“There is something wrong with it in the sense that, if people are harmed by the rules, there should be negotiations about redress,” Bostic told CNN Business in an exclusive interview.
“The values of past apartheid still exist in our society,” said Bostic, who became the first black president of the regional bank in 2017. “We have to consider what is needed to fix the effects of those old systems that are still in the past.”
The Bostic has directly called for systemic barriers that prevent the building of wealth among the young, including redevelopment and other forms of housing discrimination.
“We have African Americans today who have very little wealth,” he said, “in part because they could not inherit the wealth that would be available if their ancestors were able to consolidate that wealth.”
The city of Chicago authorizes the payment of Black people
Although restructuring – an illegal form of lending discrimination – has been banned for decades, consumer advocates say the practice continues with animal lending. Today, there is a 30 percent gap between black and white home ownership, higher than the gap that existed in 1960, according to the Urban Institute. Last week, Chicago’s suburb of Evanston, Illinois, adopted a first-of-its-kind compensation plan for Black citizens. Paying a 3% tax on official cannabis, the program provides housing loans to residents who may show damage from decades of apartheid acts of housing.
Bostic called the idea “very interesting” and “constructive,” especially because it is openly tied to those who can show that they have been hurt by racism.
“This is an interesting idea that many others should be thinking about as we move forward,” he said.
Biden backs away from studying fines
Until recently, the idea of a coalition government paying fines was out of the ordinary political mindset. For decades politicians have tried and failed to persuade the provincial government to study the program. However, the impetus for checking fines is increasing – with prominent supporters.
In 2019, Democratic Rep. Texas’s Sheila Jackson Lee has sponsored legislation that will establish a commission that will study the effects and effects of slavery and make recommendations on restitution proposals.
President Joe Biden supports a study of whether generations of slaves should be paid, the White House said in February. Last month a small housing committee held a hearing to discuss a state commission that would look at how the US government could pay interest on American slaves. Earlier this month, the Amalgamated Bank became the first major American bank to announce its support for financing.
Federal Reserve officials, including Bostic, have previously said little about the beauty of the refund.
However, a working paper released earlier this year by the Minneapolis Fed concluded that sanctions in the form of direct property transfers would not close the racial economic gap in the future, underscoring the deep effects of apartheid.
The idea of that conclusion, the paper writer wrote, was that “the release of a century” would lead black families to “enter into revenge for the hopeless beliefs about risky profits and forfeit investment opportunities.”
Some fear that lower prices, lower inflation, and unprecedented inflation will boost the economy, eradicating inflation and lowering the ability to earn less.
Bostic acknowledged that inflation readings would be critical in the next few months as the economy recovers, and stressed that the Fed would not respond in just a few months to very high prices.
“If we see inflation going too far, far from our 2% target, I think there will be time to do something,” he said. “But again, we’re far from that right now.”
However, Bostic admitted that no one knew what would happen to inflation, as this was a century-long epidemic.
“It’s a big unknown,” he said.