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Federal Reserve under growing pressure to reform system, goals

Other News Materials 23 August 2016 03:10 (UTC +04:00)
The U.S. Federal Reserve has two guiding goals when designing monetary policy: maximum employment and stable inflation
Federal Reserve under growing pressure to reform system, goals

The U.S. Federal Reserve has two guiding goals when designing monetary policy: maximum employment and stable inflation, Reuters reported.

But as the country's central bankers converge for their annual symposium in Jackson Hole, Wyoming this week, they are under increasing pressure to reform their own system and goals to better reflect the diversity of America and its incomes.

At this year's flagship economic policy conference, from Aug. 25 to 27, U.S policymakers will confer not only with their counterparts from around the world but also host a meeting on Thursday with a group calling for a radical overhaul of the Fed.

Fed Up, a network of community organizations and labor unions that wants a more diverse, transparent and income-inequality aware central bank, will meet with Kansas City Fed President Esther George.

It may be one reason why the organizers changed the dress code for the evening, usually a suited and booted affair, to casual attire.

So far three other Fed policymakers, New York's William Dudley, Cleveland's Loretta Mester and Boston's Eric Rosengren, are also scheduled to show up.

A Fed spokesman said Federal Reserve Governor Lael Brainard from the Washington-based Board of Governors also plans to attend the meeting.

The activists will look to build on their proposals, put forward in conjunction with former top Fed policy adviser Andrew Levin, to make the Fed's 12 regional banks government entities. The Fed is the world's only major central bank that is not fully public.

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