08.04.2016

Yesterday, in a wide-ranging on-the-record conversation with community members, including people struggling to survive on poverty wages, Minneapolis Federal Reserve President Neel Kashkari articulated a strong commitment to promoting racial and economic equity. A recording of the conversation is available here. The meeting was held at the offices of Neighborhoods Organizing for Change (NOC), a grassroots, member-led organization building power in under-resourced communities and communities of color across the Twin Cities. NOC is a member of the Fed Up coalition, which has now held in-depth meetings with all 12 of the Fed’s regional Presidents and four of the five Governors.

“We were very pleased with the conversation,” said NOC Executive Director Anthony Newby. “It is clear that President Kashkari is willing to be a real partner with us in the fight for economic and racial justice. This is hard work and we are eager to embark on it together.”

Kashkari also shared important information that was not previously known publicly: that at the Federal Open Market Committee meetings, it is now regular practice to report on unemployment and underemployment statistics disaggregated by race. This is a new practice at the FOMC that had not yet been disclosed to the public.

Among other things, Kashkari said he saw no sign of problematic inflation and that that he is “laser-focused” on creating more jobs so that everybody who wants to work can find work. He acknowledged racial disparities among communities, saying, “Some of the racial disparities we're facing are a crisis, and we need to treat them as such.”

He also addressed the lack of diversity at the Federal Reserve, whose leadership is dominated by white males from the banking and corporate sectors. He said the Federal Reserve has a lot of work to do on diversity in its governance and everybody inside the Federal Reserve system recognizes and wants to tackle that challenge.

Kashkari said he would attend more such meetings. "I hope this is the first of many meetings, and I hope you hold me accountable to that,” he said.

Kashkari made five concrete commitments to the NOC members and staff:

1. He agreed to have his office seriously consider and conduct interviews with the two candidates that NOC recruited for Class C directorships at the Minneapolis Fed: Samuel Myers, a prominent professor of public affairs at the University of Minnesota; and Karine Moe, the provost of Macalester College. He also agreed to recommend that his 11 regional president colleagues do the same with the candidates that the Fed Up coalition has recruited.
2. He said that at the Federal Open Market Committee meetings, it is now regular practice to report on unemployment and underemployment statistics disaggregated by race. This is a new practice at the FOMC that had not previously been known publicly, and comes in response to Congressional outcry, organized by the Fed Up coalition, based on the revelation by former President Narayana Kocherlakota’s that the employment situation for Black Americans was not considered by the FOMC in 2010. Kashkari promised to share those statistics if Fed staff ever fails to include them in the report at the FOMC meetings.
3. He agreed to visit with the Fed Up coalition in Jackson Hole, where it will be holding a series of teach-ins and events regarding economic and racial inequity and Federal Reserve governance.
4. He agreed to walk a day in the shoes of NOC member Rosheeda Credit to see how she and her boyfriend juggle multiple jobs to support their family.
5. He agreed to instruct his staff to conduct research to help explain racial disparities in the economy and identify possible solutions. For example, can a full employment economy reduce racial discrimination by employers? What impact does the criminal justice system have on economic inequity? 

The meeting, which lasted one hour, was followed by a press briefing. It is the latest example of how the voices, perspectives, and demands of working people from Black and Brown communities all over America are making a verifiable difference in the practices and policies of the Federal Reserve.

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www.mnnoc.org

Neighborhoods Organizing for Change (NOC) is a grassroots, member-led organization building power in under-resourced communities and communities of color across the Twin Cities. Together, NOC members fight for racial and economic justice. We're building powerful, active campaigns for better public transit, workers' rights, expanded voting rights, and police accountability.

 www.whatrecovery.org 

Fed Up is a coalition of community organizations and labor unions across the country calling on the Federal Reserve to reform its governance and adopt policies that build a strong economy for the American public. The Fed can keep interest rates low, give the economy a fair chance to recover, and prioritize genuine full employment and rising wages for all communities.

www.populardemocracy.org

The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.

Media Contact:

Tony Williams, tony@mnnoc.org, (612) 209-5987

Shawn Sebastian, ssebastian@populardemocracy.org, (515) 451-877