The Fed Doesn’t Need a New Mandate to Address Racial Justice
By Karen Petrou
Does the Federal Reserve need a “new racial justice mission”? Congressional Democrats introduced legislation this month to give the Fed a mandate to ensure racial and ethnic equality. But the Fed is already charged with lifting all boats, including those most deeply mired in economic mud. The problem isn’t the law—it’s the Fed, which reads its existing dual mandate far too narrowly. To address racial equity, the Fed need only honor the economic-equality mandate to which it is already bound.