Conservatives torched the Associated Press for lauding diverse leadership at the Federal Reserve as the economy suffers.

The outlet published an article — “Fed tackles inflation with its most diverse leadership ever” — following the central bank’s annual summit in Jackson Hole, Wyoming, at which Federal Reserve Chair Jerome Powell doubled down on policymakers’ commitment to battle runaway inflation. Among other changes, three women and three African-Americans have recently joined the 19-member committee responsible for determining interest rate policies.

“There are more female, Black and openly gay officials contributing to the central bank’s interest-rate decisions than at any time in its 109-year history,” the AP reported. “Many are also far less wealthy than the officials they have replaced. Over time, economists say, a wider range of voices will deepen the Fed’s perspective as it weighs the consequences of raising or lowering rates. It may also help diversify a profession that historically hasn’t been seen as particularly welcoming to women and minorities.”

Meanwhile, the United States met the rule-of-thumb definition of a recession — two consecutive quarters of negative growth — last month as the economy shrank at a 1.5% annualized rate in the first quarter and contracted at a 0.6% pace in the second quarter.

“Well, they’re doing a bang-up job,” Daily Wire Editor Emeritus Ben Shapiro remarked, noting that “stupid people” would make the argument, “Sure, inflation is at a 40-year-high, but doesn’t it make you feel better that those in charge are sexually and ethnically diverse?”

“Finally a compelling explanation for why our economy is doing so well,” Blake Masters, the Republican nominee for Arizona’s open seat in the Senate, remarked.

“Perhaps the Fed should care more about the disaster that is the U.S. economy and far, far less about having ‘more female, Black and gay officials’ at the helm?” Mollie Hemingway, editor-in-chief of The Federalist, commented.

“Inflation is the worst it’s been in decades while the Federal Reserve is the most diverse it has ever been. This… is not an argument in favor of more diversity,” Daily Wire commentator Matt Walsh added.

According to the Bureau of Labor Statistics, year-over-year inflation reached 8.5% in July 2022, with a slight moderation from the 9.1% reading in the previous month driven by lower energy prices — even as costs for food, new vehicles, medical care, and shelter continue to rise. Powell said at Jackson Hole that the Federal Reserve still intends to reduce inflation to 2% — the rate maintained by policymakers for most of the past three decades.

“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,” Powell said. “Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. The burdens of high inflation fall heaviest on those who are least able to bear them.”

Powell warned that the Federal Reserve’s contractionary monetary policy would induce economic headaches as borrowing costs rise for consumers and businesses. Officials announced interest rate hikes of 0.75% twice in the past two months such that rates are currently pegged between 2.25% and 2.5%.

President Joe Biden has emphasized a “total transformation of government” centered upon diversity, equity, and inclusion — a policy that has impacted appointment decisions.

Treasury Secretary Janet Yellen, for instance, tapped her department’s first “counselor for racial equity” at the end of last year. “The American economy has historically not worked fairly for communities of color,” Yellen argued. “The pandemic threw a spotlight on this inequity; people of color were often the first to lose their jobs and businesses.”

Source: Dailywire

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