One of the leading contenders to serve as President-elect Trump’s Treasury secretary said that diversity, equity and inclusion (DEI) and similar policies are a distraction for the Federal Reserve from its primary mission — promoting maximum employment and price stability.
Kevin Warsh, a former member of the Federal Reserve’s Board of Governors, was asked in a recent interview on FOX Business Network’s “Kudlow” about whether efforts by the White House and Senate Democrats to influence the Fed to focus on advancing DEI and combating racial injustice through monetary policy.
“I’m afraid I have to say yes,” Warsh responded. “It bothers me, the Fed’s an important institution, the institution doesn’t need to be like this. It might be a coincidence, but over the last several years, as they’ve wandered into these areas which are fads, which are trends, that’s when we see inflation spike.”
Warsh also said that central bankers should be “wary” of “resisting” fads.