Campaign News

Source: Wall Street Journal

Federal Reserve leadership is overly male, almost entirely white and drawn too frequently from the banking community, according to a group critical of the central bank.

A new report from the Center for Popular Democracy’s Fed Up campaign analyzes the types of people populating the Fed’s Washington-based board of governors, the regional bank presidencies and the regional bank boards of directors.

The report notes that all voting members of the central bank’s rate-setting Federal Open Market Committee and nearly all the regional bank presidents are white. Just two of the 12 presidents and two of the five governors are women.

“These key decision-making bodies remain dramatically unbalanced and unrepresentative of the vast majority of people who participate in the economy,” said the group, which has called for more public input into the selection of regional bank presidents and their performance evaluations.

The center said the composition of the Fed’s leadership bodies violates the spirit of the law that created the central bank, which calls for membership drawn from many different industries and interests.

A Fed spokesman responded to the criticism about the regional bank boards by saying the central bank has “focused considerable attention” to finding directors “with diverse backgrounds and experiences” that represent agriculture, commerce, industry, services, labor and consumers, as the law requires.

“We also are striving to increase ethnic and gender diversity,” the spokesman said, noting a rise in minority representation on the boards from 16% in 2010 to 24% today. Female representation has risen from 23% to 30% over the same period, and all told, 46% of regional directors now are either a woman or a member of a racial minority, the spokesman added.

Fed Chairwoman Janet Yellen is the central bank’s first female leader.

The Fed Up group, with a membership drawing heavily from labor unions and community organizations, is a regular critic of the central bank. It has argued in recent months that the Fed shouldn’t raise short-term interest rates and has pressed its case in private meetings with Fed officials. Several of its members appeared outside the central bank’s research conference in Jackson Hole, Wyo., last year to call attention to their views.

The group’s concern about a dearth of diversity at the Fed has been echoed by former Minneapolis Fed chief Narayana Kocherlakota. He argued in a blog post last month the central bank has appeared to give short shrift to racial concerns in part because there have been almost no African-Americans in its policy-making ranks. He wrote that the concerns of racial minorities have been “underemphasized” at the Fed.

The last African-American to serve on the Fed board was Roger W. Ferguson Jr., who served as a governor between 1997 and 2006 and as vice chairman from 1999 to 2006. The first African-American to serve as a Fed governor was Andrew Brimmer, from 1966 to 1974.

The report showed particular concern about the directors on the regional Fed bank boards, which are drawn from the private sector. It said 83% are white, compared with around two-thirds of the total U.S. population.

“The diversity of regional board members is meant to inform the bank presidents, who in turn, participate in discussions and vote at the FOMC,” the report said. “However, the boards, the presidents, and the FOMC fail to represent their region’s racial diversity.”

The report also said its analysis found that representatives of banking and what it calls commercial interests have increased their share of regional Fed board seats in recent years. Representatives of community groups and labor unions account for fewer than 5% of the available board seats, according to the center.

Among the regional Fed bank boards’ most high-profile roles is selecting their bank presidents. Recent regulatory changes now bar directors from participating in that process if their firms are regulated by the bank.

The directors also provide information to bank officials about local economic conditions and give advice on running the banks.

This weekend we'll be covering events at the Local Progress National Convening and Center for Popular Democracy's People's Convention that are happening in Pittsburgh this weekend. More than 1,000 grassroots activists and 100 elected municipal officials will attend conference sessions and a rally in the city from July 7-9. Follow our live blog for coverage.

People's Convention addresses Immigrants rights

This weekend during a panel discussion on immigration at the Local Progress conference, “sanctuary cities” were front and center. In places that have been classified as sanctuary cities, local law enforcement is dissuaded and sometimes barred from providing information to U.S. Immigration and Customs Enforcement.

Sanctuary cities have been a red hot topic in Pennsylvania recently with Republican U.S. Senator Pat Toomey trying (and failing) to pass a bill that would cut off funding to sanctuary cities and Democratic U.S. Senate Candidate Katie McGinty telling the Mayor of Philadelphia that his sanctuary city bill needs altering.

Opponents of sanctuary cities believe they lead to undocumented immigrants, who are arrested for violent crimes or terroristic charges, avoiding deportation. But advocates say these policies protect undocumented immigrants, who are charged with minor crimes, from falling into the hands of ICE.

“This is about trust between the community and the police department,” said Philadelphia City Councilor Helen Gym, who spoke during the panel discussion as a proponent of Philadelphia's sanctuary policy. “The community is not served when they fear the police.” The lack of a sanctuary policy in Allegheny County enabled the prosecution and possible deportation of Martin Esquivel-Hernandez, who City Paper wrote about in a cover story in June. Esquivel-Hernandez, an undocumented immigrant from Mexico living in Pittsburgh, was cited for driving without a valid license by Mount Lebanon Police and paid his fine in late April. Less than a week later he was detained by ICE.

Lt. Duane Fisher, of the Mount Lebanon Police, says the township's general policy is to make contact with ICE if police “find someone who is unlicensed” and to see whether ICE has “any reason to see if [the suspect] is wanted.” ICE officials have not returned multiple calls requesting information about Esquivel-Hernandez.

Gym says stories like these can harm relationships between immigrant communities and local law enforcement. “We don’t want people to be afraid to call the police to report crimes like burglary, etc.,” said Gym. “It is not the responsibility of local police departments to enforce immigration laws, since they are federal laws.”

She also adds that immigrants have helped Philadelphia grow after 50 years of losing population. Gym says that while the native-born population in Philadelphia has remained steady or dropped over the years, the foreign-born population has grown. “The vibrancy of Philadelphia, the part that seems exciting, hast to do with immigrants feeling welcome,” Gym says.

Other elected officials at the panel from across the country—even ones that are in rust belt cities like Pittsburgh—agreed that attracting immigrants is important to a region's prosperity. Summit County, Ohio County Councilor Liz Walters said immigrants and refugees breathe new life into struggling communities. Summit County, which is just south of Cleveland, has a manufacturing past and has been losing population for decades.

Even in the face of population decline, Walters said it has not been easy to sway other local politicians to the benefits of attracting and maintaining foreign-born populations. “For some, it's easier to see differences and so it's easy to be afraid,” said Walters.

But Walters said Summit County is starting to see successes. Akron, the county seat, now holds ethnic market bus tours where long-time residents sit next to social service providers and get to sample Italian, Mexican and Southeast Asian goods. She says strategies like these don’t just show people can live together, they are good for a region’s economy: “Any city that is not thinking about a [diverse] and global-minded local economy, is going to fall behind.”

— Ryan Deto

9-11 a.m. Fri., July 8

Linda Sarsour, executive director of the Arab American Association of New York, spoke at Local Progress' national meeting about combating Islamophobia. - PHOTO BY ASHLEY MURRAY

Photo by Ashley Murray

Linda Sarsour, executive director of the Arab American Association of New York, spoke at Local Progress' national meeting about combating Islamophobia.

Linda Sarsour is the executive director at the Arab American Association of New York and the co-founder of Empower Change, a Muslim online organizing platform. She spoke at this morning’s Local Progress panel discussion entitled “Our Role in this Political Moment: How local officials can fight back against hate, xenophobia and Islamophobia.” City Paper’s Ashley Murray caught up with her after the discussion.

Tell me about some of the work you’ve done in New York.

My organization predominately works with immigrants from the Arab world and South Asia and has been doing immigrants-rights work — language access to services for immigrants, police reform based on accounts of unwarranted surveillance against Arab Americans and Muslim Americans. That work has really opened up doors for being part of broader social-justice movements in New York City that includes working on city-wide immigrant-rights legislation and police reform with black and Latino civil-rights groups. We’ve had a lot of wins in New York. We are one of the most welcoming immigrant cities in the country. We have language-access legislation where government agencies are mandated to [provide] language access. We have passed landmark civil-rights legislation [including] police-reform legislation, creat[ing] the first-ever independent oversight for the New York Police Department. Really it was the most directly impacted communities [who were] at the forefront of those fights. I have committed myself to intersectional organizing because people are intersectional. I mean Muslims are black, white, Latino, Asian, Arab, and we also understand that within all of our communities we’re so complex. So we’re working on multiple issues because we’re not one-issue communities.

One of the things you said on the panel today is that the same people who are promoting Islamophobia may also be against LGBTQ rights and promote deporting Latinos and separating them from their families. Can you talk about that intersection?

I like to look at things from a broader perspective, and because I'm an intersectional organizer, I get to see that the same legislators that are passing anti-LGBTQ laws are the ones passing anti-Sharia bills, which are basically limiting Muslims rights to practice Islam freely in this country. People who are unconditionally pro-police and anti-police reform [and] anti-refugee resettlement are mostly the same legislators around the country. Once we started understanding that, it really helped us build alliances so that when there is an anti -refugee legislation, different movements are showing up for others. When there is an anti-LGBTQ [bill], other communities are showing up. It’s been very powerful. We’ve been able to defeat a lot of anti-refugee legislation across the country. There have been hundreds of cities that have passed welcoming-immigrants resolutions. And I think many legislators are realizing opposition is not in opposition to one group. They are actually in opposition to multiple groups, many of whom are marginalized and minority communities.

Lastly, on the panel you talked about how “Daesh” uses Islamophobia as a tool. Can you talk about that? [Sarsour told the audience that she uses the Arabic acronym Daesh because the terrorist group does not like that name. Many English-speaking media outlets use the term “self-described Islamic State” or “ISIS”.]

I think Islamophobia is systemic targeting and discriminating against Muslims in America, and what it does is it isolates Muslim Americans from the larger American society. It puts people farther into the margins and what that does is, and especially when elected officials in particular are in the media spouting anti-Muslim rhetoric, it actually gives fuel to violent extremists on the other side of the world — and particularly watching Daesh create these social-media videos where they actually quote people like Trump. This feeds into the narrative that they are trying to propose that the West is at war with Islam and that you are not welcomed in your countries, you are a minority, you are at the margin. They use this very problematic rhetoric that is actually based on things people in our country have said. So I always tell people to be careful of what type of ammunition you’re giving to the violent extremists. Unity is the enemy of terrorism, and what Daesh does not want to see is people coming together saying, "We stand with our Muslim neighbors, we stand with our LGBT neighbors." They don’t want to see people working together. And I think we’ve done a very good job in some parts of the country, in places like New York City, where we said, "We’re not going to be divided. We’re not going to let Daesh divide us; we’re not going to let the right-wing divide us."

— Ashley Murray

6-8 p.m. Thu., July 7

Culver City, Calif., City Councilor Meghan Sahli-Wells spoke to a crowd of locally elected woman officials.

Culver City, Calif., City Councilor Meghan Sahli-Wells spoke to a crowd of locally elected woman officials.

Ana Maria Archila stood at the front of a small conference room and emotionally said, "All of you  represent what's possible. I need you." She told this to a small conference room of locally elected woman officials after talking about her 4-year-old daughter who told her mom that she could "be Michelle" but couldn't be president.

"She's only 4, but she already learned gender roles. That's why I need you," Archila said.

Nearly 40 women — including local city councilors, county supervisors and school-board members from as close as Wilkinsburg, Pa., to as far as Tacoma, Wash. — gathered for the Local Progress' Inagural Women's Caucus Gathering to kick off the weekend at the Westin Hotel in Downtown Pittsburgh. Local Progress, which has the tagline "The National Municipal Policy Network," is part of the Center for Public Democracy, also holding its People's Convention in town this weekend.

The purpose of the Local Progress national meeting is to "create a community to share best practices around policy and learn from campaign best practices," says Sarah Johnson, co-director of the organization. "We think local progress can play a role in supporting women."

Meghan Sahli-Wells, a city councilor from Culver City, Calif., said that although her city was founded 100 years ago, there have only been five women elected to local government.  "We can still count the number on one hand," she said, holding five fingers up to drive home the point.

Various participants shared concerns about obstacles for women wanting to run — like lack of a network to raise capital — and issues once in office — like needing a career mentor.

Sequanna Taylor, now a supervisor for the 2nd District of Milwaukee County, said, "I didn't have the money, but I couldn't let that be an issue. I was out in blizzards getting signatures." Taylor said when her county came under financial distress, she grew concerned about representation in her district and decided to run. She said the board had a reputation for being made up of "good old boys."

"I have to make sure they [District 2 residents] have a voice," Taylor said.

A collective, disappointed "wow" could be heard when political scientist Dana Brown, of the Pennsylvania Center for Women and Politics at Chatham University, told the room that 82 percent of the locally elected officials in Pa.'s 67 counties are male. Her organization is a bipartisan center that encourages women to run for office.

"Public policy is happening whether women are at the table or not," Brown said. "Somewhere right now there is a vote happening. ... We, in Pa., have a long way to go."

She shared research findings that show when women are at the table, they change agendas by bringing a new perspective; change procedures by changing content of discussions and enforcing transparency; and change policy outcomes because they use more collaborative and inclusive language in negotiations.

Two local politicians attended the discussion — Pittsburgh City Councilor Natalia Rudiak and Wilkinsburg Council Vice President Marita Garrett.

Rudiak said that when she was a young activist, "a man always had the megaphone [at protests]. I remember wondering if I'll ever have it." Now Rudiak, one of the youngest people ever elected to council, says "I'm doing everything I can locally to get women elected."

— Ashley Murray

By Rebecca Addison, Ryan Deto and Ashley Murray

Source

Clinton has been defending herself from accusations that she is too cozy with Wall Street since the primaries, when an obscure U.S. senator from Vermont built a movement in part by blasting her for collecting chunky speaking fees from Goldman Sachs Group Inc. (GS). Trump has carried on with that line of attack, telling an Iowa rally in late September, "if she ever got the chance, she'd put the Oval Office up for sale." So it may seem odd that Trump's campaign finance chair and apparent favorite for the Secretary of the Treasury, according to a Fox Business report on November 3rd, is second-generation Goldman Sachs partner Steve Mnuchin.

There is less clarity about who Clinton would nominate if she won, perhaps because she has to contend with skepticism of capitalism-as-usual among fans of Bernie Sanders and Elizabeth Warren, without veering too far to the left of the general electorate. Two names tend to pop up, however: Facebook Inc. (FB) COO and Lean In author Sheryl Sandberg, followed by Federal Reserve Board Governor Lael Brainard. Other possibilities include TIAA CEO and Alphabet Inc. (GOOGL, GOOG) board member Roger Ferguson.

Trump: Mnuchin

Steve Mnuchin may not seem to be the obvious choice to fashion economic policy for a populist, anti-establishment campaign like Trump's. Before taking over as the Republican's campaign finance chair in May, Mnuchin pursued a varied career as an investment banker, hedge fund manager, retail bank owner and film producer. (See also, Trump Announces New Economic Advisory Team.)

After graduating from Yale, where he roomed with Sears Holdings Corp.'s (SHLD) current CEO Edward Lampert, Mnuchin cut his teeth at Salomon Brothers. He joined Goldman Sachs, where his father was a partner, in 1985. According to a 2012 Bloomberg profile, Mnuchin was "front and center" when instruments such as collateralized debt obligations and credit default swaps were created. Fairly or unfairly, such exotic securities carry a whiff of the financial crisis, as does Goldman Sachs' mortgage department, which Mnuchin headed for a spell before becoming chief information officer in 1999.

He left Goldman Sachs in 2002 to work at his college roommate's hedge fund. The next year he started another fund with George Soros, and a year after that he formed Dune Capital with two other Goldman alums. This period marked the beginning of Mnuchin's Hollywood career, with Dune Capital's production wing funding dozens of films including Mad Max: Fury Road, American Sniper and Avatar.

Mnuchin's biggest financial opportunity came with the collapse of the subprime mortgage bubble. "In 2008 the world was a scary place," Mnuchin told Bloomberg in 2012. The market for mortgage-backed securities, with which he was intimately familiar, had collapsed, and no one seemed able to assign a value to assets such as IndyMac, a bank the FDIC had taken over. Mnuchin and a consortium of private equity investors he managed to woo over, including Soros, bought it on the cheap. The deal included a loss-sharing agreement with the FDIC. They renamed the bank OneWest and began foreclosing on borrowers, attracting criticism from campaigners who portrayed it as overly zealous and possibly driven by a profit incentive – born of the loss-sharing agreement – to foreclose rather than pursuing other options. (See also, Lessons Learned from the Banking Crisis.)

Mnuchin has donated to Clinton in the past, as has Trump. Speaking to Bloomberg in August, though, he was on message: "she's obviously raised a ton of money in speaking fees, in other things, from special interest groups. This campaign is focused on people who want to help rebuild the economy."

Clinton: Sandberg, Brainard or Ferguson

Clinton suggested at a town hall meeting in April that she plans to fill half of her cabinet with women. Most reports regarding her pick for Treasury secretary, a position that has never been filled by a woman, mentioned Facebook's Sheryl Sanderberg and the Fed's Lael Brainard. Another, less-frequently mentioned name is Roger Ferguson, who would be the first African-American to hold the job.

Sandberg

Sandberg has Treasury Department experience. Before becoming one of the most successful women in notoriously macho Silicon Valley, she served as chief of staff to Bill Clinton's Treasury Secretary Larry Summers. She received her BA and MBA from Harvard in the 1990s and spent a year at McKinsey & Co. She worked for Summers, who had been her professor at Harvard, from 1996 to 2001, which offered her the experience of dealing with the Asian financial crisis. She spent the next seven years as a vice-president of Google, then Mark Zuckerberg hired her away as Facebook's chief operating officer. Within two years she had turned the company profitable. In 2012 she became the first female member of Facebook's board. (See also, Who Is Driving Facebook's Management Team?)

Sandberg has also become an icon for some feminists for her 2013 book Lean In – and its attendant hashtag – which documents the barriers women face in the workplace while encouraging them to dispense with internalized barriers, fears and excuses that hold them back. Despite a generally enthusiastic reception, some critics have labeled the book as elitist: the opportunity to network at Davos may have made Sandberg's barrier-breaking easier. (See also, Sheryl Sandberg's Latest Speech Goes Viral.)

Brainard

Lael Brainard spent part of her childhood in communist East Germany and Poland with her diplomat father. She studied at Wesleyan and went on to get a masters and a doctorate in economics from Harvard. She taught at MIT's Sloan School of Management and worked at McKinsey before joining the Clinton administration as deputy director of the National Economic Council. She went to work at the Brookings Institution during the Bush administration, then served in Obama's Treasury as undersecretary for international affairs. At that time, that position – often described as the Treasury's top diplomat – was the highest Treasury post a woman had held. (See also, Fed's Brainard Urges Caution on Interest Rate Hike.)

Brainard has been a member of the Federal Reserve Board of Governors since June 2014, where she's attracted praise from progressives and deep suspicion from conservatives for appearing to depart from the central bank's technocratic, apolitical norms. She engaged with "Fed Up" activists protesting plans to tighten monetary policy at August's Jackson Hole meeting. (See also, Rising U.S. Labor Productivity Cements Fed Hike.)

Brainard also gave the maximum amount of $2,700 to Hillary Clinton's campaign. That decision earned furious condemnation from Republican members of the House Financial Services Committee during Fed chair Janet Yellen's September testimony, which came just two days after Trump accused the Fed of "doing political things" at the first presidential debate. Yellen defended Brainard's donation, saying she had not violated the Hatch Act, which prohibits federal employees in the executive branch from engaging in certain political activities.

Ferguson

Roger Ferguson earned a BA, JD and Ph. D in economics from Harvard then worked as an attorney in New York from 1981 to 1984. He spent the following 13 years at McKinsey, then joined the Fed Board of Governors in 1997. He became vice chair two years later, and rumors began to swirl in 2005 that he would be the next chair. Bush nominated Ben Bernanke instead, and Ferguson resigned shortly after Bernanke's term began the following February.

In 2008 he became president and CEO of Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF, since shortened to TIAA). He has been a board member of Alphabet since June 2016.

By David Floyd

Source

Against a backdrop of strengthening growth but chronically low inflation, Federal Reserve Chair Janet Yellen and other central bankers are taking their measure of the global economy at their annual conference in the shadow of Wyoming's Grand Teton Mountains.

With the prospect of new leadership at the Fed within months, investors will be listening for any hint of shifting interest rate plans from the policymakers. The most watched events will come Friday, when Yellen and Mario Draghi, head of the European Central Bank, will each address the conference.

Read the full article here.