In the 1970s, Coretta Scott King co-founded a committee advocating for a 0% national unemployment rate, guaranteeing federal jobs. The government compromised: Instead of ensuring full employment, the Federal Reserve balanced minimum inflation with maximum employment. And it did, to a racist fault.
Around 2020, the Fed reconsidered. Since unemployment rates are disproportionately high for Black Americans, when the Fed acts on “low” rates, we’re left behind. What’s “normal” for everyone else is a recession for us. Then, Biden appointed Lisa Cook, the first Black woman on the Federal Reserve Board of Governors. This year, the Fed scrubbed “DEI” from its website, and Trump fired her. Trump again made history in the worst way when he removed Gwynne Wilcox, the first Black woman on the National Labor Relations Board, jeopardizing the rights of all nongovernment workers. The Supreme Court’s response to Wilcox may dictate whether presidents can control multi-headed independent agencies like the Fed.
Trump wants to control the Fed because he wants much lower interest rates—now. However, the Fed hasn’t complied, partly because of Trump’s tariffs.
Economic decision-makers may lose confidence in the Fed if it’s understood to be controlled by Trump’s whims. A ripple effect could strike working-class Black Americans— impacting our mortgages, car loans, and credit card payments. Inflation could ultimately skyrocket.
“Black people have always been the sacrificial lambs when it comes to monetary policy,” says Andre Perry, an expert in Black economics. Under Trump, that can’t be truer.