Hillary Clinton just endorsed serious Federal Reserve reform
Hillary Clinton embraced an ambitious proposal for reforming the Federal Reserve on Wednesday, according to a statement her campaign gave to The Washington Post.
Five of the 12 Fed officials who decide the course of monetary policy at the national level are selected by six of the nine governors that run each regional bank in the Federal Reserve system. Three of those six governors are effectively picked by the banking industry in each region. The three who don't pick the officials for the national Fed board are drawn directly from the banking industry, but they still wield considerable influence.
Leftwing reform campaigns have argued for removing the financial industry's influence in the Fed system, and that's what Clinton endorsed. "Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue," said campaign spokesman Jesse Ferguson.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
This effectively puts Clinton in the same ballpark as Bernie Sanders on the issue. It also arrives the same day 111 representatives in the House and 11 senators — including Elizabeth Warren — released a letter calling for more diversity among Fed officials. Those officials are overwhelmingly white men, and the letter noted that racial minorities are disproportionately affected when the Fed prioritizes low inflation over high employment.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
The growing US movement to end child marriages
Under the Radar Practice is 'surprisingly widespread' but only 12 states have so far banned it
By Harriet Marsden, The Week UK Published
-
'New arrivals are more than paying for themselves'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
6 stylish homes in Portland, Oregon
Feature Featuring a wall of windows in Collins View and a historic ballroom in Portland Heights
By The Week US Published
-
Ukraine cheers House approval of military aid
Speed Read Following a lengthy struggle, the House has approved $95 billion in aid for Ukraine and Israel
By Peter Weber, The Week US Published
-
Poland, Germany nab alleged anti-Ukraine spies
Speed Read A man was arrested over a supposed Russian plot to kill Ukrainian President Zelenskyy
By Peter Weber, The Week US Published
-
Israel hits Iran with retaliatory airstrike
Speed Read The attack comes after Iran's drone and missile barrage last weekend
By Peter Weber, The Week US Published
-
Peter Murrell: Sturgeon's husband charged over SNP 'embezzlement' claims
Speed Read SNP expresses 'shock' as former chief executive rearrested in long-running investigation into claims of mishandled campaign funds
By Arion McNicoll, The Week UK Published
-
Mark Menzies: Tories investigate MP after 'bad people' cash claims
Speed Read Fylde MP will sit as an independent while party looks into allegations he misused campaign funds on medical expenses and blackmail pay-out
By Arion McNicoll, The Week UK Published
-
Why Johnson won't just pass Ukraine aid
Speed Read The House Speaker could have sent $60 billion in military aid to Ukraine — but it would have split his caucus
By Peter Weber, The Week US Published
-
Sudan on brink of collapse after a year of war
Speed Read 18 million people face famine as the country continues its bloody downward spiral
By Peter Weber, The Week US Published
-
Trump's first criminal trial starts with jury picks
Speed Read The former president faces charges related to hush money payments made to adult film star Stormy Daniels
By Peter Weber, The Week US Published