Joe Biden has praised a legislature that was passed in the US House of Representatives that would include racial equality to the Federal Reserve’s two objectives of keeping inflation under control and providing employment.
The Federal Reserve would be required to perform monetary policy and other responsibilities in a way that reduces ethnic and racial disparities, according to this bill.The editorial board of The Wall Street Journal praised the bill, noting that it is consistent with the Federal Reserve’s recent shift to become more aware. Several members of the Federal Open Market Committee (FOMC) have already called for “inclusive” employment.
In other words, the passage of this legislation would make racial equity an essential component of the Fed’s mission. The Board of Governors and FOMC are directed to “perform all duties and functions in a manner that promotes the reduction of gaps between racial and ethnic groups with respect to employment, wealth, income, and access to credit.”
The legislation also directs the Fed to consider as part of its monetary policy, payment operations, and bank and non-banking entity supervision issues that the Financial Stability Oversight Council recognizes as vital.
The Fed’s turnaround may open the floodgates to all kinds of strange policies. It will, for example, almost certainly encourage unsavory lending methods like those employed during the early 2000s, when individuals with terrible credit and financial history were given loans and mortgages they would never be able to repay.
You have a recipe for all sorts of economic mayhem once you combine the Federal Reserve’s easy money policy with it.
Theoretically, the Federal Reserve should be abolished, and a competing currency ecosystem should be permitted to develop in its place.
Meanwhile, the hurtful effects of woke toxicity should be removed from the Federal Reserve. This toxin must be eradicated from our political system.