Fed says rate hike next month hinges on market volatility
Some top policymakers, including Fed Vice Chairman Stanley Fischer, said recent volatility in global markets could quickly ease and possibly pave the way for the U.S. rate hike, for which...
Some top policymakers, including Fed Vice Chairman Stanley Fischer, said recent volatility in global markets could quickly ease and possibly pave the way for the U.S. rate hike, for which investors, governments and central banks around the world are bracing.
With a key policy meeting set for Sept. 16-17, at least five Fed officials spoke publicly in what amounted to a jockeying for position on whether increasing the Fed's benchmark overnight lending rate was too risky amid an economic slowdown in China, a rising U.S. dollar .DXY and falling commodity prices XAU= CMCU3.
"It's early to tell," Fischer told CNBC on the sidelines of the annual central banking conference in Jackson Hole, Wyoming. "We're still watching how it unfolds." He, along with other Fed officials, acknowledged that the global equities sell-off that began last week would influence the timing of a rate hike, which until only a couple of weeks ago seemed increasingly likely to occur in September.
Concerns about China's economy have whipsawed markets, including Wall Street, even while U.S. economic data has been robust. U.S. stock indexes ended largely unchanged, capping a week that included both the market's worst day in four years and biggest two-day gain since the 2007-2009 financial crisis.
"I think they could settle fairly quickly," said Fischer, a close ally of Fed Chair Janet Yellen.
St. Louis Fed President James Bullard told Reuters he still favored hiking rates next month, though he added that his colleagues would be hesitant to do so if global markets continued to be volatile in mid-September.
The Fed's policy committee "does not like to move right in the middle of a global financial storm," Bullard, a Fed hawk, said in an interview. "So one of the advantages we have is that this storm is occurring now and, at least as of now, we think it will be settled down" by the September meeting.
The comments suggest the next two and a half weeks will be critical for the Fed as well as for global markets. A U.S. rate hike is expected to hit emerging market equities and currencies particularly hard, adding to the sell-offs already seen.
Source: Reuters
Arpaio Meets Virtually No DOJ Criteria for a Pardon
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of new norms if he announces a pardon Tuesday night, as he has said he might,...
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of new norms if he announces a pardon Tuesday night, as he has said he might, for former Arizona Sheriff Joe Arpaio. Legal analysts and Dept. of Justice guidelines reviewed by TYT suggest that granting a presidential pardon to the controversial former sheriff would go against virtually every recommended criteria the DOJ has for appropriate pardon candidates.
Read the full article here.
Fed chairman defends interest rate hikes as Trump’s attacks show no sign of working
Fed chairman defends interest rate hikes as Trump’s attacks show no sign of working
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech. Much like Trump, they say raising rates again will harm working people’s...
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech. Much like Trump, they say raising rates again will harm working people’s chances of getting jobs and better pay. The protesters wore green T-shirts reading “The Fed wants more of us unemployed.
Read the full article here.
Coalition Calls for Racial Equality in Kansas City Economy
KSHB - March 5, 2014 - Following a Department of Justice report showing the Ferguson Police Department unfairly targeted African-Americans, a Kansas City coalition says there are racial...
KSHB - March 5, 2014 - Following a Department of Justice report showing the Ferguson Police Department unfairly targeted African-Americans, a Kansas City coalition says there are racial inequalities right here.
They say a recent economic report shows twice as many African-Americans in Kansas and Missouri are unemployed than white residents and that wages are too low to support a family.
"Our purpose here today is to call for a moral economy where wages actually provide hope for workers and their families,” Stan Runnels, a priest and CCO member, said.
The group is asking policy makers for a change.
Source
Fed Up Condemns Trump Nomination to Federal Reserve
07.10.17
NEW YORK – In...
07.10.17
NEW YORK – In response to the White House’s nomination of Randal Quarles to the Federal Reserve as Vice Chair for Supervision, Jordan Haedtler, Campaign Manager for the Fed Up coalition, released the following statement:
“Throughout his career, self-described ‘Wall Street lawyer' Randal Quarles has looked out for his banker clients at the expense of America’s hard-working families.
After the financial crisis took a devastating toll on our country, Daniel Tarullo and the Federal Reserve Board of Governors implemented regulations to protect consumers from Wall Street excesses and facilitated job recovery by keeping interest rates low. Quarles stood against crucial decisions like these that helped working families, and he was proven wrong.
Quarles is on record opposing the Volcker Rule, which is meant to prevent banks from gambling with depositors’ money. During the Bush administration, Quarles negotiated trade agreements that blocked countries from regulating derivatives and other instruments that caused the crash. And after returning to the private sector, Quarles held private equity up as a solution to avoid government bailouts. He then took advantage of relaxed restrictions on private equity ownership to purchase a failing bank, and had the FDIC pay 80% of that bank’s losses.
We are also very concerned about Quarles’ monetary policy views. He enthusiastically supports the adoption of a Taylor Rule by the Fed, which would deprioritize full employment and put monetary policy decisions on autopilot. If Quarles had his way and the Fed strictly followed a Taylor Rule over the past five years, economists estimate that 2.5 million fewer jobs would have been created.
Trump claims that his highest priority is jobs, but Quarles’ regulatory and monetary record show that he would destroy jobs, not create them.We urge the Senate to press Quarles on all of these troubling positions, and to oppose his confirmation.”
### www.thepeoplesfed.org
Fed Up is a coalition of community organizations, labor unions, and policy experts across the country calling on the Federal Reserve to reform its governance and adopt policies that build a strong economy for the American public. By keeping interest rates low and prioritizing genuine full employment, the Fed gives the economy a fair chance to recover and allows wages to grow across all communities.
Contact: Shawn Sebastian, Fed Up co-director, ssebastian@populardemocracy.org, 515.451.8773
Clinton Wants Bankers Off Regional Fed Boards
Democratic presidential candidate Hillary Clinton joined the fray Thursday in the debate over how the nation’s central bank operates, saying banking industry insiders need to be removed from the...
Democratic presidential candidate Hillary Clinton joined the fray Thursday in the debate over how the nation’s central bank operates, saying banking industry insiders need to be removed from the Federal Reserve System.
Mrs. Clinton’s campaign said, if elected, she would appoint officials who will carry out “unwavering oversight” of the financial sector and “defend” both sides of the central bank’s inflation and employment mandates. The campaign also said “commonsense reforms—like getting bankers off the boards of regional Federal Reserve banks—are long overdue.”
Mrs. Clinton’s comments on central bank changes appeared to be her first on the topic in a campaign season where the Fed has intermittently been an issue, albeit mostly on the Republican side. Mrs. Clinton’s views emerged on a day in which dozens of Democratic congressional members, led by Sen. Elizabeth Warren of Massachusetts and Rep. John Conyers Jr. of Michigan, criticized the central bank for a leadership largely made up of white males with business and finance backgrounds.
While the Fed is led by its first-ever woman chief, all of its governors are white and three of the five are men. Of the 12 regional bank presidents, none are black and 10 are men. The last African-American to serve in a key leadership role left in 2006.
The letter to Ms. Yellen, referencing a recent study by the left-leaning Center for Popular Democracy’s Fed Up Coalition, also flagged a lack of diversity among the boards of directors that oversee the regional Fed banks. The letter said a Fed that doesn’t look like the nation it works for will struggle to make policy that benefits an increasingly diverse nation. Regional Fed board members are drawn from the private sector to watch over institutions that are quasi-private. By law, the boards are supposed to represent their broader communities with three classes of directors reserved for differing interests, including the financial sector, in a process set out by a complicated set of rules. These boards oversee regional Fed bank operations, provide local economic insights and help select new bank presidents.
But the presence of bankers on the boards, representing firms regulated by the Fed, has been a sore spot for Fed critics. Over the years, the New York Fed faced notable controversies on this front.
Recent legal changes have removed financial-market participants from the process of selecting new bank presidents. Also, the Fed’s regulatory operations are managed in Washington even as they operate out of regional banks, and are insulated from the influence of the regional boards. Most regional Fed boards are spoken of in glowing terms by their respective bank presidents.
Financial-market professionals are well represented among Fed leaders. Most top central bankers are either economists by training or former bankers. The leaders of the New York, Minneapolis, Dallas and Philadelphia Fed banks all have worked in some capacity for investment bank Goldman Sachs. Current Fed Vice Chairman Stanley Fischer was vice chairman of Citigroup from 2002 to 2005.
Mrs. Clinton’s desire to remove financial-sector leaders from the regional Fed boards would mark a historic change for a central bank that was founded on the mission of promoting financial stability, and whose monetary policy actions work through private financial-market channels to affect the performance of the broader economy.
In response to the congressional letter, the Fed said in a statement that when it comes to the members of the regional boards, “by law, we consider the interests of agriculture, commerce, industry, services, labor, and consumers. We also are aiming to increase ethnic and gender diversity.“ It also said there has been a rise in both racial and gender diversity on the regional Fed boards, with 46% of all directors now meeting the label of “diverse.”
A recent overhaul proposal by former top Fed staffer Andrew Levin, now a professor at Dartmouth College, called for the regional Fed banks to be made fully public, ending their private ownership structure operating within the Fed board, which is explicitly part of the government. Mr. Levin also called for directors representing firms regulated by the central bank to be removed.
By MICHAEL S. DERBY
Source
Detener los préstamos de día de pago es apenas el inicio
En los últimos años, se han incrementado las críticas contra los préstamos de día de pago por explotar a los prestatarios de bajos ingresos y atraparlos en un ciclo de endeudamiento. El problema...
En los últimos años, se han incrementado las críticas contra los préstamos de día de pago por explotar a los prestatarios de bajos ingresos y atraparlos en un ciclo de endeudamiento. El problema ha alcanzado tal magnitud, que este verano, la Oficina de Protección Financiera del Consumidor (Consumer Financial Protection Bureau o CFPB) propuso nuevas normas para acabar con las prácticas más abusivas en este sector.
Sin embargo, los prestamistas de día de pago no son los únicos que lucran con las dificultades de las comunidades de bajos ingresos al otorgarles préstamos engañosos que a menudo hacen que la gente termine con deudas abrumadoras. De hecho, esas prácticas orientadas a grupos de bajos ingresos se han vuelto comunes en muchos sectores económicos, desde préstamos hipotecarios hasta financiamiento para estudios universitarios.
Durante décadas, prácticas discriminatorias en ciertos vecindarios les negaron a las personas de color acceso a préstamos hipotecarios, cuentas de banco y otros servicios importantes. Hoy en día, se hace lo mismo con esquemas engañosos de préstamo que les niegan a mujeres negras y latinas la oportunidad de una vida mejor.
Un informe reciente subraya el impacto que dichas prácticas han tenido en las mujeres de color. Entre otros datos alarmantes, el informe indica que 6 de cada 10 clientes de préstamos de día de pago son mujeres, que la probabilidad de que las mujeres de raza negra reciban un préstamo con tasa no preferencial es 256% más alta que la de hombres blancos de las mismas características y que las mujeres de color terminan pagando deudas estudiantiles durante mucho más tiempo que los hombres. El estudio, encargado por la Alliance of Californians for Community Empowerment, New Jersey Communities United e Isaiah, un grupo religioso en Minnesota, también prueba que las prácticas agresivas en préstamos, desde aquellos contra el cheque de pago hasta hipotecas con tasas altas, han aumentado considerablemente en años recientes. Muchos estudios han demostrado que se manipula a prestatarios con una buena historia crediticia, particularmente mujeres negras y latinas, para que saquen préstamos con intereses altos incluso cuando reúnen los requisitos para tasas más bajas.
Las mujeres de color son vulnerables a prestamistas de dudosa reputación debido a que el racismo y sexismo del sistema de por sí pone a muchas mujeres en una posición económica precaria. Cada vez más, se ha empujado a las mujeres a aceptar trabajos con poco control y paga. En la fuerza laboral con sueldos bajos predomina la mujer, y la brecha salarial entre los sexos afecta mucho más a las mujeres de color. En el año 2014, las mujeres de raza negra ganaban 63% de los ingresos de hombres blancos, y las latinas, 54%. Muchas mujeres de color, estancadas en empleos con poca paga, horarios imprevisibles y pocas oportunidades de superarse, se ven forzadas a sacar préstamos simplemente para subsistir o tratar de mejorar su desesperada situación.
Durante demasiado tiempo, se ha permitido que proliferen los préstamos usurarios y otras prácticas empresariales que les niegan oportunidades a comunidades y explotan a los más vulnerables en términos económicos. El mes pasado, la Consumer Financial Protection Bureau comenzó a tomar medidas contra los préstamos de día de pago o garantizados con títulos de propiedad de autos, pero es necesario hacer más. Las entidades normativas deben asegurarse de que todos los préstamos tomen en cuenta la capacidad del prestatario de pagar la deuda y de que los prestamistas no vayan en pos de los menos protegidos desproporcionadamente y traten de lucrar con ellos.
Las normas para préstamos de día de pago del mes pasado muestran claramente un ímpetu en combatir los préstamos cada vez más abusivos de los banqueros. Estas normas son un paso en la dirección correcta, pero no van suficientemente lejos. Estamos avanzando, pero queda mucho por hacer para asegurar que no se explote a las mujeres negras y latinas con esta versión de discriminación del siglo XXI.
Por Marbre Stahly-Butts
Source
New York immigration activists criticize Schumer for deal to reopen government
New York immigration activists criticize Schumer for deal to reopen government
Before 81 senators, including 33 Democrats, voted on Monday to reopen the federal government, U.S. Senate Minority Leader Charles Schumer blamed President Donald Trump in a speech on the Senate...
Before 81 senators, including 33 Democrats, voted on Monday to reopen the federal government, U.S. Senate Minority Leader Charles Schumer blamed President Donald Trump in a speech on the Senate floor for his refusal to compromise on an immigration deal.
For many liberals in his home state, however, Schumer is to blame for being too willing to compromise, since he agreed to reopen the government without a permanent solution for recipients of the Deferred Action for Childhood Arrivals program.
Read the full article here.
Fed Up Applauds Cautious Approach to Rate Hikes This Year
02/05/2016
Statement & Booking Opportunity: Ady Barkan, Director of the Fed Up campaign, released the following statement in...
02/05/2016
Statement & Booking Opportunity: Ady Barkan, Director of the Fed Up campaign, released the following statement in response to today’s Jobs Report:
“While January’s job data shows a moderately good start to the new year, fears that global turmoil will roil the U.S. economy are giving Fed officials pause about raising interest rates. Earlier this week, San Francisco Fed President John Williams and Dallas Fed President Robert Kaplan both suggested that recent foreign stock market instability is influencing the trajectory of projected interest rate increases by the Fed this year. Kaplan explained that stock market turmoil coupled with low commodity prices gives the Fed good reasons to be patient and take more time to assess the impact on the U.S. economy. The Federal Reserve intentionally slowed down the economy in December, ignoring the voices of working people around the country. In January, we learned that the economy barely grew at all in late 2015. And as international markets tumbled, the Fed began to walk back its excessive optimism. It’s good that Fed officials are now taking a cautious approach to rate hikes. They need to keep their eyes on the fundamentals, and prioritize higher labor force participation, higher wages, and lower racial disparities in the labor market.”
# # #
www.whatrecovery.com
Fed Up is a coalition of community organizations and labor unions across the country, campaigning for the Federal Reserve to adopt pro-worker policies for the rest of us. The Fed can keep interest rates low, give the economy a fair chance to recover, and prioritize full employment and rising wages.
Media Contact: Anita Jain, ajain@populardemocracy.org, 347-636-9761
Sofie Tholl, stholl@populardemocracy.org, 646-509-5558
New York City Schools' Discriminatory and Damaging School-to-Prison Pipeline
New York City Schools' Discriminatory and Damaging School-to-Prison Pipeline
New York City schools feed young black and Latino youth into a school-to-prison pipeline by leveling criminal punishments on students for small infractions and normal youthful behavior.
...
New York City schools feed young black and Latino youth into a school-to-prison pipeline by leveling criminal punishments on students for small infractions and normal youthful behavior.
Read the full article here.
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