You can watch live here: banking.senate.gov/hearings/06/08…
Systemic racism in our financial system must be taken account for AND addressed in order to have a economic recovery for ALL Americans for #COVID19.
That contrast has never been clearer"
Some are all too giddy to bailout Wall Street, but bashful about providing relief for Main Street. Where's that energy now?
Chair Powell notes Main Street facility opened for lender registration yesterday. Says they are soliciting comment on the nonprofit loans.
"Do you think Dr. Spriggs is correct that the US has failed to grapple with the fact that much of economic inequality is a direct result of institutional racism?"
Powell: "Economics discipline has a troubled history"
asks Powell if he will commit to a study of how the Fed's policies contribute to systematic racism?
Powell: "I'll take that away and think about it and talk to my colleagues about it"
Brown asks "is the Fed one of the institutions responsible for the unequal outcomes Black & brown workers face?"
Powell: "There is no doubt more all of us can do"
Powell: "A tight job market is probably the best single thing that the Fed can do to support gains by all low and moderate income communities..."
Powell: "State & local govts amount to something like 13% of the labor force. If states are in tight financial straits, they will cut essential services & lay people off, and all of that will weigh on economy"
Powell: "This is something we said we would do"
Powell: "Market function has improved. It was out of an excess of caution to preserve these gains for market function by following through. We don’t want to be like an elephant running through the bond market.”
Powell: "I think the answer to that is no."
Warren: "White unemployment fell to 12.4% while Black unemployment rose to 16.8%"
Powell: "I think that's a longer-run weakness in our economy"
Powell: "If people get evicted or foreclosed on, even their ability to get back into the labor market is challenging"
She talks about the importance of the proposal for $100 billion in rental assistance.