Bob Rodriguez on Joe Biden's plan to add addressing black inequality to Fed's mandate

There's one other aspect that concerns me. We have a presidential election coming up. People will be on one side or the other. Looking specifically at one item of Biden's economic plan, it would be to effectively add a third mission to the Federal Reserve’s mandate. The Fed would need to address Black/minority equity and unemployment. This would further politicize the Fed. If this were to occur, I believe it would raise anxiety among many of our holders of Treasury securities, which total more than $7 trillion. If they decided to reduce their holdings, like what has been occurring over the course of the past year, this could put additional pressure on the dollar. It would also likely mean the Federal Reserve would have to be the buyer of last resort. This could increase the size of the Fed’s balance sheet even more so beyond the deficits that will occur over the next five years.

~ Bob Rodriguez, "Bob Rodriguez: We are in a Rolling Depression," by Robert Huebscher, Advisor Perspectives, September 7, 2020