The Fed must address the penalties for ‘banking while black’
By Karen Petrou
The Fed could take concrete actions to address the fact that monetary policy now benefits primarily the wealthy. When US Federal Reserve chairman Jay Powell testified last week before Congress, senior Democrats demanded that the central bank adopt an affirmative action plan to combat systemic racism and economic inequality. Mr Powell demurred, promising only to talk to his colleagues. He warned that such concerns were the domain of fiscal authorities, not him. While fiscal policy indeed can and should do more, the US central bank is in no way toothless to address the challenges of our time. The Fed could take concrete actions to address the fact that monetary policy now benefits primarily the wealthy. And there are easy regulatory solutions readily at hand to make a swift and dramatic difference. First, the Fed and the other US banking agencies must ensure that “banking while black” is bearable.
https://www.ft.com/content/fb71926e-85bc-49c3-a738-308d0a782c8b