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This bill would restructure the Federal Reserve's priorities and governance to strengthen its focus on employment. Specifically, it redefines the Fed's mandate for "maximum employment" to include ensuring job seekers can find work, minimizing involuntary part-time employment, raising wages with productivity, and reducing unemployment and pay disparities across racial, gender, and geographic groups. The legislation eliminates the Class A and B director positions at each Federal Reserve Bank, keeping only directors designated by the Board of Governors, and requires Federal Reserve Banks to diversify their hiring process by interviewing candidates from underrepresented racial and ethnic groups, different genders, and those with labor or consumer advocacy backgrounds. The bill also requires the Federal Reserve to submit annual reports to Congress detailing applicant pool demographics and to conduct studies assessing the accuracy of its unemployment projections and evaluating the impact of monetary policy decisions on different demographic groups, particularly those experiencing above-average unemployment rates. The legislation was introduced in December 2024 and referred to the House Financial Services Committee but has not yet passed into law.

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