Bill Overview
Title: Ensuring Diverse Leadership Act of 2022
Description: 2022 This bill requires that, when appointing a president, a Federal Reserve Bank must interview at least one individual reflective of gender diversity and one reflective of racial or ethnic diversity. The bill amends numerous banking-, finance-, and trade-related acts to make references to officials (including those to the Chairman of the Board of Governors of the Federal Reserve System) gender-neutral.
Sponsors: Rep. Beatty, Joyce [D-OH-3]
Target Audience
Population: People interested in Federal Reserve Bank leadership positions and banking sector professionals
Estimated Size: 2500
- The bill specifically requires interviewing diverse candidates when appointing a Federal Reserve Bank president. This directly impacts individuals aspiring to such roles who are from diverse gender, racial, or ethnic backgrounds.
- The emphasis on gender-neutral language in official documents impacts anyone engaged with Federal Reserve banking policies and procedures, as it promotes inclusivity.
- This may indirectly affect all employees and stakeholders associated with the Federal Reserve Banks by potentially altering the diversity of leadership.
- The focus on diverse leadership might influence policies that address or represent diverse communities more effectively, thus impacting broader economic governance and policy-making affecting residents in the United States.
Reasoning
- The primary population affected by this policy are professionals who are either involved in leadership at Federal Reserve Banks or aspire to be. This includes senior bankers, economists, and policy advisors, especially those from gender or racial minorities.
- The budget for this policy is relatively small compared to the total number of potential stakeholders, suggesting that the policy itself focuses more on procedural changes rather than large-scale interventions.
- Not all individuals in the banking sector or within Federal Reserve Banks are directly impacted unless they are part of or aiming for roles at the leadership level, suggesting that the effect is most pronounced on those in or aspiring to those specific positions.
- Considering the size limits and budget, the policy's direct impact is likely more about creating opportunities rather than making immediate, large-scale changes to the composition of Federal Reserve leadership.
- For many banking professionals, the policy might have more symbolic importance, promoting diversity within an industry that has been criticized for lacking it, which can affect job satisfaction and perceived inclusivity.
Simulated Interviews
Economist (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I appreciate the intent behind the policy as it opens more opportunities for people like me.
- The potential increase in diversity could bring new perspectives to the Federal Reserve which I think is much needed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Bank Executive (San Francisco, CA)
Age: 37 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I support any measures that improve diversity within the financial industry.
- I don't expect immediate changes for my bank but increased diversity at the Fed could trickle down positively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Policy Analyst (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Policies like this are a step forward, but the real impact depends on broader institutional changes.
- I’m optimistic but cautious about how much effect this will have long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Federal Reserve Administrator (Washington, D.C.)
Age: 52 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- Gender-neutral language and diversity are important, but implementation can be tricky.
- It feels like a significant move in the right direction, although personally, it might only change my work environment subtly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Banking Compliance Officer (Dallas, TX)
Age: 44 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Updating language in our documents is a crucial yet overdue step.
- It's encouraging for women in compliance roles to see these changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Financial Analyst (Los Angeles, CA)
Age: 31 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- This policy might make the Federal Reserve feel more inclusive, which is positive.
- I’m curious about the long-term impact but hopeful about seeing more diverse leaders.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Economics Professor (Boston, MA)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 4/20
Statement of Opinion:
- The symbolic nature of this policy can’t be overstated; representation matters a lot.
- It's an educational and awareness tool as much as a practical one for diversity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Banking Intern (Atlanta, GA)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- It's inspiring to think about more diverse leadership at the Federal Reserve.
- I see this as a small victory on a long road to equality.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Community Bank Manager (Minneapolis, MN)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Diversity at higher levels is important and should have a positive influence on local banks.
- I expect some indirect benefits for my team and me eventually.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Retired Banker (Philadelphia, PA)
Age: 59 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- Policies like these mean a lot for the future of banking leadership.
- I may not see much change myself, but I believe it sets a precedent for the coming generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $2000000 (Low: $1500000, High: $2500000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The direct financial cost is mainly due to administrative changes and compliance processes to ensure diverse candidate interviews and adjustments to gender-neutral language.
- The bill focuses on Federal Reserve Bank presidential appointments, a highly specialized and small segment of national leadership positions, thus limiting the broader impact.
- The intention is to promote diversity and inclusivity in leadership roles which can have long-term cultural impacts within the financial sector.
- No immediate savings or revenue impacts are expected due to the specific nature of the bill's requirements.