last month, 127 members of Congress sent a highly publicized letter calling for Yellen to make a guide that better reflects the diversity of the United States. Over the past two years, tired of the coalition, which includes public organizations and labor collectives in each of the 12 Federal reserve or reserves may refer to districts, sat down with Yellen and other fed policy makers to ask that the more diverse candidates are considered for leadership positions in the Federal or foederal (archaic) may refer to reserve banks, and that the process of selecting Federal reserve Bank presidents for greater transparency and public participation. The call for membership in the Federal reserve, which reflects America's diversity is enshrined in a law passed by Congress 40 years ago, the main thing to keep in mind when considering the modest progress recently advertised Yellen. The law requires that the Federal reserve "to represent the public, without discrimination on the basis of race, religion, color, sex or national origin, and with due but not exclusive attention to the interests of agriculture, Commerce, industry, services, labor and consumers." Although we note with satisfaction that Yellen became the first woman ever to hold the position of Chairman of the fed in 2014, in reality, the fed is far from representative of the public. Currently, 11 of the 12 presidents of the regional reserve banks are 12 white and 10 men. No President of the reserve Bank black or Latino and, therefore, there is no representation from the communities most affected by the financial crisis of 2008. In fact, there has never been a President of African American reserve Bank in the history of the Federal reserve system. In addition, all members voting powerful interest rate-setting fed's Federal open market Committee (FOMC) white. This is a problem. Power to ensure the country reaches full employment rests solely on people who do not share the life experiences of people most affected by their policies. The voices of women, African-Americans, Hispanics, representatives of consumer and labor shut out of key discussions in our economic future. The consequences of the economic crisis was not experienced uniformly among the various communities, with the much-vaunted recovery, never reaching certain segments. The unemployment rate among African-Americans currently stands at 9 percent, more than double the unemployment rate among whites is 4.3 percent. The Latino unemployment rate is 5.6%, worse than for white Americans. In a noticeable shift from its position a year ago, Yellen said, racial differences in the economic results of his opening speech at the Congress and stressed the importance of monitoring the different groups in the labour market, to see if what we perceived as a broad labor market improvement that they use. Source: CNBC.COM.