Democratic presidential candidate former Vice President Joe Biden speaks at a campaign event in Wilmington, Del., Tuesday, July 28, 2020. This week, the Biden campaign released its fourth and final plank in the former Vice President’s package of economic ideas: a plan for racial economic equity . It’s a 26-page rundown of policies ranging from a plan to boost small businesses to a first-time homebuyer tax credit.
But contained in the plan was a less-flashy proposal: asking the Federal Reserve to explicitly take race into account when it sets policy.
“Within its existing mandate of promoting maximum employment and stable prices, the Fed should aggressively enhance its surveillance and targeting of persistent racial gaps in jobs, wages, and wealth,” the Biden plan says.
What the Biden team is proposing isn’t a total overhaul of monetary policy; rather, it’s more of a refocusing of the Fed’s attention onto America’s wide racial economic gaps, as well as making sure that the Fed talks about those gaps.
Monetary policy isn’t known for targeting particular subgroups, however — the Fed’s main tools are more sledgehammers than scalpels. It’s possible that the policy could play a part in shrinking gaps considerably, but there is some dispute over how […]
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