FedUp Report Argues that the Federal Reserve Should Create Race-Neutral Economic Policy

In The New York Times, Binyamin Applebaum, Upshot columnist, reports on a study conducted by the Center for Popular Democracy, a liberal advocacy group, and the Economic Policy Institute, a liberal think tank. The study points out that economic policy can create policy that disproportionately effects African American workers. For instance,

“The unemployment rate for black workers rose faster during the Great Recession and, over the last five years, it has receded more slowly.

The rate for black workers remains 1.3 percentage points higher than on the eve of the recession in December 2007, while for white workers it is 0.5 points higher.

Black workers have also suffered twice as large a reduction in median hourly wages: down 3.6 percent for black workers; 1.7 percent for white workers.”

The study recommends: “The Federal Reserve needs to craft monetary policy that tightens the labor market sufficiently so that all Americans, and African-Americans in particular, have an opportunity to benefit from the shared prosperity that a full-employment economy provides.”

To read the full study, click here.

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