Congress has proposed the Federal Reserve Racial and Economic Equity Act to tackle racial economic inequality.
Congressional Democrats introduced the new legislation last month. Uniquely, the equity act would mandate the Federal Reserve “to minimize and eliminate racial disparities in employment, wages, wealth and access to affordable credit.”
Ultimately, if successful, the equity act would be the first major change to the central bank’s mandate since 1977.
Bridging Racial Economic Gaps
White unemployment rates stood at 3.1% in January, while Black unemployment rates were almost double at 6.0%. Notably, the COVID-19 pandemic increased unemployment rates significantly. Presently, Black and Hispanic citizens bear the brunt of the current recession.
Democratic Presidential n…