Congressional Democrats who had complained that the Federal Reserve system is too male and white praised the Federal Reserve Bank of Atlanta for selecting Raphael Bostic, a black University of Southern California economist, as its new president on Monday.
Sen. Sherrod Brown, the top Democrat on the Senate Banking Committee, said Bostic’s appointment “is an historic step forward that is long overdue. In its century of existence, the Fed’s ranks have lacked the kind of diversity — of race, gender, background and ideas — that reflects the wide spectrum of Americans’ experiences and economic realities.”
Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, also issued a statement applauding the appointment of Bostic as the first black and first openly gay regional Fed president.
“Given the disparate economic experiences faced by key demographic groups, it is crucial that a broader cross-section of groups have a seat at the decision-making table,” Waters said.
Waters was one of the lawmakers who sent a letter to the Fed last year detailing the lack of diversity at the Fed and calling for Fed leadership to increase the representation of minorities at the central bank.
While senators vote on appointments to the Fed’s Board of Governors in Washington, Congress has no direct role in approving regional bank presidents.
Regional bank directors select presidents, who are then approved by the Board of Governors. Some Democrats, such as former House Financial Services Committee Chairman Barney Fank, have called to limit the role of the 12 regional bank presidents in setting monetary policy or to make them more accountable to Congress.
