Federal Reserve Mandate
Senior Democrats in both the House and Senate have introduced legislation that turns a general call for a “racial-equity mandate” in campaign statements by Vice President Biden into an express directive to conduct monetary, regulatory, payment system, and other policy to reduce racial and ethnic economic disparities.  This could create a new monetary-policy mandate that could significantly alter the Fed’s focus, especially if the mandate forced attention on heterogeneous, distributional data instead of the representative-agent (i.e., average and aggregate) data on which policy is now largely premised.