Toomey Expands Review of Woke Mission Creep by Regional Federal Reserve Banks
Demands Minneapolis, Boston, & Atlanta Fed Turn Over Docs on “Racial Justice” Activism
Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) is expanding his review of the increasing focus on politically-charged issues, like global warming and racial justice, by regional Federal Reserve Banks. He has requested briefings and documents from the Minneapolis, Boston, and Atlanta regional Federal Reserve Banks on their recent “racial justice” activism, an activity that is outside the bounds of the Fed’s mission and statutory mandate.
Pointing
to the regional banks’ joint ‘Racism and
the Economy’ series, Senator Toomey wrote in letters to regional
bank Presidents Neel Kashkari (Minn.), Eric Rosengren (Boston), and Raphael
Bostic (Atlanta):
“Of course, racism is abhorrent and has no
place in our society . . . . I recognize the interest in studying economic
disparities along demographic lines, such as race and gender. However, this
subject matter is fraught with ideological assumptions and interpretations, and
the work and analysis of the [Minneapolis/Boston/Atlanta] Fed seems heavily
laden with political and value judgments.”
As the Ranking Member noted, the Fed’s mission and statutory mandate is
nonpartisan, independent, and restricted to monetary and regulatory policy
duties. However, the Fed has recently been engaging in mission creep, devoting
federal resources to political advocacy.
“Whether
or not this is your personal view, I would remind you that only Congress has
the authority to reform the Federal Reserve or modify its statutory
mission. Moreover, I would caution you on the reputational damage being
inflicted on the [Minneapolis/Atlanta/Boston] Fed and the Federal Reserve as a
whole by pursuing a highly politicized social agenda unrelated to monetary
policy.”
Senator
Toomey first expressed
concern on the “sudden and alarming” shift by regional Federal
Reserve Banks towards work of a “bitterly partisan nature” in March, requesting
documents and a briefing from the San Francisco Fed.
The
Ranking Member’s letters to the Minneapolis,
Boston
and Atlanta
regional Fed banks request a number of documents by June 7, 2021, and briefings
no later than the week of June 7, 2021.
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