[Congressional Record Volume 169, Number 32 (Thursday, February 16, 2023)]
[Senate]
[Page S459]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Brown, Ms. Warren, Mr. Van Hollen, 
        Mr. Booker, Mr. Whitehouse, Ms. Baldwin, Mr. Padilla, Mr. 
        Merkley, and Mr. Casey):
  S. 496. A bill to amend the Federal Reserve Act to reaffirm the 
importance of workers; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. REED. Madam President, I am joined by Senators Brown, Warren, Van 
Hollen, Booker, Whitehouse, Baldwin, Padilla, and Merkley in 
reintroducing the Respect for Workers Act, a bill that would ensure 
that at least one Federal Reserve Governor has demonstrated primary 
experience in supporting or protecting the rights of workers.
  Today, the Federal Reserve is attempting to curb inflation without 
plunging the economy into a recession. Over the past year, it has 
increased the Federal funds rate by 4\1/2\ percentage points to cool 
the economy and ease prices--its fastest pace of rate hikes since the 
early 1980s. But this is a difficult balancing act. If the Federal 
Reserve does not get its policies right, it may fail to defeat 
inflation or drive us into a recession. Workers would bear the brunt of 
the economic fallout attached to either outcome through higher prices 
or higher unemployment.
  Arguably no group is more affected by the Federal Reserves efforts to 
meet its dual mandate to promote stable prices and maximum employment 
than workers. But, while the law requires the Federal Reserve Board of 
Governors to represent diverse geographic regions and a wide array of 
commercial interests, no Federal Reserve Governor is required to have a 
background in protecting the interests of workers. Indeed, while the 
interests of Wall Street, nonbank financial institutions, and big 
business have long been well-represented on the Board, everyday working 
men and women have not been given the same voice in monetary 
policymaking.
  Our bill fills this hole by requiring at least one Federal Reserve 
Governor has experience addressing the challenges facing workers. This 
is not a new concept. In fact, our bill is modeled on the 2015 law that 
requires at least one of the seven Federal Reserve Governors to be an 
individual ``with demonstrated primary experience working in or 
supervising community banks.''
  In short, the Respect for Workers Act would ensure workers' economic 
needs are represented at the Federal Reserve. It would build a 
stronger, more representative Board of Governors and promote a 
healthier economy.
  I thank the AFL-CIO, Groundwork Collaborative, National Employment 
Law Project, MIT Professor and Former International Monetary Fund Chief 
Economist Simon Johnson, and Georgetown Law Professor Adam Levitin for 
their support and urge our colleagues to join in pushing to enact this 
legislation.
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