WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), the highest-ranking Latino in Congress and a senior member of the Senate Banking Committee, and U.S. Representative Raul Ruiz, M.D. (D-Calif.-36), Chairman of the Congressional Hispanic Caucus (CHC), today led a bicameral group of CHC colleagues in urging the Federal Reserve Bank of Kansas City to appoint a Latino as its next president. This follows recent decisions by the Federal Reserve Banks of Boston, Dallas, and Chicago to move forward with non-Latino candidates for their presidential vacancies despite efforts by Sen. Menendez and other Congressional leaders pushing the Federal Reserve Board Governors to start a new chapter in the Fed’s 108-year history – one that has shut out Latinos from the upper echelons of leadership at the Fed.

In their letter, the lawmakers highlighted that the Federal Reserve has yet to have a Latino Bank President since its founding in 1913, despite the increasing racial and ethnic diversity in the United States, especially among the Latino community which is the fastest-growing demographic in the country and represents a $2.8 trillion economic output. Additionally, they emphasized to the Kansas City Federal Reserve Bank that nearly 1 in 5 residents in the bank’s region identify as Latino.

“Undoubtedly, increasing diversity and inclusion throughout the Federal Reserve System and the federal government as a whole is critical to ensuring our public sector reflects our communities and the general population. The Federal Reserve once again has an historic opportunity to appoint a Latino candidate to lead a regional Federal Reserve Bank,” wrote the lawmakers.

The lawmakers also pointed out that the most recent Report to Congress on the Office of Minority and Women Inclusion shows only five percent of the Federal Reserve’s 2021 overall workforce identify as Latino or Hispanic. Additionally, as of January 1, 2022, only ten percent of the Bank and Branch Directors identify as Latino or Hispanic.

“The Federal Reserve has made significant progress in diversifying its leadership and workforce; however, we encourage you to continue and expand these efforts to ensure that the decision-making process at the Federal Reserve is representative our nation’s communities and experiences,” the lawmakers added. “The Federal Reserve has yet to appoint a Latino Federal Reserve Bank President since its founding in 1913…If the decisions made by the Federal Reserve are to reflect our nation and the experience of working families in the U.S. economy, then the Federal Reserve must prioritize diversity in its leadership. We therefore urge you to select a Latino candidate for the Kansas City Federal Reserve Bank presidency.”

Sen. Menendez has been a champion in the fight to address diversity issues in the financial services industry and amongst financial regulators and, in particular, the Federal Reserve. Last week, he criticized the Federal Reserve Board of Governors for yet again forgoing an opportunity to give the Latino community a voice in an institution that makes far-reaching decisions about our economy by appointing a Latino as the President of the Chicago Federal Reserve Bank. He has written multiple letters to the Fed on this subject, including when it was in the process of appointing a new president for the Boston and Dallas Federal Reserve Banks, and has asked about it at multiple committee hearings with Federal Reserve Chair Jerome Powell and Fed Vice Chair for Supervision Michael Barr. In addition, the Senator has suggested reforms to improve the transparency of the Federal Reserve Bank President and director selection processes.

Joining Sen. Menendez and Rep. Ruiz in signing the letter are Sens. Alex Padilla (D-Calif.), Ben Ray Luján (D-N.M.), Catherine Cortez Masto (D-Nev.), and Reps. Nydia Velázquez (D-N.Y.-07), Nanette Barragán (D-Calif.-44), Adriano Espaillat (D-N.Y.-13), Joaquin Castro (D-Texas-20), Henry Cuellar (D-Texas-28), Jesús “Chuy” García (D-Ill.-04), Lucille Roybal-Allard (D-Calif.-40), Darren Soto (D-Fla.-09), Juan Vargas (D-Calif.-51), Sylvia Garcia (D-Texas-29), Albio Sires (D-N.J.-08), and Ruben Gallego (D-Ariz.-07).

The full text of the letter is available HERE and below.

Dear Chair Griego-Raby,      

We write to you regarding the presidential vacancy at the Federal Reserve Bank of Kansas City and urge you to consider selecting one of the many highly qualified Latino candidates to fill the vacancy. Undoubtedly, increasing diversity and inclusion throughout the Federal Reserve System and the federal government as a whole is critical to ensuring our public sector reflects our communities and the general population. The Federal Reserve once again has an historic opportunity to appoint a Latino candidate to lead a regional Federal Reserve Bank.

As you are aware, the most recent Report to the Congress on the Office of Minority and Women Inclusion shows only five percent of the Federal Reserve’s 2021 overall workforce identify as Latino or Hispanic. Additionally, as of January 1, 2022, only ten percent of the Bank and Branch Directors identify as Latino or Hispanic. The Federal Reserve has made significant progress in diversifying its leadership and workforce; however, we encourage you to continue and expand these efforts to ensure that the decision-making process at the Federal Reserve is representative our nation’s communities and experiences. 

The Federal Reserve has yet to appoint a Latino Federal Reserve Bank President since its founding in 1913. The country is growing increasingly racially and ethnically diverse, especially our Hispanic and Latino populations. The U.S. Hispanic and Latino population grew by twenty-three percent since 2010 and now accounts for nineteen percent of all Americans. The Kansas City Federal Reserve Bank includes the states of Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Missouri, and over a dozen counties in northern New Mexico. Over 18 million residents live in the tenth district of this regional bank and an estimated 17 percent are Hispanic.

Within the last year, the Federal Reserve had three distinct opportunities to address and correct the long exclusion of Latinos from the upper echelons of leadership across the Federal Reserve System. The Federal Reserve Banks of Boston, Dallas, and Chicago moved forward with non-Latino candidates for their presidential vacancies. If the decisions made by the Federal Reserve are to reflect our nation and the experience of working families in the U.S. economy, then the Federal Reserve must prioritize diversity in its leadership. We therefore urge you to select a Latino candidate for the Kansas City Federal Reserve Bank presidency.

Sincerely,

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