By Karen Petrou
- The lack of racial equity in U.S. monetary and regulatory policy is only part of the problem. Inclusive policy must reach all groups – including persons with disabilities – now overlooked by the Fed and thus left behind by the U.S. economy.
- The Fed’s monetary policy mandate in current law is already inclusive, but unmet and unenforced. Fixing that by legislation may focus the Fed’s attention with better data, but data aren’t enough.
- Inclusive financial policy effectively reaches all under-served groups via equality-focused financial regulation and ground-up – not trickle-down monetary policy. The Fed is already a fiscal agent via its huge asset purchases, but this is the opposite of inclusive policy due to its direct and unequal wealth impact. Inclusive policy realigns monetary and regulatory accountability, but does not replace it with a still greater fiscal presence.