Congresswoman Beatty Introduces Legislation to Help Increase Diversity at Federal Reserve
Congresswoman Beatty Introduces Legislation to
Help Increase Diversity at Federal Reserve
No African-American or Latino has ever served as president of a Federal Reserve Regional Bank
WASHINGTON, DC – U.S. Congresswoman Joyce Beatty (OH-03) recently introduced the Ensuring Diverse Leadership at the Federal Reserve Act of 2016, H.R. 6225. The bill does not impose a hiring requirement, but rather stipulates that at least one woman and an individual of a racial or ethnic minority must be interviewed when there is a vacancy among the Federal Reserve Regional Bank presidents. Financial Services Committee Ranking Member Maxine Waters (CA-42), Congressman John Conyers (MI-13), Congressman David Scott (GA-13) and Congressman Patrick Murphy (FL-18) are lead cosponsors of H.R. 6225.
“We need a Federal Reserve that is more reflective of our nation,” Beatty said. “It is unacceptable that in 2016 no African-American or Latino has ever held the position of Federal Reserve Regional Bank President. Similarly, it is stunning to me that only six women have ever served in this role in the Fed’s 103-year history.” Beatty continued, “To build a stronger economy, we need the talents, skills and expertise of men and women that diversity offers—the ‘Beatty Rule’ will do just that.”
H.R. 6225 is modeled after the National Football League’s (NFL) “Rooney Rule,” which was instituted in 2003 to increase diversity among top positions in the League. Under the Rooney Rule, at least one minority must be considered for any head coach and general manager vacancy. In the 12 years before the Rule went into effect, the NFL had only six non-white head coaches; since, the league has added 14 head coaches of color.
Established in 1913, over the course of the Federal Reserve’s existence, there have been 134 different presidents of Regional Banks. Of those 134 presidents, not one has been African-American or Latino—with the first non-white president not occurring until 2009. Currently, eight of the twelve Federal Reserve Regional Banks have never had a woman president, and only six women have ever served in the role. The first woman did not become Regional Bank President until 1982.
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