Treasury Secretary Janet Yellen says U.S. economy ‘has failed to live up to the nation’s promise of equal opportunity for all’

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The Biden administration announced a number of new efforts to advance racial economic equality during the annual Freedman’s Bank Forum in Washington DC on Tuesday.

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Forum, Recognizing the History of the East Friedman’s Savings Bank which maintained its earlier accounts for those formerly enslaved Last Fall in 1874, served as an opportunity for government and business leaders to bridge a wide racial-money gap. And Treasury Secretary Janet Yellen, who put racial equality at the forefront of the administration’s agenda, said that over the years, “our economy has failed to deliver on the nation’s promise of equal opportunity for all.”

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Recent efforts to combat that failure and invest in overlooked communities include the implementation of the American Rescue Plan, as well as the CHIPS and SCIENCE Act, the bipartisan infrastructure law and the Inflation Reduction Act, Yellen said. For example, data released Tuesday by the Office of Appraisal Science on two rounds of the federal government’s pandemic rental aid showed that black renters were “strongly over-represented” among those who did not. benefited from the programme.

“We’re trying to invest in communities that have often been overlooked or overlooked,” Yellen said. “Our economic blueprint supports our conviction that harnessing the potential of all communities is not only the morally right thing to do, but it is also a promising strategy for inclusive economic growth.”

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Yellen — who also shut down speculation that she might leave the Treasury Department soon — went on to highlight the child-tax credit expanded under the US rescue plan, which increased from $250 per child before ending last December. Provided to families with monthly checks of $300, as in another example. Some experts have credited the program Temporarily alleviating child povertyand public-policy professors at the University of Michigan said a recent brief that the payments “reduced the overall material hardships of the families and, in particular, their food insecurity.” (Very low-income households were briefly screened.)

Yellen said, “With tens of millions of households receiving a lot of money, it is estimated that the child poverty rate has decreased by about 30%, and by much, by a third, adults living with children in those households.” number of people who were short of food,” Yellen said. ,

,Now that the Child Tax Credit has expired, and now that some rental assistance programs have ended, some communities of color may have a less optimistic picture of the American economy. ,

However, now that the Child Tax Credit has expired, and now that some rental assistance programs are tiredSome communities of color may have a less optimistic picture of the US economy. Rising cost of living affects Blacks, Latinos and Native Americans home especially difficult, And, adding to a troubling racial homeowner gap, the number of black households taking the risk of buying a home has declined over the past year as mortgage rates rise.

Still, administration officials said on Tuesday they were moving forward with new programs that could also ensure a more equitable future.

a Newly formed 25-member Treasury Advisory Committee on Racial EqualityChaired by Michael Nutter, a Columbia University professor and former Philadelphia Mayor, will provide expertise and make recommendations on matters including financial inclusion, access to capital, and more.

Vice President Kamala Harris also revealed that members of the Economic Opportunity Coalition, a joint effort of the federal government and private sector giants such as Bank of America BAC,
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Has pledged $1 billion to the community Banks that serve rural communities and communities of color. (Bank of America announced Tuesday that it would double its existing low-cost deposits in minority-owned financial institutions alone, Adding $100 million in deposits.)

“Together, we know here that we have the capacity and responsibility — and duty, dare I say — to realize Friedman Bank’s vision,” Harris said. “And that’s what we’ve gathered here to do.”

a White House Fact Sheet Tuesday Further said the government’s Office of Management and Budget would issue a memorandum to federal agencies to set targets for increasing government contracts among “small, disadvantaged businesses,” while the Minority Business Development Agency would provide technical assistance grants for assistance. Announces $100 million in grants for “Underserved Entrepreneurs.”

Department of Housing and Urban Development Secretary Marcia Fudge, who also spoke at Friedman’s Bank Forum on Tuesday, additionally said HUD would further feedback On the barriers to starting a small-balance mortgage.

Many homes in majority-black cities like Detroit and Memphis can sell for less than $100,000, but it’s difficult to get a mortgage for that low amount, local housing solutionsA housing-policy platform managed by Housing Solutions Lab at NYU Furman Center.

“We know that people who live in less expensive or rural areas often find it difficult to mortgage for a low-cost home,” Fudge said.

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