Jerome H Powell: Brief remarks
Speech (via prerecorded video) by Mr Jerome H Powell, Chairman of the Board of Governors of
the Federal Reserve System, at the "Just Economy Conference", sponsored by the National
Community Reinvestment Coalition, Washington DC, 11 March 2019.
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Good evening, and thank you for inviting me to speak to you today.
The National Community Reinvestment Coalition (NCRC) and its member organizations are at
the forefront of an important conversation about how to ensure that low- and moderate-income
communities are fairly served by the banking industry. The work that you do to promote access
to basic banking services, affordable housing, and entrepreneurship opportunities supports the
Federal Reserve and other agencies that enforce fair lending laws. The large number and variety
of NCRC's local member organizations allow the NCRC to draw a detailed picture of how the
Federal Reserve's policies affect lower-income communities, and we deeply appreciate the
information that you share with us and the work that it represents.
As you know all too well, the current strength of the overall economy masks the struggles many
individuals and families face in lower-income urban and rural communities. Low- and
moderateincome homeowners saw their wealth stripped away as home values dropped during the
financial crisis and have not recovered as quickly or completely as others. Because home equity
has been the main source of wealth among low- and moderate-income people, the crisis dealt a
particularly severe blow to these households. Most Americans rely on home equity to send their
children to college, invest in their own education and training, or start or grow a business. These
aspirations are the basis upon which a strong economy is built. That is why your work as NCRC
member organizations offering financial counseling, homeownership education, and technical
assistance for small businesses is as important as ever.
When lower-income individuals and families struggle, it harms their health and well-being and
also weakens our economy. When people are connected to education, training, and other
resources that help them secure good jobs and other opportunities, they are better prepared to
care for themselves and their families and contribute to a strong economy.
The Federal Reserve has an extensive community development function, related to our
responsibilities under the Community Reinvestment Act (CRA), that promotes partnerships
between banks and community organizations to address local community and economic
development needs. As you know, the CRA requires federal banking regulators-the Federal
Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance
Corporation-to encourage banks to help meet the credit needs of the communities they are
chartered to serve, including low- and moderate-income neighborhoods. To complement the
work we do with the other regulators to write regulations and guidance implementing CRA, the
Federal Reserve System's community development staff help banks understand and meet their
responsibilities under the law. Fed staff members also act as liaisons between banks and
community organizations to identify local community development needs and solutions.
I know that you all are very interested in the agencies' activities related to possible revisions to
the current CRA regulations. My colleague, Governor Brainard, who represents the Board in our
interagency CRA discussions, will be speaking to you tomorrow, so I will leave it to her to
discuss our efforts in detail. But I do want to express my support for an interagency effort to
revise the regulations to promote clarity and consistency in our evaluations of banks, particularly
in light of the changes in the way bank products and services are delivered. We value the CRA's
role in meeting the credit needs of low- and moderate-income neighborhoods and want to be
very careful that any revisions serve to strengthen the CRA's purpose.
I commend your dedication to ensuring that all Americans have fair access to the economic
opportunities that our nation offers. I hope you have a productive conference, and I look forward
to our ongoing conversation about how the Federal Reserve can help.