Federal Reserve Leadership Has Become 'Most Diverse Ever'

Leadership at the Federal Reserve has become its most diverse ever. There are more female, Black and gay officials contributing to the central bank’s interest-rate decisions than at any time in its 109-year history. . https://t.co/rJBRXMpJVY

— The Associated Press (@AP) August 27, 2022

When Diane Swonk first attended the Federal Reserve's annual economic conference in Jackson Hole in the late 1990s, there was a happy hour for women who attended the event. It barely filled a single table.

Now, the "Women at Jackson Hole" happy hour draws dozens of female economists and high-level decision-makers, from the United States and overseas.

"I'm just glad that now there's a line for the ladies' room," said Swonk, a longtime Fed watcher who is chief economist for the accounting giant KPMG.

It's not just at Jackson Hole but also in the Fed's boardroom where its leadership has become its most diverse ever. There are more female, Black and openly gay officials contributing to the central bank's interest-rate decisions than at any time in its 109-year history. Many are also far less wealthy than the officials they have replaced.

Over time, economists say, a wider range of voices will deepen the Fed's perspective as it weighs the consequences of raising or lowering rates. It may also help diversify a profession that historically hasn't been seen as particularly welcoming to women and minorities.

"Broadly, that's helpful," said William English, a former senior economist at the Fed who teaches at the Yale School of Management. "There's evidence that diverse groups make better decisions."[Citation needed]