Federal Reserve Racial and Economic Equity Act

Federal Reserve Racial and Economic Equity Act

This bill requires the Federal Reserve Board to carry out its duties in a manner that supports the elimination of racial and ethnic disparities in employment, income, wealth, and access to affordable credit. The board must report on disparities in labor force trends as well as on plans and activities of the board to minimize and eliminate these disparities.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2257 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2257

    To amend the Federal Reserve Act to add additional demographic 
  reporting requirements, to modify the goals of the Federal Reserve 
                    System, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 12, 2023

 Ms. Warren (for herself, Mr. Blumenthal, Mr. Markey, Mr. Van Hollen, 
 Mrs. Feinstein, Mr. Warnock, Mr. Reed, Mr. Sanders, Ms. Cortez Masto, 
and Mr. Brown) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Reserve Act to add additional demographic 
  reporting requirements, to modify the goals of the Federal Reserve 
                    System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Racial and Economic 
Equity Act''.

SEC. 2. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.

    The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by 
inserting after section 2B the following:

``SEC. 2C. DUTY TO MINIMIZE AND ELIMINATE RACIAL DISPARITIES.

    ``The Board of Governors of the Federal Reserve System and the 
Federal Open Market Committee shall exercise all duties and functions 
in a manner that fosters the elimination of disparities across racial 
and ethnic groups with respect to employment, income, wealth, and 
access to affordable credit, including actions in carrying out--
            ``(1) monetary policy;
            ``(2) regulation and supervision of banks, thrifts, bank 
        holding companies, savings and loan holding companies, and 
        nonbank financial companies and systemically important 
        financial market utilities designated by the Financial 
        Stability Oversight Council;
            ``(3) operation of payment systems;
            ``(4) implementation of the Community Reinvestment Act of 
        1977;
            ``(5) enforcement of fair lending laws; and
            ``(6) community development functions.''.

SEC. 3. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.

    Section 2B of the Federal Reserve Act (12 U.S.C. 225b) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) economic developments and prospects for the 
                future described in the report required in subsection 
                (b), including a discussion of disparities in 
                employment, income, and wealth across racial and ethnic 
                groups as well as other specific segments of the 
                population; and
                    ``(C) plans, activities, and actions of the Board 
                and the Federal Open Market Committee to minimize and 
                eliminate disparities across racial and ethnic groups 
                with respect to employment, wages, wealth, and access 
                to affordable credit pursuant to section 2C.''; and
            (2) in subsection (b)--
                    (A) by striking ``The Board'' and inserting the 
                following:
            ``(1) In general.--The Board''; and
                    (B) by adding at the end the following:
            ``(2) Trend information.--
                    ``(A) In general.--Each report required under 
                paragraph (1) shall include recent trends in the 
                unemployment rate, labor force participation rate, 
                employment to population ratio, median household 
                income, and change in real earnings.
                    ``(B) Demographic information.--The trends required 
                to be reported under subparagraph (A) shall include a 
                comparison among different demographic groups, 
                including race (White, African-American, Latino, Native 
                American, and Asian populations), ethnicity, gender, 
                and educational attainment.''.
                                 <all>