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Floor Speech

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Mr. REED. Madam President, I am joined by Senators Brown, Warren, Van Hollen, Booker, Whitehouse, Baldwin, Padilla, and Merkley in reintroducing the Respect for Workers Act, a bill that would ensure that at least one Federal Reserve Governor has demonstrated primary experience in supporting or protecting the rights of workers.

Today, the Federal Reserve is attempting to curb inflation without plunging the economy into a recession. Over the past year, it has increased the Federal funds rate by 4\1/2\ percentage points to cool the economy and ease prices--its fastest pace of rate hikes since the early 1980s. But this is a difficult balancing act. If the Federal Reserve does not get its policies right, it may fail to defeat inflation or drive us into a recession. Workers would bear the brunt of the economic fallout attached to either outcome through higher prices or higher unemployment.

Arguably no group is more affected by the Federal Reserves efforts to meet its dual mandate to promote stable prices and maximum employment than workers. But, while the law requires the Federal Reserve Board of Governors to represent diverse geographic regions and a wide array of commercial interests, no Federal Reserve Governor is required to have a background in protecting the interests of workers. Indeed, while the interests of Wall Street, nonbank financial institutions, and big business have long been well-represented on the Board, everyday working men and women have not been given the same voice in monetary policymaking.

Our bill fills this hole by requiring at least one Federal Reserve Governor has experience addressing the challenges facing workers. This is not a new concept. In fact, our bill is modeled on the 2015 law that requires at least one of the seven Federal Reserve Governors to be an individual ``with demonstrated primary experience working in or supervising community banks.''

In short, the Respect for Workers Act would ensure workers' economic needs are represented at the Federal Reserve. It would build a stronger, more representative Board of Governors and promote a healthier economy.

I thank the AFL-CIO, Groundwork Collaborative, National Employment Law Project, MIT Professor and Former International Monetary Fund Chief Economist Simon Johnson, and Georgetown Law Professor Adam Levitin for their support and urge our colleagues to join in pushing to enact this legislation. ______

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