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Reps. Ayanna Pressley (D-Mass.) and Yvette Clarke (D-N.Y.) are urging the Federal Reserve to take “immediate action” to address the sharp rise in Black unemployment.
In a letter to Federal Reserve Chair Jerome Powell obtained by theGrio, Pressley and Clarke, who chairs the Congressional Black Caucus, described the current 8.3 percent Black unemployment rate as a “crisis," arguing that it threatens both Black households and the broader U.S. economy.
“The alarmingly high rates of unemployment in the Black community are a glaring red flag with negative implications for the broader economy,” the lawmakers wrote. “It is critical that you take immediate action to fulfil the statutory mandate to promote maximum employment for all people, of all races and genders.”
The pair blamed President Donald Trump’s economic policies for worsening the disparity, citing federal workforce cuts, the rollback of diversity, equity, and inclusion initiatives, and tariffs that they say disproportionately harm Black workers and Black-owned businesses.
Pressley and Clarke requested a briefing from the Federal Reserve Board on unemployment trends and potential solutions, including expanded lending programs for small businesses and nonprofits and recommendations to boost labor force participation.
The letter cites U.S. Census data that shows Black workers earn about 20 percent less than white workers. It also notes the racial wealth gap, with the median Black family holding $24,520 in net worth compared with $250,400 for the median white family.
The pair wrote that rising unemployment “widens existing disparities between labor market outcomes and results in increasing income inequality.”
“It is not enough to simply analyze; there needs to be action,” they said. “The Federal Reserve must comprehensively analyze the impact of Black workers’ job losses and develop a strategic plan to confront this crisis.”
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