Federal Reserve Racial and Economic Equity Act

To amend the Federal Reserve Act to add additional demographic reporting requirements, to modify the goals of the Federal Reserve System, and for other purposes. 1. Short title This Act may be cited as the Federal Reserve Racial and Economic Equity Act 2. Duty to minimize and eliminate racial disparities The Federal Reserve Act ( 12 U.S.C. 221 et seq. 2C. Duty to minimize and eliminate racial disparities The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall exercise all duties and functions in a manner that fosters the elimination of disparities across racial and ethnic groups with respect to employment, income, wealth, and access to affordable credit, including actions in carrying out— (1) monetary policy; (2) regulation and supervision of banks, thrifts, bank holding companies, savings and loan holding companies, and nonbank financial companies and systemically important financial market utilities designated by the Financial Stability Oversight Council; (3) operation of payment systems; (4) implementation of the Community Reinvestment Act of 1977; (5) enforcement of fair lending laws; and (6) community development functions. . 3. Appearances before and reports to the Congress Section 2B of the Federal Reserve Act ( 12 U.S.C. 225b (1) in subsection (a)(1)— (A) in subparagraph (A), by striking and (B) by striking subparagraph (B) and inserting the following: (B) economic developments and prospects for the future described in the report required in subsection (b), including a discussion of disparities in employment, income, and wealth across racial and ethnic groups as well as other specific segments of the population; and (C) plans, activities, and actions of the Board and the Federal Open Market Committee to minimize and eliminate disparities across racial and ethnic groups with respect to employment, wages, wealth, and access to affordable credit pursuant to section 2C. ; and (2) in subsection (b)— (A) by striking The Board (1) In general The Board ; and (B) by adding at the end the following: (2) Trend information (A) In general Each report required under paragraph (1) shall include recent trends in the unemployment rate, labor force participation rate, employment to population ratio, median household income, and change in real earnings. (B) Demographic information The trends required to be reported under subparagraph (A) shall include a comparison among different demographic groups, including race (White, African-American, Latino, Native American, and Asian populations), ethnicity, gender, and educational attainment. . January 20, 2022 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Financial Services Racial Equity, Inclusion, and Economic Justice Act This bill address access to financial services, diversity in various financial institutions and establishments, and other related issues. Access to credit, mortgages, and banking services are expanded, including by prohibiting discrimination with respect to credit transactions on the basis of an applicant's sexual orientation, gender identity, or location based on zip code or census tract; establishing language translation requirements for residential mortgage applications; and providing funding set-asides for minority lending institutions. The bill expands the support of, and access to, minority depository institutions and community development financial institutions and establishes an impact bank designation for small institutions that predominately lend to low-income borrowers. Further, the Federal Reserve Board must carry out its duties in a manner that supports the elimination of racial and ethnic disparities in employment, income, wealth, and access to affordable credit. Additionally, the bill requires financial institutions to report information relating to diversity policies and lending practices. Retail businesses must accept cash as a form of payment for sales in amounts less than $2,000 and are prohibited from charging cash-paying customers a higher price. Finally, the bill commissions various reports and studies, including a report from the Government Accountability Office on public housing for the homeless.