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U.S. Reps. Ayanna Pressley and Yvette Clarke are demanding that the Federal Reserve Board take “immediate action” to address the alarming spike in the Black unemployment rate. They are requesting that the Fed board brief members of the Congressional Black Caucus on the matter, theGrio exclusively reports.
In a letter to Fed Chairman Jerome Powell, first obtained by theGrio, Pressley of Massachusetts and Clarke of New York, who is chairwoman of the Congressional Black Caucus, described the latest 8.3% joblessness rate among Black Americans as a “crisis” and placed the blame squarely on President Donald Trump‘s policies.
“The alarmingly high rates of unemployment in the Black community are a glaring red flag with negative implications for the broader economy,” said the two congresswomen. “It is critical that you take immediate action to fulfil the statutory mandate to promote maximum employment for all people, of all races and genders.”
The Federal Reserve, established by Congress in 1913, is the nation’s central banking system that sets monetary policy independently, with the intent of avoiding financial crises.
Citing their authority of Congressional oversight, the two U.S. representatives requested a briefing from the Federal Bank to discuss “high unemployment and solutions for the Black community and our nation.”
Despite President Trump touting a positive outlook for the U.S. economy in his Wednesday night address to the nation, millions of Americans remain financially strained–most especially Black Americans. Since Trump took office in January, the unemployment rate for Black workers has steadily increased, some of which was a result of Trump’s purge of the federal workforce and dismantling of diversity, equity, and inclusion, or DEI.
According to a report for the Center for American Progress, Trump’s economic policies, including his global tariffs on foreign trade, are disproportionately hurting Black Americans and Black businesses, which have a higher rate of job creation for Black workers.
Pressley and Clarke’s letter cites U.S. Census data that Black workers make 20% less than white workers, contributing to the racial wealth gap, and that the median Black family has a net worth of $24,520 compared to $250,400 for the median white family.
Noting Fed Chair Powell’s own writing about the issue, the letter warns, “the increase in the unemployment rate widens existing disparities between labor market outcomes and results in increasing income inequality.”
The lawmakers noted that the Federal Reserve Board of Governors and regional banks could take a range of actions to address economic concerns, including expanding lending programs for small businesses and non-profits and publishing recommendations for labor force participation.
“It is not enough to simply analyze; there needs to be action,” said Pressley and Clarke. “We again urge the Federal Reserve to ensure a fair economy that works for all, regardless of race and gender, in the face of fiscally irresponsible policies from the White House.
“The Federal Reserve must comprehensively analyze the impact of Black workers’ job losses and develop a strategic plan to confront this crisis,” the congresswomen added. “For Black families throughout our nation, gainful employment is a necessary key to unlock opportunity and prosperity.”
The latest request to the Federal Reserve comes after months of Congresswoman Pressley, a member of the House Financial Services Committee and a frequent sponsor of racial justice legislation, urging Chair Powell to take action to address the sharp increase in unemployment for Black women, who lost more than 300,000 jobs this year.
“The Trump Administration is harming the economy by causing the labor market to lose the wealth of knowledge, innovation, and skill that Black women have contributed to this nation,” wrote Pressley. “It is incumbent upon the Federal Reserve to adjust its approach to ensuring a fair economy in the face of fiscally irresponsible policies from the White House.”
