Powell’s Fed on Defensive as Diversity Effort Comes Under Fire
(Bloomberg) -- Donald Trump’s offensive against diversity, equity and inclusion programs is putting the US central bank in an uncomfortable squeeze. And so far, the Federal Reserve and its chair, Jerome Powell, appear to be falling in line with the president.
After Trump issued an executive order on Jan. 20 ending DEI programs across the federal government, the Fed took down pages on its website dedicated to diversity and inclusion, as did several of the central bank’s regional outposts. This week, the Dallas Fed backed out of plans to host an event for the Greater Houston LGBTQ+ Chamber of Commerce.
The apparent shift comes despite clear declarations from the Fed in recent years extolling the value of diversity at the central bank, and a requirement under the 2010 Dodd-Frank Act for the Fed and other federal financial bodies to pursue gender and racial diversity within their organizations. A Fed spokesperson said the central bank continues to comply with that law and others governing equal employment.
In his order, Trump called DEI “illegal and immoral discrimination.” But for DEI proponents, the Fed’s recent moves put at risk not only its efforts to diversify its workforce but also to better understand how its policies impact all Americans. It may also set a precedent of caving in to Trump’s pressures.
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Source : https://finance.yahoo.com/news/powell-fed-defensive-diversity-effort-110000299.html