Michael Weber on How Diversity Can Help the Fed

Particularly when interest rates are low, central banks rely on communication with the public to help drive economic outcomes. Therefore, having consumers pay attention to and trust their forecasts about inflation, unemployment, and other factors is crucial to monetary policy-makers. Chicago Booth's Michael Weber and his coauthors find evidence that when policy-making bodies, such as the Federal Reserve's Federal Open Market Committee, make salient the identities of their underrepresented minority members, they can increase public interest and trust in their activities.

[@williamsmith6575]

This study seems to have been constructed to push a particular politically driven management philosophy. It's methodology and data provide a bad support for the conclusions it makes.