The Fed’s about to try something that almost always has ended in recession
The Fed’s about to try something that almost always has ended in recession
The Federal Reserve‘s looming attempt to shrink its mammoth portfolio of bonds comes with an ugly track record: Virtually every time the central bank has tried it in the past, recessions have...
The Federal Reserve‘s looming attempt to shrink its mammoth portfolio of bonds comes with an ugly track record: Virtually every time the central bank has tried it in the past, recessions have followed.
Over the past several months, the Fed has prepared markets for the upcoming effort to reduce the $4.5 trillion it currently holds of mostly Treasurys and mortgage-backed securities. The balance sheet ballooned as the Fed sought to stimulate the economy out of its financial crisis morass.
Read the full article here.
Scam Central: Elizabeth Warren Tells Wells Fargo CEO to Resign and Get It Over With
Scam Central: Elizabeth Warren Tells Wells Fargo CEO to Resign and Get It Over With
Wells Fargo CEO John Stumpf was on the hot seat Tuesday when he faced Massachusetts senator Elizabeth Warren and other angry lawmakers at a Senate Banking Committee hearing designed to investigate...
Wells Fargo CEO John Stumpf was on the hot seat Tuesday when he faced Massachusetts senator Elizabeth Warren and other angry lawmakers at a Senate Banking Committee hearing designed to investigate the bank’s widespread rip-off of its customers.
Warren told Stumpf, who earns $19 million a year: “You should resign... You should be criminally investigated.”
Wells Fargo is the nation’s fourth largest bank by assets and its leading home lender.
Warren’s verbal assault on Stumpf generated considerable publicity. But this issue wouldn’t have surfaced in the first place without the hard work of several grassroots community and labor organizations, especially the Committee for Better Banks, that first brought the scandal to the attention of the media, elected officials and regulators.
Warren demanded both the Department of Justice and Securities and Exchange Commission criminally investigate Stumpf for Wells Fargo’s practice of pressuring its low-level employees to create over 2 million unwanted checking and credit-card accounts without consumers’ knowledge or permission in order to grow the bank’s stock price. Warren reminded Stumpf that during the years Wells Fargo engaged in this “scam,” Stumpf’s own portfolio of company stock increased by $200 million.
She urged Stumpf to return the compensation he received while these practices went on.
“So, you haven’t resigned, you haven’t returned a single nickel of your personal earnings, you haven’t fired a single senior executive,” Warren told Stumpf. “Instead, evidently, your definition of accountable is to push the blame to your low-level employees who don’t have the money for a fancy PR firm to defend themselves. It’s gutless leadership.”
“You squeezed your employees to the breaking point so they would cheat customers and you could drive up the value of your stock and put hundreds of millions of dollars in your own pocket,” Warren said.
Wells Fargo’s official line is that the employees were acting on their own to skim extra pay from the bogus accounts. Warren questioned Stumpf about the fraudulent accounts, asking how such an operation could have occurred without the knowledge of top management.
Wells Fargo employees say they did so because of what they call the bank’s “sell or die” quota system, which put pressure on employees to engage in these practices in order to keep their jobs. They said it was a routine practice employees referred to as “sandbagging.”
Activists are up in arms over Wells Fargo’s double standard in dealing with its employees. After the scandal was exposed by grassroots advocates, the media, and government regulators, the bank fired at least 5,300 employees and refunded millions of dollars to customers. But bank reform activists are skeptical that so many employees could have acted on their own without the knowledge of higher-up bank executives.
Meanwhile, in July, in the wake of the scandal, Carrie Tolstedt, Wells Fargo’s director of consumer banking, the operation that opened the fake accounts, abruptly left the bank where she had worked for 27 years. She took with her a $124.5 million bonus. After her retirement announcement, Stumpf praised Tolstedt as “a standard-bearer of our culture” and “a champion for our customers.”
Warren criticized Stumpf for failing to withdraw Tolstedt’s bonus (a practice known as a “clawback”) in light of the revelations about her division’s behavior. Stumpf said it was up to the bank’s compensation committee, comprised of board members, to decide whether to rescind Tolstedt’s bonus.
“If you have no opinions on the most massive fraud that’s hit this bank since the beginning of time, how can it be that you get to continue to collect a paycheck?” Warren asked.
Moreover, activists say that the problem goes well beyond Wells Fargo and is an industry-wide scandal.
Ruth Landaverde, a former employee at both Wells Fargo and Bank of America, said the pressure from her supervisors at both banks was so intense she developed a tic in her eye and had trouble sleeping. She told the Associated Press that in order to keep her job she was required to sell four credit cards and four auto loans each week in addition to three home mortgages or refinances.
“I wasn’t going to do something unethical, but the sales pressure was very real,” she said. “I can see why some employees did what they did.”
Landaverde is now a member of the Alliance of Californians for Community Empowerment, a statewide advocacy group that works on housing and banking issues and is a member of the Committee for Better Banks, a coalition of community and labor groups. In an email this week to ACCE members and supporters, she wrote:
“When I worked for Bank of America, I felt uncomfortable when I was given a list of bank customers and told to call them and push new accounts and credit cards that could end up sticking them with unnecessary fees and debt. What’s worse, we were targeting customers in low-income communities of color much more than the customers in more affluent zip codes.”
Landaverde said that “there are still many more banks that have not committed to stop requiring their employees to push unnecessary products in order to keep their jobs. And now, Wells Fargo CEO John Stumpf is throwing his own employees under the bus rather than accepting responsibility for the outrageous high-pressure sales culture that he and other Wall Street executives are creating!”
“I know first-hand that predatory sales exist across the U.S. banking industry,” said Cassaundra Plummer, a former teller at TD Bank and member of the Committee for Better Banks. “At TD bank, sales goals made it impossible for frontline bank workers to help customers find the financial products best suited to them. My manager would encourage customers to take out home equity lines to go on vacation which is the worst financial advice I’ve ever heard. We need to end predatory sales goals across the industry, not just Wells Fargo.”
Last year the Committee for Better Banks delivered a petition signed by more than 11,000 people to Stumpf, along with a letter noting that workers faced “pressures to meet sales quotas under strict monitoring and threat of losing their jobs, often forcing them to push unnecessary products and fees on to their customers, causing them stress and financial hardship,” and that loan servicing departments have been using similar tactics to push consumers toward riskier products they can ill afford.
The group has now launched another petition asking elected leaders in Los Angeles and other cities around the country to ban all city business with banks that force their employees to meet sales goals for high fee products such as credit cards, new accounts and home refinance loans. They say that these incentive programs create a system where bank workers are forced to engage in predatory practices against their professional and ethical beliefs.
“Wells Fargo’s action to eliminate sales quotas is a hard-won victory for front-line bank workers who have been denouncing abusive sales goals for over two years,” said Reuben Traite, an organizer with Committee for Better Banks. “The fact that Wells Fargo turned a blind eye is appalling. But these high pressure sales goals are rampant across big banks and we need to end it across the industry.”
Activists with the Los Angeles chapter of ACCE brought the issue to the attention of the Los Angeles Times, which broke the story in 2013. Once it made the papers, Los Angeles City Attorney Michael Feuer conducted his own investigation and then sued Wells Fargo. All that got the attention of the Consumer Financial Protection Bureau, the federal agency created by the 2010 Dodd-Frank bank reform law.
Last week, CFPB director Richard Cordray, Comptroller of the Currency Thomas Curry, and Feuer announced that they had reached settlements with Wells Fargo over its “major breach of trust.” Wells Fargo agreed to pay CFPB $100 million (the largest fine the agency has ever imposed) in addition to $50 million to the city and county of Los Angeles and $35 million to the Office of the Comptroller of the Currency. Wells Fargo did not admit any wrongdoing in the settlements, although it issued an apology to its customers, promised to revise its sales practices, and agreed to refund consumers for fees assessed on checking and credit cards accounts they didn’t authorize.
Activists point out that the fines being levied against Wells Fargo are a drop in the bucket compared with Wells Fargo’s 2015 profits of $20 billion. It is even less than the more than $200 million in company stock that Stumpf owns. He serves on the board of directors of Target Corporation and Chevron Corporation, and until recently, on the board of the Financial Services Roundtable, a powerful industry lobby group.
The bank’s apology and refunds won’t make the issue go away. Many consumers are suing the bank as are former employees who say they were fired (or forced to resign) when they refused to engage in the fraudulent practices in order to meet the bank’s unrealistic sales quotas.
The issue first emerged in 2013 when the Los Angeles Times uncovered Wells Fargo’s illegal practices. In response to the Times story, Feuer initiated his own investigation and sued the bank, alleging it had “victimized their customers by using pernicious and often illegal sales tactics,” including unattainable quotas that pressured bank employees to “engage in fraudulent behavior.”
The CFPB undertook its own investigation and discovered that Wells Fargo employees opened as many as 1.5 million checking and savings accounts, and more than 500,000 credit cards, without consumers’ knowledge or permission.
The LA and CFPB investigations, the resulting media coverage, and Wells Fargo’s attempt to blame its lower-rung employees for the scandal led five Democrats on the Senate Banking Committee — Sherrod Brown (Ohio), Jack Reed (R.I.), Robert Menendez (N.J.), Jeff Merkley (Ore.), and Warren — to push its Republican chairman, Richard Shelby of Alabama, to holdTuesday’s hearings. They sent Strumpf a letter last week expressing concern that consumers and low-level employees will bear the burden of the bank’s misconduct “while senior executives walk away with multimillion-dollar awards based on what the company later finds out are fraudulent practices.”
The San Francisco-based Wells Fargo has long been a target of bank reform activists for its troublesome track record of risky and reckless behavior. For more than a decade, grassroots groups have challenged Wells Fargo’s racially discriminatory lending practices and aggressive foreclosures. They have picketed at the offices and homes of the bank’s top executives, sued the bank for violating laws against racist mortgage lending, and testified before Congress, state legislatures and city councils demanding that they investigate and rein in Wells Fargo’s troublesome practices.
The activists have primarily been bank consumers and residents of neighborhoods harmed by Wells Fargo’s redlining and other practices. But the two-year-old Committee for Better Banks is comprised of bank employees as well as consumers, representing a new and potentially powerful coalition. Not surprisingly, the Committee for Better Banks is now part of the broader movement to raise wages for service-sector employees like bank tellers to $15 an hour.
The CBB is aligned with the Center for Popular Democracy, a national network of local activist groups that work on housing, banking, and workers rights issues. CPD helped set the stage for the current campaign with its study of bank workers. The CPD report revealed that some of the nation’s largest banks, including Wells Fargo and Citigroup, pressure front-line employees to engage in fraudulent practices to keep their jobs. According to the report, the bank employees try to serve customers responsibly, but feel pressure from higher-ups to meet the quotas.
A report last year by the National Employment Law Center on banking industry wages found that almost three quarters (74.1 percent) of U.S. bank tellers and almost half (44.2 percent) of bank customer service representatives earn less than $15 an hour. The median hourly wage for bank tellers is $12.44. A study by the UC Berkeley Center for Labor Research and Education found that nearly one-third of the families of all tellers are on public assistance. In New York City, the capital of the nation’s banking industry, 39 percent of tellers and their family members are on some form of public assistance program.
Other groups involved in the better banking campaign include Move On, the Communication Workers of America, New York Communities for Change, ACCE, Jobs with Justice, Make the Road, and Americans for Financial Reform, a DC-based watchdog group.
GOP presidential nominee Donald Trump has called for dismantling nearly all of the Dodd-Frank reforms. In contrast, Democratic nominee Hillary Clinton last week touted the Consumer Financial Protection Bureau's “forceful response” to the Wells Fargo scandal, adding that it was “a stark reminder of why we need a strong consumer watchdog to safeguard against unfair and deceptive practices.”
Lisa Donner, executive director of Americans for Financial Reform, a DC-based watchdog group that has played an important part in defending the CFPB from its opponents, said, “The current Wells Fargo scandal reveals why we need a strong regulatory agency that has the backs of bank consumers as well as employees.”
“Wells Fargo’s action to eliminate sales quotas is a hard-won victory for front-line bank workers like me who have been coming together in the Committee for Better Banks and working to end to high-pressure sales goals that hurt our families and communities,” said Julie Miller, a former Wells Fargo branch manager and a member of the Committee for Better Banks.
“Wells Fargo got into this scandal because it turned a deaf ear to the alarms sounded by consumers and its own workers, and its experience proves that these sales goals have no place in the consumer banking industry,” Miller said. “Predatory sales goals are rampant at big banks across the country, and we will keep on working and organizing to make sure Wells Fargo makes good on its word and that other banks follow suit by implementing fair business practices for workers and customers.”
By Peter Dreier
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Meet the Two-Story, Top Hat Wearing, Cigar-Chomping Inflatable Pig
WNYC - December 4, 2013, by Stephen Nessen - Across New York City, small groups of pro-union activists, supporting various causes, are holding flash demonstrations. What they have in common is a...
WNYC - December 4, 2013, by Stephen Nessen - Across New York City, small groups of pro-union activists, supporting various causes, are holding flash demonstrations. What they have in common is a belief that the pro-labor momentum that began with Bill de Blasio’s election will lead to higher wages for workers and a union-friendly administration.
Customers sipping coffee and reading the paper at the Grand Café, outside of Grand Central Terminal had their quiet morning smashed by a dozen protesters and the Rude Mechanical Orchestra marching band. They claimed four workers were unfairly fired for organizing.
Over at the High Line, where condos can sell for millions of dollars, another labor group that represents building workers, unfurled a banner that read: "High Line Living, Low Wage Workers," in front of a building they say pays its workers a starting wage of $13.37 an hour.
And on the Upper East side, protesters inflated a nearly 2-story, bloated, top-hat-wearing, cigar chomping pig outside the home of Cablevision director Vincent Tese. They complained about Cablevision's alleged anti-union busting tactics.
Buoyed by Bill de Blasio’s narrative about income inequality in the city , protesters claim on their website that “The sun is setting on a city run by the and for the 1 percent.
While protests are planned for the rest of the week, any changes that might happen will have to wait until after the new mayor takes office in January.
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GOP pours nearly $1M into Arizona special election
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in Arizona, where the outcome of the special election in the 8th district is perhaps...
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in Arizona, where the outcome of the special election in the 8th district is perhaps less important than the margin.
Watch the video here.
Prominent Economists Question Fed Inflation Target
06.08.2017
Dear Chair Yellen and the Board of Governors,
The end of this year will mark ten years since the beginning of the Great Recession. This recession and the slow recovery...
06.08.2017
Dear Chair Yellen and the Board of Governors,
The end of this year will mark ten years since the beginning of the Great Recession. This recession and the slow recovery that followed was extraordinarily damaging to the livelihoods and financial security of tens of millions of American households. Accordingly, it should provoke a serious reappraisal of the key parameters governing macroeconomic policy.
One of these key parameters is the rate of inflation targeted by the Federal Reserve. In years past, a 2 percent inflation target seemed to give ample leverage with which the Fed could lower real interest rates. But given the evidence that the equilibrium interest rate had fallen substantially even prior to the financial crisis, and that the Fed’s short-term policy rate remained at zero for seven years without sparking any large acceleration of aggregate demand growth, a reassessment of this target seems warranted. Such a reassessment is particularly appropriate when the lack of evidence that moderately higher inflation would harm Americans’ standard of living is juxtaposed with the tremendous evidence that a tighter labor market would improve Americans’ standards of living.
Some Federal Reserve policymakers have acknowledged these shifting realities and indicated their willingness to reconsider the appropriate target level. For example, San Francisco Federal Reserve President John Williams noted the need for central banks to “adapt policy to changing economic circumstances,” in suggesting a higher inflation target, and Boston Federal Reserve President Eric Rosengren cited the different context in which the inflation target was set in emphasizing the need for debate about the right target. (1) (2) In May, Vice Chair Stanley Fischer highlighted the Canadian system of reconsidering the inflation target every five years, saying, “I can envisage – say, in the case of inflation targeting – a procedure in which you change the target or you change the other variables that are involved on some regular basis and through some regular participation.” (3)
The comments made by Fischer, Rosengren, and Williams all underscore the ample evidence that the long-term neutral rate of interest may have fallen. Even if a 2 percent inflation target set an appropriate balance a decade ago, it is increasingly clear that the underlying changes in the economy would mean that, whatever the correct rate was then, it would be higher today. To ensure the future effectiveness of monetary policy in stabilizing the economy after negative shocks – specifically, to avoid the zero lower bound on the funds rate – this fall in the neutral rate may well need to be met with an increase in the long-run inflation target set by the Fed.
More immediately, new, post-crisis economic conditions suggest that a reiteration of the meaning of the Fed’s current target is in order. In its 2016 statement of long-run goals and strategy, the Federal Open Market Committee wrote: “The Committee would be concerned if inflation were running persistently above or below this objective.” Some FOMC participants, however, appear to instead consider 2 percent a hard ceiling that should never be breached, and justify their decision-making on that basis. It is important that the Federal Reserve makes clear – and operates policy based on – its stated goal that it aims to avoid inflation being either below or above its target.
Economies change over time. Recent decades have seen growing evidence that developed economies have harder times generating faster growth in aggregate demand than in decades past. Policymakers must be willing to rigorously assess the costs and benefits of previously-accepted policy parameters in response to economic changes. One of these key parameters that should be rigorously reassessed is the very low inflation targets that have guided monetary policy in recent decades. We believe that the Fed should appoint a diverse and representative blue ribbon commission with expertise, integrity, and transparency to evaluate and expeditiously recommend a path forward on these questions. We believe such a process will strengthen the Fed as an institution and its conduct of monetary policy, and help ensure wise policymaking for the years and decades to come.
Sincerely,
Dean Baker Center for Economic and Policy Research Laurence Bell Johns Hopkins University Heather Boushey Washington Center for Equitable Growth Josh Bivens Economic Policy Institute Brad DeLong University of California, Berkeley Tim Duy University of Oregon Joseph Gagnon Peterson Institute Narayana Kocherlakota University of Rochester Lawrence Mishel Economic Policy Institute Manuel Pastor University of Southern California William Spriggs Howard University Mark Thoma University of Oregon Valerie Wilson Economic Policy Institute Justin Wolfers University of Michigan Gene Sperling Obama Administration Economist Joseph Stiglitz Columbia University Jared Bernstein Obama Administration Economist David Blanchflower Dartmouth College Jason Furman Peterson Institute Mike Konczal Roosevelt Institute Marc Jarsulic Center for American Progress Michael Madowitz Center for American Progress
(1) John Williams, “Monetary Policy in a Low R-Star World,” August 15, 2016.
(2) Sam Fleming, “Inflation Goal May Be Too Low, says Fed’s Rosengren,” Financial Times, April 20, 2015.
(3) Greg Robb, “Fed’s Williams Backs Changing Central Bank’s Strategy to Price-Level Targeting,” Market Watch, May 5, 2017.
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Activists: US Justice Department Response to Baltimore Police Racism Falls Short
Activists: US Justice Department Response to Baltimore Police Racism Falls Short
The response by the US Department of Justice to exposing Baltimore Police Department (BPD) violations of citizens’ constitutional rights falls short of addressing the systemic problem of racism in...
The response by the US Department of Justice to exposing Baltimore Police Department (BPD) violations of citizens’ constitutional rights falls short of addressing the systemic problem of racism in US policing, activists said.
WASHINGTON (Sputnik) — "[The Department of Justice] is being forced to look like it is responsive, so to speak, but it also can’t deal with the systemic nature of things," Pan-African Community Action activist Netfa Freeman told Sputnik.
On Wednesday, the Justice Department released a report concluding that the BPD systematically engaged in conduct that violates the US Constitution, and disproportionately targets African-Americans. In response, the Justice Department entered into a consent agreement with the BPD to reform the latter.
"We know it is not just Baltimore and it’s not just ‘bad apples’," Freeman said. The report is still "treating things like they are isolated incidents, not like it is a systemic problem or an epidemic," he said of anti-black police misconduct.
In a forum hosted by the Institute for Policy Studies, policy advocate at the Center for Popular Democracy, Marbre Stahly-Butts, said that while it was "important" for the federal government to articulate the problem of police abuses, Justice Department's actions did not go far enough.
An anti-terrorism rehearsal is held targeting a possible bomb attack during the Olympic Games at the main bus station in Rio de Janeiro, Brazil on May 12, 2016
Stahly-Butts argued the Justice Department should leverage the findings of the report to cut off funding to local law enforcement caught violating federal law.
"If we find… that you are violating the basic human rights of people in this city, we, as the government, will not give you taxpayer money to do that," Stahly-Butts said.
The Justice Department report covered police misconduct that took place from January 2010 through May 2015. The investigation was launched in 2015 following the widely publicized death of Freddie Gray, a 25-year-old African-American who died from wounds he sustained while in BPD custody.
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Editorial: Automatic signup gets more voters to polls
Among millennials, voter turnout in Illinois ranks 47th in the country, according to the political advocacy group Common Cause. In the 2014 primary election, their turnout in Chicago wards was as...
Among millennials, voter turnout in Illinois ranks 47th in the country, according to the political advocacy group Common Cause. In the 2014 primary election, their turnout in Chicago wards was as low as 9 percent.
We don’t have to settle for such low numbers.
Illinois should look to Oregon and California, which recently approved automatic voter registration. Oregon did it in March and California OKd it just a week ago.
Under automatic voter registration, people are automatically registered when they get or update a driver’s license or state identification card. An opt-out provision is included for people who don’t want to register.
Illinois has 9.7 million residents who are eligible to vote, but 2.1 million of them are not registered, state Sen. Andy Manar, D-Decatur, said last week at a meeting of the Senate Executive Subcommittee.
Automatically adding unregistered people to the voting rolls could drive up voter turnout. It also would help county clerks by automatically updating voter addresses when people move and update their driver’s licenses. The Center for Popular Democracy estimates that nationwide automatic voter registration system would add 56 million voters to the rolls.
Cook County Clerk David Orr argues government has a responsibility to use technology to improve the voting process.
“Nowadays the burden should be on the government,” Orr says.
Exactly.
Source: Chicago Sun-Times
Group calls on Charlie Dent to pass immigration reform
WFMZ-TV – August 20, 2013, by Will Lewis -
ALLENTOWN, Pa. – A group rallying for immigration reform is taking its message to Lehigh Valley Congressman Charlie Dent and other Republicans....
WFMZ-TV – August 20, 2013, by Will Lewis -
ALLENTOWN, Pa. – A group rallying for immigration reform is taking its message to Lehigh Valley Congressman Charlie Dent and other Republicans. They want action now but no action will be taken until Congressional leaders return to Washington in September.
“I am one of millions of children that had to be separated from their parents because of a broken immigration system,” said Tatiana Tooley, a community activist speaking to the group.
This group hopes Senate Bill 744, immigration reform, is the first topic Congress discusses.
“If the GOP supports this, the GOP is making a statement that they truly value family unity,” added Tooley.
Lehigh Valley Congressman Charlie Dent says he does support immigration reform. He also knows the issue is a complicated one.
“Immigration reform will be dealt with,” said Dent. “It will be dealt with a bit differently than the Senate which chose to take up one massive bill. The House will deal with this in pieces.”
Senate Bill 744 has already passed and some wish congressional leaders would look at that piece of legislation first before coming up with a new set of rules.
“If they have another bill it will take more time,” said organizer, Fernando Vazquez.
“We’ve gotten away from a dialogue and we’ve polarized on not only this issue but a lot of issues,” said Allentown Mayor Ed Pawlowski. “We’ve polarized on one side or the other. that’s not how good government works.”
The people say waiting means more children separated from their families, and more people waiting to live the American dream.
“We have to deal with this thing responsibly,” said Dent. “I think we can and I think we can get there. But it’s going to be a lot of work.”
“The new leader could be Charlie Dent and one way to show leadership is passing this bill,” added Vazquez. “Because many people will vote for a Republicans, they need to remember that.
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Milwaukee faces historic opportunity to transform schools. Here’s how.
Milwaukee faces historic opportunity to transform schools. Here’s how.
Milwaukee spends a greater fraction of its general fund on policing than many other major cities. A 2017 report from the Center for Popular Democracy, Law for Black Lives, and Black Youth Project...
Milwaukee spends a greater fraction of its general fund on policing than many other major cities. A 2017 report from the Center for Popular Democracy, Law for Black Lives, and Black Youth Project 100, compared 11 other cities and found they devoted 25 to 40 percent of their general fund expenditures to policing — Milwaukee spent 47 percent, or nearly $300 million.
Read the full article here.
Report Shows Unemployment Rate in Twin Cities 4x Higher for Blacks than Whites
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national day of action, showing that the unemployment rate for Blacks in the Twin...
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national day of action, showing that the unemployment rate for Blacks in the Twin Cities is four times higher than for whites, calling on the Federal Reserve to prioritize full employment in all communities. "Minnesota is a great place to live, if you're white," said NOC executive director Anthony Newby. "The unemployment rate is 2.8%. But for black folks, unemployment is over ten percent--crisis levels. The Federal Reserve is considering raising interest rates because Wall Street thinks the economy has recovered. But that would only increase unemployment, especially in communities of color."
"Historically, the African-American community has been cut out of opportunities the government was supposedly providing to everyone--for example, homeownership programs that African-Americans could not participate in, public education programs that African-Americans were either cut out of or cut short, livable wage jobs that African-Americans would not be considered for," said Pastor Paul Slack, pastor of New Creation Church in Minneapolis and President of ISAIAH. "It's time for the Federal Reserve to act specifically in the interest of the African-American community and other low-income communities, by keeping interest rates low so that we can rebuild the wealth that was stolen from us through this recent economic crisis."Joe Elliott worked at the Target Center for five years until he was unexpectedly laid off. "I liked the job--I met a lot of great people, and went to concerts and games. But I didn't like the money. I deserve more than $8.40/hour. It wasn't supporting my daily living--bills, kids, transportation. But it's hard looking for a job as an African-American male.""The Minneapolis Fed President, Narayana Kocherlakota, has expressed support for keeping interest rates low," said Anthony Newby. "That's great. But he's also retiring in a year. We need an open and transparent process for community input on the next Minneapolis Fed president."The Federal Reserve has a key policymaking meeting coming up in mid-March.
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