CPD IN THE NEWS

After Sen. Jeff Flake’s announcement that he would, in fact, vote to confirm Judge Brett M. Kavanaugh to the U.S. Supreme Court, the emotional debate over the confirmation spilled into the halls of Congress — on live television — as two women loudly and tearfully confronted the Arizona Republican in an el­e­va­tor Friday, telling him that he was dis­miss­ing the pain of sexual-assault survivors.

“What you are doing is allowing someone who ac­tu­al­ly violated a woman to sit in the Supreme Court,” one woman, who said she had been sexually assaulted, shouted during a live CNN broadcast as Flake was making his way to a Senate Judiciary Committee meeting. The Center for Popular Democracy, a left-leaning advocacy organization, later identified her as the group’s co-executive director, Ana Maria Archila.

“This is horrible,” she told Flake. “You have children in your family. Think about them.”

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Observer - March 5, 2015, by Will Bredderman - Minority activist organizations demonstrated in the snow outside the Federal Reserve Bank of New York, insisting that the institution keep interest rates low until stubbornly high unemployment rates in nonwhite communities drop further.

Immigrant advocacy group Make the Road NY and neighborhood organizers New York Communities for Change joined other left-leaning groups outside the lower Manhattan headquarters of the New York Fed, a branch of the national system that controls the interest rates at which lending institutions may borrow money from the United States government. The Fed has left the rates near zero since the financial crisis of 2008 in order to encourage investment, but it has indicated it might raise them this summer amid an improving economy.

The protesters, however, argued that black and Hispanic communities in New York City are still languishing in an economic doldrums, with jobless rates sitting at 11.2 percent and 5.7 percent respectively.

“These unemployment rates are not going to be better by this summer. We’re not a couple months away from a recovery,” said Shawn Sebastian from the Center for Popular Democracy, arguing that the Fed is looking only at a general joblessness picture that averages in the relatively low unemployment rates among whites. “They’re trying to look at the aggregate levels of unemployment and ignore how it’s disproportionately affecting minority communities to push this narrative about a recovery that we’re not experiencing.”

Chanting “don’t raise the rate,” the demonstrators insisted that New York Fed President William Dudley meet with their organizations to discuss the special needs of minorities.

“We need to sit down with him and have an honest conversation about why he needs to keep interest rates low in order to fight for our communities of color, so that we can make sure we are supplying jobs to all,” said Victoria Ruiz of Make the Road.

The protesters also lashed out at the Fed, which has the additional duty of regulating large banks, for failing to prevent lenders from issuing, packaging and selling dubious mortgage loans—which disproportionately went to black and Hispanic homeowners, with areas like Southeast Queens now leading the country in foreclosures.

“The banks, while the Fed was not watching what they were doing, was not doing its job supervising them, they went around snapping up subprime lenders and fueling all of that toxic subprime lending that happened,” said Alexis Iwanisziw of the New Economy Project, noting many major financiers have since paid out massive settlements to the Department of Justice for their activities.

The Federal Reserve Bank of New York referred the Observer to chairwoman Janet Yellen’s remarks after the Fed’s meeting last December, when she said “it can be patient in beginning to normalize the stance of monetary policy.”

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Julio López Varona, an organizer at the Center for Popular Democracy, told ThinkProgress on Friday morning via email that FEMA’s acknowledgement of the “inadequacy of their response” was a “welcome change” but that for Puerto Ricans, the admission may be cold comfort.

Last year’s behind-the-scenes selection of three men with ties to Goldman Sachs to serve atop the Federal Reserve did not go over well with outspoken civic groups and many Democrats, including Hillary Clinton, who have all called for a more transparent and inclusive central bank. In response to the critics, the Fed has rolled out a series of announcements, online forums and face-to-face meetings with Americans to portray a more open process of selecting its 12 district presidents that is also more sensitive to racial and gender diversity.

The Minneapolis Fed, like its counterparts in Philadelphia and Dallas last year, named a president in Neel Kashkari with a past at Goldman, the Wall Street bank. But it also broke ranks from others when it released video testimonials from directors shedding light on the year-long search process, and even published a “summary of attributes” sought in the candidate. The Atlanta Fed said last month it seeks a “diverse set of candidates” to replace outgoing chief Dennis Lockhart, and this month its board chair hosted a pubic webcast to explain the historically shrouded search process, raising hopes it would name the first black or Latino Fed president in the central bank’s 103-year history.

“In the Federal Reserve system we are taking this very seriously, but it’s not just because we want to go and say we’re diverse,” Loretta Mester, the Cleveland Fed President, told a gathering of low-wage workers and progressive economists organized by Fed Up, a labor-affiliated coalition of civic groups pushing for reforms. “It really is about … getting different view points that are very helpful to us in setting policy and thinking about the economy and understanding the trends,” she said at the Cleveland Fed on Friday. Mester met the group a day after her bank launched an online application form for the public to recommend people “diverse in backgrounds and perspectives” for board positions and advisory roles across her Midwest district. Asked to what extent outside pressure prompted the move, a spokeswoman said it was “just the latest in our ongoing efforts to broaden our outreach.”

The 12 Fed presidents have five rotating votes on U.S. interest rate policy. Unlike the five current governors at the Fed Board in Washington, who are selected by the White House and approved by the Senate, the presidents are chosen by their district directors, half of whom are themselves picked by private local banks that technically own the Fed banks. The dizzying structure is meant to ensure views from across the country are heard. But critics say it leaves the Fed beholden to bankers who are not representative of the public, and they point out that 11 of 12 district presidents are white while 10 of them are men. Among employees at the Fed Board in Washington, including service workers, 43 percent were non-white and 43 percent female last year. However at the executive level it was 18 percent and 37 percent, respectively, according to the central bank.

Clinton, the presidential candidate, has come out in favor of dropping bankers from district boards and making the Fed “more representative of America as a whole,” according to her party’s platform. That followed a May letter from 127 lawmakers to Fed Chair Janet Yellen urging more diversity.

After years of resisting more overt political efforts to curb its independence, the Fed under Yellen appears willing to take small steps in the name of transparency and inclusively. In an unusual entry in minutes of their meeting last month, Fed officials discussed a staff analysis of “differential patterns of unemployment across racial and ethnic groups.” U.S. unemployment among blacks is twice that of whites.

“While we applaud this progress, these very basic steps were available to them for the last hundred years and have only been rolled out very recently,” Shawn Sebastian, a Fed Up field director, said of the series of efforts by Fed banks.

In its latest critique, Fed Up called it “disappointing” that Nicole Taylor, a black woman and dean of community engagement and diversity at Stanford University whose term as director at the San Francisco Fed is soon to expire, would be succeeded on that district’s board by Sanford Michelman, a white man who is co-founder of law firm Michelman & Robinson LLP. John Williams, president of the San Francisco Fed, told reporters on Wednesday that while he has no control over the selection of directors, this board revamp “just redoubles my efforts and my team’s efforts to make sure that we are getting the voices and experiences from across the spectrum.” He added: “It’s definitely a step back in terms of what I’d like to see on our board. We’re working actively to build representation of women and minorities.”

By Jonathan Spicer

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