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 during a hearing entitled, “The Semiannual Monetary Policy Report to Congress,” emphasized to Federal Reserve Chair Jerome Powell the importance of securing Latino representation on the Fed’s Board of Governors. Several of the Senator’s colleagues echoed his point on the importance of having Latino representation on the Fed’s Board of Governors. Sen. Menendez also asked Chair Powell about the catastrophic effects a potential debt default would have on the national economy.
“Mr. Chairman, I want to take this moment to remind my colleagues that there are more than 62 million Latinos that call the United States home. We are the largest minority group in the country. We account for nearly 20 percent of the U.S. population, and contribute almost $3 trillion dollars in GDP,” said Sen. Menendez. “Yet, Latinos have no representation in the Federal Reserve’s leadership. In the 109-year history of the Federal Reserve, there has never, never, been a single member of the Board of Governors or regional bank president who has the lived experience of being Latino in the United States.”
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The Senator highlighted that by Latinos not having a seat in the Fed’s senior leadership they are repeatedly drowned out when the Fed is making critical decisions on economic policy that can affect whether a Latino family can afford their first home, find a job that pays a living wage, save for a comfortable retirement, or get a loan to expand their business.
“Right now, the Biden Administration has a clear opportunity to make history with its next nomination to the Board of Governors. It has identified a number of highly-qualified Latino candidates who have dedicated their careers to the field of economics, who are committed to the Fed’s dual mandate, and who will preserve the independence of the central bank,” added the Senator. “The Administration has rightly nominated and advocated for a number of diverse candidates with similar qualifications, both at the Fed and elsewhere. But despite having five opportunities over the past two years to nominate a qualified Latino economist to serve at the Federal Reserve, this Administration has repeatedly chosen not to. Representation – or lack thereof – does not happen by accident. It is a choice. And I hope the Administration makes the right choice with this nomination.”
Sen. Menendez has long championed the fight for greater diversity in the financial services industry, amongst financial regulators and, in particular, at the Federal Reserve. A few weeks ago, the Senator led thirty-three members of the Congressional Hispanic Caucus in urging President Joe Biden to seize the historic opportunity to nominate a highly qualified Latino American to the Fed’s Board of Governors. In this effort, the Senator and his colleagues emphasized how in the institution’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 largest minority group with a $2.8 trillion economic output.
Last December, the Senator 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 over the last few years on this issue, including when the Fed was in the process of appointing a new president for the Boston and Dallas Federal Reserve Banks. He has also asked about it at multiple committee hearings with Fed Chair 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.
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