When It Comes to Jobs, Fed Up With the Fed
The News & Observer - March 5, 2015, by Kevin Rogers - When the monthly jobs numbers come out Friday, many economists will say that the economy is healthy. Some will even say that wages are...
The News & Observer - March 5, 2015, by Kevin Rogers - When the monthly jobs numbers come out Friday, many economists will say that the economy is healthy. Some will even say that wages are rising too fast and that steps need to be taken to slow economic growth. But out in the real world, working families and particularly communities of color are being left drastically behind in the recovery.
The disconnect between the rich and the rest of us is only widening, and that is a real problem when the rich are making the decisions for everyone. For higher wages and more robust employment growth, we don’t need to limit ourselves to the usual discussions and the typical solutions. Rather, we should look in a new direction, to the Federal Reserve, for the necessary policy changes that will usher in real growth on Main Street, not just on Wall Street.
Most people don’t pay much attention to what the Fed does and how it does it, but the reality is that the decisions the Fed makes affect us all, every day.
There are two important ways the Federal Reserve can help:
▪ Ensure a monetary policy that delivers genuine full employment and rising wages for all working families. Raising interest rates in 2015 would be a catastrophic mistake. The American economy needs to see significantly more wage growth, not less.
▪ Provide a more transparent and inclusive approach to policymaking and governance. The Fed needs to listen to the voices of working families, not just banks and mega corporations.
Rampant and uneven unemployment can be measured in numbers, but it means that real-life opportunities fall further out of reach for working parents and that doors close on our children. It means that families are feeling the strain, and disenfranchisement is getting worse.
Permitting the economy to speed up significantly offers only upsides. A new report by the Center for Popular Democracy and the Economic Policy Institute finds that until nominal wages are rising by 3.5 to 4 percent, there is no threat that price inflation will meaningfully exceed the Fed’s low 2 percent inflation target. And such wage growth is necessary for workers to begin to reap the benefits of economic growth and to achieve a genuine recovery from the Great Recession.
Indeed, during the past three decades, it was only in the late 1990s, when the Federal Reserve permitted economic growth to speed up and the labor market to tighten, that workers across the economic spectrum, and in communities of color, saw genuine wage improvements.
As was true then, the Fed is not an innocent bystander in our economy, but an active participant. And yet, despite the clear economic disparities among our communities, voices inside the Fed are now saying that the economy is healthy and that the Fed should tamp down growth so that wages stop rising so quickly.
Although the board members that govern the regional Federal Reserve banks are legally required to represent the broad interests of the public, they mostly represent the financial sector or large corporations – they live very different lives from us, and they don’t take our experiences to the boardroom.
The Fed’s decisions are distant from communities that struggle the most in this economy and simply do not reflect the full diversity of the public it is supposed to represent. This explains why board members have produced an economy that works for them. Millions of working families are left with little hope of a better life.
It is no wonder that supporters of higher wages and fuller employment from across the country are turning up the heat on out-of-touch policies and practices coming from the Fed. Regular families should not be shut out the Fed policymaking process. Instead, they should be at the very core of it.
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Read more here: http://www.newsobserver.com/opinion/op-ed/article12716264.html#storylink...Dems to Fed: Increase your diversity
Democrats in Congress are pushing the Federal Reserve to emphasize diversity when filling top policymaking roles.
In a new letter sent to Fed Chairwoman Janet Yellen, the lawmakers noted...
Democrats in Congress are pushing the Federal Reserve to emphasize diversity when filling top policymaking roles.
In a new letter sent to Fed Chairwoman Janet Yellen, the lawmakers noted that the overwhelming majority of top central bank positions are filled by white men, and they urged a rapid change.
“The importance of ensuring that such positions are filled by persons that reflect and represent the interests of our diverse country cannot be overstated,” they wrote. “When the voices of women, African-Americans, Latinos, Asian Pacific Americans, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected.”
The letter, spearheaded by Sen. Elizabeth Warren (Mass.) and Rep. John Conyers Jr. (Mich.), garnered signatures from 11 senators and 116 House Democrats. Sen. Bernie Sanders (I-Vt.), a Democratic presidential contender, signed the letter, as did every Democrat in the Congressional Black Caucus.
Hillary Clinton jumped into the fray as well, issuing a statement Thursday echoing that message and calling for reforms at the Fed to limit Wall Street input.
"Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms -- like getting bankers off the boards of regional Federal Reserve banks -- are long overdue," said a campaign spokesperson.
The members called for the Fed to consider a range of factors when filling upcoming vacancies, including a candidate's ethnicity, economic and professional background.
They note that while unemployment has fallen sharply over the last several months, minority groups still fall behind. White unemployment is 4.3 percent, Hispanic unemployment is 6.1 percent, and black unemployment is 8.8 percent.
The lawmakers noted that every member of the Federal Open Market Committee (FOMC), which sets the nation’s interest rate policy, is white.
In response to the lawmaker critique, the Fed said it was committing to boosting diversity, and touted its recent efforts along those lines.
"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," said a Fed spokesperson. "By law, we consider the interests of agriculture, commerce, industry, services, labor, and consumers. We also are aiming to increase ethnic and gender diversity. "
Thursday’s letter is the latest in a growing leftward push to influence the Fed, as liberals view the central bank as disproportionately influenced by input from Wall Street. With the economy on the mend and the Fed eyeing upcoming interest rate increases, they argue that too many Americans lower on the economic scale are not yet feeling those economic gains and need more support from the central bank.
Yellen was previously asked about diversity at the Fed at a congressional hearing earlier this year, and she committed to look into the matter.
Did you know 67% of all job growth comes from small businesses? Read More
A top priority for the lawmakers is ensuring increased diversity at the 12 regional Fed banks scattered across the country. Those banks occupy five rotating seats on the FOMC. But their boards are mostly filled by commercial banks, which directly back each institution.
Democrats have said for years that the arrangement ensures that the financial sector enjoys a prime seat in communicating with the Fed. Thursday’s letter noted that no regional bank head is black or Latino, and no African-American has ever helmed a regional Fed bank in the organization's 100-year history.
By Peter Schroeder
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Still We Rise march peacefully denounces inequality
Despite a week of police-related violence, Still We Rise: The 2016 People’s March peacefully trailed through downtown Pittsburgh Friday afternoon, filling the streets with bright colors and music...
Despite a week of police-related violence, Still We Rise: The 2016 People’s March peacefully trailed through downtown Pittsburgh Friday afternoon, filling the streets with bright colors and music in the process.
About 40 organizations — including New York Communities for Change, Common Good Ohio and Action United — and more than 1,000 people marched from the David L. Lawrence Convention Center to the Station Square office of Sen. Pat Toomey, R-PA, in protest of inequality and hate.
Friday’s march was part of the People’s Convention — a two-day convention discussing social issues such as climate justice, immigration and economic inequality. The Center for Popular Democracy and CPD Action presented the convention, which runs Friday through Saturday at the Convention Center.
Emily Terrana from Open Buffalo, a civic initiative in Buffalo, New York, focused on improving equity and justice, said collaborative actions show “the outside world” and people within the organizations the importance of their work.
“It really shows how much power we have when we come together,” Terrana said. “Oftentimes, folks can feel really isolated in the work that they do. [Actions like the march] give life to one another so that we can continue to exist and fight on.”
La’tasha Mayes, the executive director of New Voices Pittsburgh: Women of Color for Reproductive Justice and a Pitt alum, said marches such as Still We Rise are important because “we have so far to go” on social issues.
“Every time you have an action like this, it’s to bring awareness,” Mayes said. “It’s supposed to mobilize people who are most impacted by these issues. We have to have leaders, we have to have advocates, we have to have organizers to make a difference.”
A large phoenix puppet with a 35-foot wingspan was at the head of the march. The CPD asked KT Tierney, a Pitt alum, and a group of others who make puppets for marches and similar events. Tierney said the phoenix, which also appeared on flags and shirts organizers distributed to demonstrators, symbolizes rising from the ashes.
“People face oppression, and from that oppression, they can still triumph,” Tierney said. “It’s kind of a rebirth.”
Before reaching its final destination, the march leaders stopped at several Downtown locations to protest corporate and governmental offices. Among the stops were the Allegheny County Courthouse, Bank of New York Mellon, the U.S. Steel Tower — where protesters held signs decrying UPMC’s treatment of employees — and the Federal Reserve Bank of Cleveland offices.
JoEllen Chernow, the director of special projects at CPD, said the CPD has been planning the convention for a year, while the march has been in development for about five months.
“This is a really important moment for people to be coming together,” Chernow said. “People are afraid already in their communities. These [issues] are things keeping every one of these people up at night.”
Before reaching Station Square, marchers crossed the Smithfield Street Bridge and waved to kayakers in the Monongahela River. A sign reading “Stop Oil Trains” floated across the water, tied to each of the kayaks.
Outside of Toomey’s offices, a wall of Styrofoam “Toomey stones” served as the backdrop for a series of speakers, including Teresa Hill of Action United and Debbie Soto of Organize Now from Orlando, Florida.
The wall of Toomey stones read, “Here lie profits over people, homophobia, divisive politics and empty promises, racism and hate, climate change denial.” Following the speeches, members of the crowd cheered as the wall fell, symbolizing the necessity of overcoming institutional obstacles.
As part of the march’s finale, rappers Jasiri X, LiveFromTheCity and Tyhir Frost performed as representatives of 1Hood Media, a Pittsburgh collective of socially conscious hip-hop artists and activists.
“When we say ‘Black Lives Matter,’ we’re not saying only black lives matter,” Jasiri said before starting his performance. “We say ‘Black Lives Matter’ because if you watch the news, if you watch television, it’s black people that are being shot down.”
The march and convention happened to coincide with the fatal police shootings of Alton Sterling and Philando Castile, which sparked controversy after videos connected to the incidents went viral on social media.
Micah Johnson, a black man angered by the deaths of Sterling and Castile, shot and killed five Dallas police officers, injuring seven other officers and two civilians during a Black Lives Matter march Thursday night.
On Friday afternoon, Mayor Bill Peduto announced plans to hold a communitywide peace summit next week “to work together to address fear and violence.” Peduto, in collaboration with Allegheny County Executive Rich Fitzgerald, plans to gather leaders in law enforcement, faith-based organizations, activist groups, corporations and government.
“We are all affected by the violence in our communities — whether it be here in Pittsburgh, in Dallas or so many other cities — and we all must do everything we can to stop it,” Peduto said in a release. “Pittsburgh is a strong and resilient place, and our bonds are even stronger when all of us in the city work together.”
The Pittsburgh Downtown Partnership will also host a Town Hall meeting July 13 with the city police to discuss Downtown stakeholders’ safety concerns.
Renata Pumarol of New York Communities for Change said the organizations behind Still We Rise, as well as the individual demonstrators, were there to “learn from each other” and show they are a “strong force.”
“We wanted to take to the streets to send a big message here that we’re stronger than ever,” Pumarol said. “We face the same issues across the nation. It’s very important for us to be united and fight together.”
By Alexa Bakalarski
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Arizona special election 2018: ALS patient and activist Ady Barkan stumps for Democrat Hiral Tipirneni
Arizona special election 2018: ALS patient and activist Ady Barkan stumps for Democrat Hiral Tipirneni
Be a Hero is an offshoot of the Center for Popular Democracy’s CPD Action group (Barkan previously worked for the center) and will concentrate on boosting Democratic candidates focused on...
Be a Hero is an offshoot of the Center for Popular Democracy’s CPD Action group (Barkan previously worked for the center) and will concentrate on boosting Democratic candidates focused on protecting health care and entitlement programs like Medicare, Medicaid, and Obamacare, as well as ousting Republican incumbents who voted for the GOP tax plan or have voiced support for cutting entitlements.
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America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda...
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Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda...
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