Federal Reserve Governor Lisa Cook addressed the 2023 Future of Black Communities Summit’s Louis E. Martin ceremony on Thursday, highlighting the importance of maximum employment as a key central bank goal. Cook, who made history as the first Black woman governor of the Fed, traced the legal origins of this goal to the Employment Act of 1946.
In her address, Governor Cook emphasized that maximum employment levels aren't static but evolve in response to economic shifts. This perspective contradicts some economists' predictions about potential economic overheating due to low unemployment rates.
Cook also touched on broader discussions on price stability and a 2% inflation target. She expressed her support for the Federal Reserve's rate increases aimed at achieving this inflation target.
The Fed Governor also acknowledged the significant role played by economic-empowerment advocates in shaping legislative changes. She specifically mentioned Coretta Scott King's contributions to key amendments in the Federal Reserve Act (1977) and the Humphrey-Hawkins Act (1978).
Governor Cook was honored with the "Great American Award" at the summit. Her remarks underscored her commitment to economic empowerment and inclusivity, and her belief in an evolving definition of maximum employment that adapts to changing economic conditions.
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