Dean Baker: Why We Must Oppose the Coming Fed Interest Rate Hike
That message comes amid a grassroots effort this week designed to line up organizations behind a call on the Fed to not increase interest rates before the economy reaches full employment.
There is a widespread expectation that the Fed will raise interest rates sometime in 2015, ostensibly to keep the economy from “overheating” and driving up the rate of inflation. The problem is, as Baker pointed out in his presentation, there is no inflation threat on the horizon, but there is a very real threat of choking the economic recovery and driving up unemployment if interest rates rise.
“This is a huge, huge issue and it is largely ignored by much of the progressive movement, largely because people don’t understand it,” Baker said. “And I would say to a large extent that’s how they” – the bankers and the corporate class that has the ear of the Federal Reserve’s members – “want it.”
Baker has been working closely with the Center for Popular Democracy’s “Fed Up” campaign, which has been pushing the Fed to focus on moving the economy toward full employment as a top priority.
The campaign has emphasized that after more than five years of supposed economic “recovery,” labor participation rates remain at historic lows, wages are only now beginning to increase slowly, and unemployment rates among African Americans and in a number of low-income communities remain well into double digits.
Citing the push in Congress to get the Keystone XL pipeline built, which some estimates say would produce about 36,000 jobs during its construction, Baker said, “if the Fed raises interest rates we’re talking about kicking millions of people out of jobs.” If instead the Fed worked to get the unemployment rate down to about 4 percent, “that’s about 4.5 million people … that’s more than 100 XL pipelines.”
The Fed Up Campaign is seeking organizations willing to sign a petition calling on the Federal Reserve to not increase interest rates while there are segments of the economy with high unemployment and stagnant wages. “Raising interest rates in 2015 would be a catastrophic mistake. The American economy needs to see significantly more wage growth, not less,” the petition says.
The full petition is posted on our website. Progressive organization leaders who want to sign the petition can do so via this link.
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Five takeaways from Colorado's campaign finance reports
KUSA - Candidates and campaigns had to file their latest round of finance reports to the Secretary of State’s office Monday.
Here’s what we learned from reading those reports.
1)...
KUSA - Candidates and campaigns had to file their latest round of finance reports to the Secretary of State’s office Monday.
Here’s what we learned from reading those reports.
1) Tobacco companies have deep pockets.
The No Blank Checks in the Constitution committee has raised about $5 million to keep the tobacco tax in Amendment 72 from passing.
That’s more money than any other campaign has raised so far this cycle, and it all comes from one source: Altria Client Services.
The company is a subsidiary of Altria (formerly Phillip Morris) -- one of the world’s largest tobacco companies.
2) ColoradoCareYES is struggling.
The group pushing universal health care through Amendment 69 raised just $10,000 during the last filing period.
That brings their total to about $320,000. In contrast, Coloradans for Coloradans, has raised nearly $4 million this cycle.
In addition to its fundraising woes, the campaign has also suffered from some surprising opposition. Democratic Gov. John Hickenlooper and Sen. Michael Bennet both oppose the amendment. And so does the liberal group Progress Now.
3) Most of the minimum wage money is coming from out of state.
The group Colorado Families for a Fair Wage wants you to vote to raise the state’s minimum wage to $12 an hour.
But the majority of the $2.3 million it's raised comes from groups in New York and California.
The campaigns biggest donors are Civic Participation Action Fund, The Fairness Project and The Center for Popular Democracy Action Fund.
The campaign against raising the minimum wage is called Keep Colorado Working.
Most of its money comes from industry groups like the Hospitality Issue PAC, which had a Denver address.
That might make you think it’s local money fighting the minimum wage campaign, but the PAC’s funded by national companies like McDonald’s and the National Restaurant Association.
4) The physician assisted suicide campaign is raising and spending some serious cash
Yes on Colorado End of Life Options has raised about $4.8 million to pass Proposition 106, which would let terminally ill patients purchase medications to end their lives.
The campaign’s biggest expenditure is $2.9 million to Blue West Media for advertising. That means we’re likely to see a lot of ads about the proposition between now and Nov. 8.
5) Democrats are outraising Republicans in three key Colorado Senate races.
The winners of Colorado Senate districts 19, 25 and 26 will determine whether Republicans retain control of the chamber.
If Republicans lose all three races, the Democrats will likely gain control of the entire legislature.
All the Democratic candidates are ahead of their opponents when it comes to dollars raised so far.
The biggest gap is in Senate District 19. Incumbent Republican Sen. Laura Woods is $70,000 behind her challenger, Rachel Zenzinger.
We will have to wait and see whether more money translates into more votes
By 2016 KUSA
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Progressive Activists Keep Up Campaign to Thwart Rate Rises
NEW YORK—A group of activists lobbying the Federal Reserve to hold off on raising interest rates is pressing its campaign amid signs from the central bank that it is moving closer to lifting...
NEW YORK—A group of activists lobbying the Federal Reserve to hold off on raising interest rates is pressing its campaign amid signs from the central bank that it is moving closer to lifting borrowing costs.
Members of the Fed Up Coalition, a left-leaning organization affiliated with the Center for Popular Democracy and connected with labor unions and community groups, met with Fed Chairwoman Janet Yellen and other central bank governors late last year.
They recently have met with the leaders of the Boston, Kansas City and San Francisco Fed banks, and are scheduled to meet next with Atlanta Fed President Dennis Lockharton Aug. 12 and with New York Fed President William Dudley on Aug. 14.
Most Fed officials, including Ms. Yellen, have indicated they expect to start raising short-term interest rates this year if the economy keeps improving. They have held their benchmark rate near zero since December 2008 to bolster the economy.
The activists say they want the Fed to hold off a bit longer to ensure the expansion benefits all Americans, not just the wealthiest.
They also want the Fed to become more open about its actions and how it selects the presidents of the 12 regional reserve banks.
And they want the Fed to engage with banks to promote affordable housing.
“Over the last few weeks we’ve had a lot of success engaging with Fed officials,” said Ady Barkan, who leads the Center for Popular Democracy Fed campaign. His group is “seeing that [Fed officials] are really being responsive” to the case they are making, he said.
Mr. Barkan said a recent meeting with St. Louis Fed President James Bullard was particularly fruitful. Mr. Bullard said in an interview with the Journal Friday the Fed has a balancing act when it comes to setting interest rate policy.
He favors raising interest rates this year and says the central bank’s September meeting is likely a good time to start.
“I think I have the better policy for the type of people they want to help,” Mr. Bullard said. “If you go for too much in monetary policy you can get some sort of financial bubbles and imbalances that fall apart and cause a recession,” and modest rate rises soon will help reduce those risks.
The activist group also is calling for greater representation on regional banks’ boards of directors for noncorporate interests. By law, the regional Fed directors are drawn from a mix of financial industry professionals, community and business leaders. Each board oversees individual reserve bank operations, and the directors from outside the financial sector manage the selection of new reserve bank presidents.
Mr. Barkan said Fed boards are dominated by the perspectives of leaders from large institutions. While he welcomes union and nonprofit representation on the boards, Mr. Barkan said the diversity should extend further and include a more ground-level perspective on how the economy is functioning.
Jean-Andre Sassine, age 48, of New York City, plans to attend the group’s meeting with Mr. Dudley. Mr. Sassine, who said he works on television and advertising productions, became interested in the Fed when his family ran into difficulties during the recession. He said that led him to ask questions about the role the central bank was playing to help everyday people.
When he went with the group to the meeting with Ms. Yellen, Mr. Sassine said he walked away with “the sense they aren’t used to dealing with people. It seems like they just get reports” and work off that data, and little else, to make their decisions, Mr. Sassine said.
“We are supposed to have input and recognition and we don’t have it,” Mr. Sassine said. “It can’t all be corporate heads and bankers…We’ve got to have real people who buy groceries” on the Fed’s various advisory boards, he said.
The Fed has tried to broaden its public outreach in recent years. The central bank this year has been recruiting people to serve on a new Community Advisory Council, which will meet twice a year with Washington-based Fed governors. Ms. Yellen last year visited a job-training program in Chicago and a nonprofit in Chelsea, Mass., that helps unemployed people find work.
Mr. Dudley has conducted a number of public tours of the New York Fed’s district, in which he has met with business leaders, academics, community groups and others. In a Wall Street Journal interview in March 2014 he explained he had been using the tours to make the Fed seem less abstract. And he also said the visits had in particular deepened his understanding of the housing crisis and sharpened his response to those troubles.
Staff at the regional Fed banks who have met with the activists say their meetings are part of regular efforts to engage with their communities, and can offer valuable insight into the state of the economy.
In a statement, the Atlanta Fed said it regularly meets with community based interest groups “through its various outreach programs including community and economic development, economic education, and supervision and regulation.”
Source: The Wall Street Journal
The Fed's lack of diversity is hurting its judgment
Federal Reserve Chair Janet Yellen found herself in the hot seat at the recent bi-annual Humphrey Hawkins testimony as members of Congress challenged her over the lack of diversity among the Fed's...
Federal Reserve Chair Janet Yellen found herself in the hot seat at the recent bi-annual Humphrey Hawkins testimony as members of Congress challenged her over the lack of diversity among the Fed's ranks.
Asked by Senator Elizabeth Warren whether she was concerned that 10 of the 12 Fed's regional presidents are men, Yellen answered that she did believe it was "important to have a diverse group of policymakers who can bring different perspectives to bear."
The nation's central bank has recently come under intense scrutiny for appointing predominantly white men from the banking and corporate sectors to leadership positions. Last month, 127 members of Congress sent a widely publicized letter to Yellen calling for her to commit to leadership that better reflects the diversity of the United States.
For the last two years, the Fed Up coalition – comprised of community organizations and labor groups in each of the 12 Federal Reserve districts – has sat down with Yellen and other Fed policymakers to ask that more diverse candidates are considered for directorships at the Federal Reserve Banks, and that the process for selecting Federal Reserve Bank presidents be opened up to greater transparency and public input.
The call for a Fed membership that reflects America's diversity was enshrined in a law passed by Congress 40 years ago, an important thing to keep in mind when considering the modest recent progress touted by Yellen. The law requires the Federal Reserve to "represent the public, without discrimination on the basis of race, creed, color, sex, or national origin, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers."
While we are encouraged that Yellen became the first woman ever to hold the position of Fed Chair in 2014, the reality of the Federal Reserve is far from representative of the public. Currently, 11 of the 12 regional Reserve Bank presidents are white and 10 of the 12 are men. Not a single Reserve Bank president is Black or Latino, which means there is no representation from the communities hardest hit by the 2008 financial crisis. In fact, there has never been an African American president of a Reserve Bank in the history of the Federal Reserve System.
Moreover, all voting members of the Fed's powerful interest rate-setting Federal Open Market Committee (FOMC) are white.
This is a problem. The power for ensuring the country reaches full employment rests solely with people who do not share the lived experiences of those most affected by their policies. The voices of women, African-Americans, Latinos, and representatives of consumers and labor are being shut out of key discussions over our economic future.
The impact of the economic crisis was not experienced uniformly across different communities, with the vaunted recovery never reaching some segments. The unemployment rate for African-Americans currently stands at 9 percent, more than double the unemployment rate for white Americans of 4.3 percent. The Latino unemployment rate of 5.6 percent is also worse than what it is for white Americans.
In a marked shift from her stance a year ago, Yellen noted racial disparities in economic outcomes in her opening remarks to Congress and stressed the importance of monitoring "different groups in the labor market to see if what we perceived as broad-based labor market improvement is being widely shared."
"Elizabeth Warren told Janet Yellen that the current process for appointing regional bank presidents 'is broken.'"
Compare this with her testimony last year, when Yellen dismissed the impact full employment can have on reducing racial disparities in unemployment and wages, claiming the Fed's tools were limited.
Yellen separately acknowledged racial disparities and the need for greater diversity among Fed leadership, but stopped short of linking the two. We believe the two are inextricably linked – a Fed filled with white male bankers will never be able to fully relate to impoverished communities of color.
That is why we have offered Yellen a slate of 39 candidates from which she can appoint directors to sit on the boards of the regional Banks. Drawn from all 12 Fed regions, the candidates are racially diverse, gender balanced and come from a range of backgrounds in labor, academia, and community-based organizations.
Elizabeth Warren told Janet Yellen that the current process for appointing regional Bank presidents "is broken." Yellen can demonstrate her commitment to diversity by appointing any of these 39 candidates to open board director positions.
Warren and other members of Congress in both houses are standing with low-wage workers to shine a light on our nation's opaque but vitally important economic policymaking institution. It's time for the Fed to heed the call on behalf of the millions of Americans around the country who are still suffering from the devastating impact of the 2008 crisis. It's time for the Fed to truly represent the public.
By Dushaw Hockett
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We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal of the Affordable Care Act. Who are we? We are the thousands of people who...
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal of the Affordable Care Act. Who are we? We are the thousands of people who attended town hall meetings around the country to confront our elected officials, marched on the streets, and occupied the offices of our senators until we got arrested.
Early Friday morning, dozens of us who have been active in the fight against the ACA repeal stood outside the Capitol, bleary-eyed from exhaustion and tears and holding on to each other for moral support. We were stunned and elated when the ‘skinny’ repeal vote failed.
Read the full article here.
Jeff Flake Explains Why He Called for a Delay on the Kavanaugh Vote
Jeff Flake Explains Why He Called for a Delay on the Kavanaugh Vote
As for Ana Maria Archila and Maria Gallagher, the women who confronted him in the elevator, Flake said their intervention was “poignant,” but that he believed “some of their concern was how...
As for Ana Maria Archila and Maria Gallagher, the women who confronted him in the elevator, Flake said their intervention was “poignant,” but that he believed “some of their concern was how Kavanaugh would rule on the court. They may have been there prior to the allegations against him because of his position on some issues.”
Read the full article here.
As Federal Reserve Selects New Top Officials, Coalition Calls for Public Input
New York Times - November 10, 2014, by Binyamin Appelbaum - A coalition of community...
New York Times - November 10, 2014, by Binyamin Appelbaum - A coalition of community groups and labor unions wants the Federal Reserve to change the way some Fed officials are appointed, criticizing the existing process as secretive, undemocratic and dominated by banks and other large corporations.
In letters sent to Fed officials last week, the coalition called for the central bank to let the public participate in choosing new presidents for the regional reserve banks in Philadelphia and Dallas. The current heads of both banks plan to step down in the first half of 2015.
The Fed’s chairwoman, Janet L. Yellen, has agreed to meet on Friday with about three dozen representatives of the groups to hear their concerns.
“The Federal Reserve has huge influence over the number of people who have jobs, over our wages, over the number of hours that we get to work, and yet we don’t have discussion and engagement over what Fed policy should be,” said Ady Barkan, a lawyer with the Center for Popular Democracy, a Brooklyn-based advocacy group that is orchestrating the campaigns. “More people’s voices need to be heard.”
A spokeswoman for Ms. Yellen confirmed the meeting but declined to comment on the issues raised by the groups.
The Philadelphia Fed said in an email that the institution “is conducting a broad search for its next president and will consider a diverse group of candidates from inside and outside the Federal Reserve System.”
James Hoard, a spokesman for the Dallas Fed, said the bank’s board would meet on Thursday to discuss the search process.
The campaign is part of a broader increase in political pressure on the Fed, which is engaged in a long-running campaign to stimulate the economy that some liberals regard as insufficient and some conservatives see as both ineffective and dangerous. Mr. Barkan led a picket line in support of the Fed’s efforts in August outside the annual monetary policy conference at Jackson Hole, Wyo.
House Republicans, meanwhile, have passed legislation that seeks to reduce the Fed’s flexibility in responding to economic downturns, arguing that such efforts are destabilizing.
The Fed acts like a monolith, but it has a complicated skeleton. Most power rests with a board of governors in Washington, who are nominated by the president and confirmed by the Senate. But operations are conducted through 12 regional banks, each of which selects its own president. And those presidents rotate among themselves five of the 12 seats on the Federal Open Market Committee, which sets monetary policy.
The two presidents who have said they plan to step down are, by coincidence, among the most outspoken internal critics of the Fed’s campaign to stimulate the economy. Charles I. Plosser, president of the Philadelphia Fed since 2006, plans to retire at the end of March. Richard W. Fisher, president of the Dallas Fed since 2005, is required to step down by the end of April, though he has not set a date.
Their replacements will be selected by the board of each reserve bank. Each board has nine members, including three bankers, but under the 2010 Dodd-Frank Act, only the nonbank members can participate in the process. The banks in each reserve district, however, still elect three of those six nonbank members. The other three, including the chairman and vice chairman, are appointed by the Fed board in Washington.
By law, the boards are supposed to represent a diverse set of viewpoints, including “labor and consumers.” But the 72 nonbank board members are predominantly corporate executives. Just eight are leaders of community groups; two more are leaders of labor groups.
Corporate executives exclusively make up the boards of the St. Louis and Richmond regional banks. The Dallas Fed’s board includes the presidents of the Houston Endowment — a charitable organization — and the University of Houston. The Philadelphia Fed has five executives and the president of the University of Delaware.
“I look at that list and it doesn’t strike me that most of those folks are representing the public,” Kati Sipp, director of Pennsylvania Working Families, a nonprofit advocacy group that is one of the signatories of the recent letter, said of the Philadelphia Fed’s board. “We believe it is important for the people who are making economic policy to hear from the regular folks on the ground who are being affected by those decisions.”
The two dozen signatories also include the Pennsylvania AFL-CIO, New Jersey Communities United and W. Wilson Goode Jr., a Philadelphia city councilman. The letter asks for the Fed to disclose basic information about the selection process, including the timetable, criteria and, eventually, names of candidates. It also seeks search committee seats and opportunities to question the candidates publicly.
The selection process is secretive, but control has increasingly shifted from the regional banks to the board of governors. Beginning under the leadership of Alan Greenspan, a former Fed chairman, the central bank has sought presidents who can contribute to making monetary policy. The board provides informal guidance during the winnowing process, and candidates travel to Washington to meet with the governors.
As a result of that trend, 10 of the 12 sitting presidents are former Fed staffers, economists or both. Mr. Fisher, a former investor, is one exception. The other is Dennis P. Lockhart, a former banker who leads the Atlanta Fed — and is the next president who will reach retirement age.
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Falciani celebra que siete directivos del Santander declaren en la Audiencia Nacional por blanqueo
Falciani celebra que siete directivos del Santander declaren en la Audiencia Nacional por blanqueo
El ex informático del banco suizo HSBC, Hervé Falciani, que destapó los nombres de presuntos evasores fiscales en bancos helvéticos, ha celebrado que siete directivos del Banco Santander estén...
El ex informático del banco suizo HSBC, Hervé Falciani, que destapó los nombres de presuntos evasores fiscales en bancos helvéticos, ha celebrado que siete directivos del Banco Santander estén citados a declarar en la Audiencia Nacional por un delito de blanqueo de capitales, ya que, según ha dicho, "cada día hay ejemplos similares en otros países".
Lea el artículo completo aquí.
Los estados deben ser líderes en la protección de los inmigrantes
Los estados deben ser líderes en la protección de los inmigrantes
Si bien ciertos candidatos a la presidencia han ocupado los titulares con sus indignantes propuestas de deportar a los inmigrantes indocumentados, el hecho es que los inmigrantes se van a quedar y...
Si bien ciertos candidatos a la presidencia han ocupado los titulares con sus indignantes propuestas de deportar a los inmigrantes indocumentados, el hecho es que los inmigrantes se van a quedar y hacer de Estados Unidos un lugar más próspero.
Dada esa realidad –y la total de inacción a nivel federal respecto a una reforma de inmigración– los estados han comenzado poco a poco a adoptar medidas para tratar a los inmigrantes con dignidad y darles la oportunidad de una vida mejor.
Un estudio reciente de la Fundación RAND concluyó que el número de normas a nivel estatal relativas a la inmigración aumentó diez veces del año 2005 al 2013, y durante el 2015, 46 estados aprobaron 391 leyes relacionadas con inmigración.
Muchas de las leyes alientan a los inmigrantes a salir de la clandestinidad. Por ejemplo, doce estados han adoptado medidas para permitir que los inmigrantes indocumentados obtengan licencia de conducir y 20 estados permiten que los inmigrantes se matriculen como residentes en universidades e instituciones de enseñanza superior del gobierno. Por otro lado, solo tres estados prohíben explícitamente que los inmigrantes indocumentados se inscriban en instituciones de educación superior.
Nueva York ha sido un líder en este frente. En el año 2015, la ciudad de Nueva York se convirtió en la ciudad más grande del país en inaugurar una tarjeta de identidad municipal. Desde entonces, la política ha sido un gran éxito, pues cientos de miles se han inscrito, muchos de ellos inmigrantes que anteriormente no podían abrir una cuenta de banco o siquiera obtener una tarjeta de biblioteca. Ahora se ha reanudado e intensificado la campaña a favor de las licencias de conducir en el estado.
Sin embargo, mientras Nueva York y otros estados avanzan valientemente, algunos estados están dando un paso atrás. Además de políticas a favor de los inmigrantes, el estudio de RAND también reveló que algunos estados están tomando medidas para hacer la vida de los inmigrantes más difícil y peligrosa al redoblar la actividad policial y privar a los inmigrantes de beneficios esenciales.
En esta lista, Arizona es uno de los ejemplos más atroces. A pesar de que se ha criticado mucho al estado por la ley antiinmigrantes del 2010, en meses recientes los legisladores estatales han tomado medidas para hacer que Arizona sea incluso más hostil con sus inmigrantes. La legislatura está promoviendo una serie de medidas legislativas que, entre otras cosas, prohibirían que las ciudades sirvan de santuario y dificultarían solicitar identificación municipal.
No es la única manera en que los legisladores estatales están tratando de restarles poder a las ciudades de Arizona, que tradicionalmente han acogido más a los inmigrantes. Los legisladores también están a punto de aprobar una medida que penaliza a las ciudades por adoptar un salario mínimo más alto o licencias por enfermedad, negándoles fondos para servicios como los departamentos de policía y bomberos.
En efecto, las medidas permitirían que Arizona imponga prácticamente un golpe de estado y haga caso omiso de los deseos de sus propios ciudadanos. No es de sorprender, pues se trata de un estado donde se permitió que fuera necesario hacer fila durante horas en los recintos para las elecciones primarias de los republicanos el mes pasado, negándoles a muchos el fundamental derecho al voto.
Y para que no pensemos que el problema se limita al otro extremo del país, hay señales de peligro aquí mismo. Varios senadores estatales están tratando de prohibir disimuladamente las ciudades santuario en Nueva York al esconder una nueva disposición en el presupuesto estatal, lo que aumenta la probabilidad de que pase desapercibida.
Ya no se pueden tolerar medidas que merman la democracia y perjudican a los inmigrantes. Los estados como Arizona han ayudado a marcar la pauta para las virulentas elecciones contra los inmigrantes de este año. Antes de que se haga incluso más daño, debemos hacer todo lo posible para poner un alto a las medidas contra los inmigrantes.
By Shena Elrington
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How Twitter vaulted 'Abolish ICE' into the mainstream
Ana Maria Archilla the co-executive director of Center for Popular Democracy, said that at first progressives "were worried about the political implications."
But "when Randy could say it...
Ana Maria Archilla the co-executive director of Center for Popular Democracy, said that at first progressives "were worried about the political implications."
But "when Randy could say it in rural Wisconsin, in Paul Ryan, territory,” she continued, activists felt they had made a breakthrough.
Read the full article here.
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