Source: United States Senator for New Jersey Bob Menendez
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Committee on Banking, Housing, and Urban Affairs, today led members of the Congressional Hispanic Caucus (CHC) in urging President Joe Biden to seize this historic moment to nominate a highly qualified Latino American to the Federal Reserve’s Board of Governors. The lawmakers emphasized how in the Fed’s 109-year history a Latino American has never served on the Board of Governors or as president of a regional Federal Reserve Bank, despite being the fasted-growing demographic group with a $2.8 trillion economic output.
“As you consider nominees to fill the vacancy on the Federal Reserve Board of Governors, we strongly urge the Administration to nominate a qualified Latino candidate to fill this position,” wrote the group of 34 Latino lawmakers to President Biden. “Despite being the United States’ largest and fastest-growing minority population, Latinos have been persistently underrepresented at the Federal Reserve.”
In the letter, the lawmakers highlighted that only five percent of the Fed’s overall workforce identifies as Hispanic or Latino. While diversity among Class C directors appointed by the Board of Governors has increased in recent years, Class A Directors remain 80% white and 64% male, and Class B is 53% male and 61% white, with only a single Latino.
“The current leadership of the Federal Reserve System does not reflect the country that it serves, and failure to nominate a Latino to the Board of Governors in light of this new vacancy will only perpetuate this continued injustice,” added the lawmakers. “We cannot continue to overlook opportunities to give the over 62 million Latinos in our country – who account for $2.8 trillion of GDP – a voice in the Federal Reserve.”
Joining Sen. Menendez in signing the letter are Sens. Ben Ray Luján (D-N.M.), Alex Padilla (D-Calif.), and Catherine Cortez Masto (D-Nev.), alongside Reps. Pete Aguilar (D-Calif.-33), Nydia Velázquez (D-N.Y.-07), Joaquin Castro (D-Texas-20), Sylvia García (D-Texas-29), Adriano Espaillat (D-N.Y.-13), Jesús G. “Chuy” García (D-Ill.-04), Juan Vargas (D-Calif.-52), Ruben Gallego (D-Ariz.-03), Henry Cuellar D-Texas-28), Delia Ramírez (D-Ill.-03), Rob Menendez (D-N.J.-08), Nanette Barragán (D-Calif.-44), Vicente Gonzalez (D-Texas-34), Tony Cárdenas (D-Calif.-29), Ritchie Torres (D-N.Y.-15), Raúl Grijalva (D-Ariz.-07), Darren Soto (D-Fla.-09), Veronica Escobar (D-Texas-16), Jimmy Gomez (D-Calif.-34), Grace Napolitano (D-Calif.-31), Norma Torres (D-Calif.-35), Robert García (D-Calif.-42), Linda Sánchez (D-Calif.-38), Raul Ruiz, M.D. (D-Calif-25), Lori Trahan (D-Mass.-03), Salud Carbajal (D-Calif.-24), Jim Costa (D-Calif.-21), Teresa Leger Fernandez (D-N.M.-03), Andrea Salinas (D-Ore.-06), and Yadira Caraveo (D-Colo.-08).
Sen. Menendez and many members of the CHC have championed the fight to address diversity issues in the financial services industry and amongst financial regulators and, in particular, at the Federal Reserve. Last December, the Senator and then-CHC Chair Raul Ruiz, M.D. led a bicameral effort urging the Federal Reserve Bank of Kansas City to appoint a Latino President. When the Federal Reserve Board of Governors failed to appoint a Latino as President of the Chicago Fed, the Senator criticized the Board of Governors for yet again forgoing an opportunity to give the Latino community a voice in an institution that makes far-reaching decisions about the economy.
Sen. Menendez has led multiple efforts on this subject with members of the CHC, including when the Fed was in the process of appointing a new president for the Boston and Dallas Federal Reserve Banks, and has asked about it at multiple committee hearings with Federal Reserve Chair Jerome Powell and Fed Vice Chair for Supervision Michael Barr. In addition, the Senator has suggested reforms to improve the transparency of the Federal Reserve Bank President and director selection processes.
Find a copy of the letter HERE and below.
Dear President Biden,
As you consider nominees to fill the vacancy on the Federal Reserve Board of Governors, we strongly urge the Administration to nominate a qualified Latino candidate to fill this position.
Despite being the United States’ largest and fastest-growing minority population, Latinos have been persistently underrepresented at the Federal Reserve. Only five percent of the Fed’s overall workforce identifies as Hispanic or Latino. The underrepresentation of Latinos is particularly stark in the Federal Reserve’s leadership; since its founding in 1913, the Federal Reserve has never had a Latino on its Board of Governors or a Latino regional bank president. The appointment of a qualified Latino candidate to the Board of Governors would be a critical step in bringing diverse perspectives to our nation’s central bank.
In the past two years, there have been four opportunities to appoint qualified Latino candidates to the Board of Governors. Unfortunately, at each of these opportunities, Latinos have been denied a seat at the table where critical economic decisions are made. The current leadership of the Federal Reserve System does not reflect the country that it serves, and failure to nominate a Latino to the Board of Governors in light of this new vacancy will only perpetuate this continued injustice.
We cannot continue to overlook opportunities to give the over 62 million Latinos in our country —who account for $2.8 trillion of GDP— a voice in the Federal Reserve. As members of the Congressional Hispanic Caucus, we strongly urge you to take advantage of this historic opportunity to fill the vacant seat on the Board of Governors with a qualified Latino.
Sincerely,
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