Campaign News

Two years ago this week, the nonprofit Center for Popular Democracy and allied groups launched the Fed Up campaign, aimed at making the Federal Reserve more accountable to workers and communities of color. They converged then on the Jackson Lake Lodge in Wyoming, where Fed officials decamp every year to discuss policy and hobnob with the economic elite.

How much political headway has the campaign made since then? This year, Fed Up activists were essentially put on the schedule for senior Federal Reserve officials, with a major meeting at the Jackson Hole summit.

The group met Thursday, the first day of the summit, with eight of the 12 presidents of the regional Federal Reserve banks and two members of the Federal Reserve Board of Governors.

Fed Up activists have met individually with the governors and regional bank presidents before; they spoke with some Fed officials less formally at the past two Jackson Hole gatherings. This is the first time, however, that their delegation of some 120 rank-and-file activists had met with so many of the central bank’s decision-makers in one place.

“It is kind of like a mini-FOMC,” said Fed Up campaign manager Jordan Haedtler prior to the event, likening it to a meeting of the Federal Open Market Committee, the Fed’s policymaking body.

The progressive campaign is calling for the central bank to wait for the economic recovery to reach more broadly across America before raising its benchmark interest rate again, a move that slows the pace of economic growth to head off price inflation.

It has also criticized the Fed for the lack of racial, gender and professional background diversity among its senior officials, arguing that only a central bank that looks like America can craft policy in the best interests of all citizens.

The Fed officials at the meeting were Esther George, president of the Federal Reserve Bank of Kansas City, which hosts the annual symposium; New York Fed president William Dudley; Dallas Fed president Robert Kaplan; Minneapolis Fed president Neel Kashkari; Cleveland Fed president Loretta Mester; Boston Fed president Eric Rosengren; San Francisco Fed president John Williams; Richmond Fed president Jeffrey Lacker, and Fed governors Stanley Fischer and Lael Brainard.

“They were really impressed with how well prepared we were,” said Haedtler after the meeting. “They were heartened by the discussion.”

“We’ll see how things go in September,” he added, referring to the next opportunity for an interest rate hike.

Bill Medley, a spokesman for the Kansas City Fed, also gave positive feedback about the meeting.

“It was a productive dialogue, as it always is, and we look forward to continuing the conversation,” Medley said.

Fed Up has had a banner year so far. Democratic presidential nominee Hillary Clinton embraced the broad contours of its platform in May after weeks of private discussion with group representatives.

“Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue,” a Clinton spokesman said at the time.

But Clinton stopped short of signing on to a bolder reform proposal that Fed Up rolled out in April, which would turn the central bank system into an entirely public institution. The Federal Reserve Board of Governors is already a federal agency, whose top officials are nominated by the president and confirmed by the Senate. But the 12 regional banks it supervises are owned by the private financial institutions they serve. (Fed Up released a more detailed version of its idea on Monday.)

The private nature of these banks is a major reason why they are run overwhelmingly by white men with backgrounds in finance, Fed Up argues. There has never been a black or Latino president of one of the regional banks, the group notes in its reform proposal, and one-third of the current bank heads are alumni of Wall Street power player Goldman Sachs.

Fed Up’s moment at this year’s Jackson Hole symposium was not without its hiccups.

Earlier this month, Fed Up were informed that the Jackson Lake Lodge had canceled over a dozen of its room reservations. The hotel said a “computer glitch” had led to the overbooking of 18 rooms. But the fact that 13 of those rooms were booked by Fed Up raised concerns that they were being targeted.

Although the activists found lodging at a nearby resort, Fed Up filed a complaint with the U.S. Department of Justice, and members of Congress sympathetic to their cause sent Fed Chair Janet Yellen a letter asking for an explanation.

In an apparent gesture of detente, George, the Kansas City Fed president, offered Fed Up the big meeting, and the campaign withdrew its objections to the lodging snafu.

Fed Up agreed also to limit its presence in the lodge’s halls during a scheduled cocktail hour. In the past, activists have clustered inside the hotel to confront Fed officials in person. The group held a press conference-cum-rally outside the lodge before Thursday’s meeting. It also plans to run teach-in seminars and to canvass the city’s low-income neighborhoods to spread the word about Fed reform.

But Haedtler, Fed Up’s campaign manager, wanted to focus on Thursday’s meeting. It is evidence, he said, that his fledgling movement’s priorities have made it into the mainstream.

“We have clearly reshaped the discourse,” Haedtler said.

By Daniel Marans

Source

Latin Post - June 30, 2014, by Michael Oleaga - New York Assemblyman Francisco Moya, author of the state's DREAM Act, told Latin Post, "The New York City Council's decision to create the nation's first public defender system for immigrants facing deportation is a bold move for justice and I am proud to say that I was an early supporter of this initiative on the state level. One of my proudest accomplishments this year is that I was able to secure funds in the state budget for the New York Immigrant Family Unity Project."

"Facing a judge without counsel provides an unreasonable barrier to justice," Moya added. "If you wind up in immigration court and must defend yourself against trained attorneys, it's almost impossible to avoid deportation. Providing counsel for those facing deportation is about justice and family unity. No one should have to lose a family member to deportation just because they couldn't afford an attorney. I applaud the efforts of the New York City Council and look forward to taking up my bill to expand this program statewide again next year."

New York City became the first jurisdiction in the United States to provide free legal counsel to detained undocumented immigrants facing deportation. New York City's Council passed the $4.9 billion program known as the New York Immigrant Family Unity Project (NYIFUP) after a "successful" yearlong trial.

The NYIFUP's funding from the City Council grants legal representation for nearly 1,380 detained immigrants in the city.

The program is also the result of a five-year study by the Center for Popular Democracy, the Immigrant Justice Clinic of Cardozo Law School, Make the Road New York and the Northern Manhattan Coalition for Immigrant Rights (NMCIR). According to the Vera Institute of Justice, more than 7,000 U.S. citizen children in New York City lost a parent to deportation between 2005 and 2010. Sixty-seven percent of detained immigrants in the city continue their deportation hearings without legal counsel, and only 3 percent find success. Vera noted immigrants with legal representation are 10 times more likely to find a successful outcome in immigration court.

"In addition to the financial hardship caused by the loss of a primary breadwinner, these children have been shown to suffer significant emotional and psychological effects," said Vera, which administered the initial one-year-pilot program and sought to increase "court effectiveness and decrease detention times" and would save taxpayer dollars.

"In time, NYIFUP would become a model for other jurisdictions that value their immigrants and counterbalance overtly hostile immigration policies enacted in states like Arizona and Alabama," NMCIR stated.  "New York State has an opportunity to lead by making resources available to address a critically important unmet need and to keep New York families together."

NMCIR Executive Director Angela Fernandez acknowledged deportation proceedings do not require the government to provide lawyers since it is considered a "civil" matter rather than criminal.

"However, to the immigrants who are held in county jails, shackled and forced to litigate in one of our most complex arenas of law against trained government attorneys, the civil designation is cold comfort," Fernandez said.

"New York City's investment in the New York Immigrant Family Unity Project will not only help those who receive legal representation in decisions that will profoundly affect their lives, but it will also send a clear message that the city values and protects all families," Make the Road New York's Immigration Project's Cesar Palomeque said in a statement.

"The City Council should be congratulated for its leadership in ensuring that no detained New Yorker will be deported without an opportunity to show that she or he is entitled to remain in the country," Vera Director of the Center on Immigration and Justice Oren Root said.

Credit for the NYIFUP has been given to City Council Speaker Melissa Mark-Viverito and Councilmembers Carlos Menchaca, Julissa Ferreras and Daniel Dromm.

On a federal level, House Democrats have proposed the Vulnerable Immigrant Voice Act (VIVA) (H.R. 4936) legislation that would provide legal representation to unaccompanied minors and mentally disabled individuals during immigration proceedings. According to the Department of Homeland Security (DHS), nearly 90,000 children will immigrate to the U.S. without an adult by the end of 2014.

"Currently, thousands of these children are stuck in a legal limbo as they seek a brighter future in the United States and most will not have legal representation," National Immigration Forum's Executive Director Ali Noorani told Latin Post.

The National Immigrant Justice Center's Executive Director Mary Meg McCarthy, Senate and House immigration reforms such as S. 744 and H.R. 15 provides legal representation to undocumented people for immigration court, but both bills have stalled in Congress.

Source

Around this time last year, as another white male took the reins at the Federal Reserve Bank of Philadelphia, the Fed’s archaic and opaque system of choosing its regional presidents started to come under fire. At first the criticism was over the way the system appeared to favor insiders. Patrick Harker, at the time the new Philadelphia Fed President, had sat on the regional Fed board that was tasked with filling that position. Later that summer the Dallas Fed would name Robert Kaplan, who is also white, as its president despite the fact that he was a director at the executive search firm that that regional Fed board hired to find candidates. When the Minneapolis Fed named Neel Kashkari its president later in 2015, groups like the Fed Up Coalition pointed out that while he was the only non-white regional president, he, like Harker and Kaplan, had former ties to Goldman Sachs.

Since these presidents have rotating votes on U.S. interest rate policy, many saw the selections as a critical failure to reflect the country’s diversity of gender, race and background. As it stands, 11 of the 12 regional Fed presidents are white, 10 of them are male, and none are black or Latino. Fed Up, a network of community organizations and labor unions calling for changes to the central bank, also points out that there has never been a black regional president in the Fed’s 102-year history.

To be sure, the central bank was set up in 1913 in this decentralized way to check the power of the Washington-based Fed Board, whose seven governors are nominated by the U.S. President and confirmed by the Senate in public hearings and votes. The Fed presidents scattered around the country, meanwhile, are quietly chosen by their regional directors (usually corporate, industry and civic heads) and then, again with little or no public input or transparency, approved by the Fed governors after a series of private interviews with them in Washington. All 12 presidents had their terms extended earlier this year.

So the stage was set on Tuesday for Senator Elizabeth Warren, the Massachusetts Democrat who some see as a potential running mate for U.S. presidential candidate Hillary Clinton, to make a point about diversity at the Fed while making things rather uncomfortable for Fed Chair Janet Yellen, who was testifying before the Senate Banking Committee – and who, it may be noted, is the first woman to lead the central bank:

Warren: “Does the lack of diversity among the regional Fed Presidents concern you?”

Yellen: “Yes, and I believe it is important to have a diverse group of policymakers who can bring different perspectives to bear. As you know, it’s the responsibility of the regional banks’ Class B and C directors to conduct a search and to identify candidates. The (Fed) Board reviews those candidates and we insist that the search be national and that every attempt be made to identify a diverse pool of candidates…”

Warren: “The Fed Board recently re-appointed each and every one of these presidents without any public debate or any public discussion about it. So the question I have is, if you’re concerned about this diversity issue, why didn’t you take (any) of these opportunities to say, ‘Enough is enough, let’s go back and see if we can find qualified regional Fed presidents who also contribute to the overall diversity of the Fed’s leadership’?”

Yellen: “We did undertake a thorough review of the re-appointments of the performances of the presidents. The Board of Governors has oversight of the reserve banks, there are annual meetings between the Board’s bank affairs committee and the leadership of those banks to review the performance of the presidents, and there were thorough reviews of…”

Warren: “But you’re telling me diversity is important and yet you signed off on all these folks without any public discussion about it. I appreciate your commitment to diversity and I have no doubt about it. I don’t question it. It just shows me that the selection process for regional Fed presidents is broken because the current process has not allowed you and the rest of the Board to address the persistent lack of diversity among the regional Fed presidents. I think that Congress should take a hard look at reforming the regional Fed selection process so that we can all benefit from a Fed leadership that reflects a broader array of both backgrounds and interests.”

As it happens, Clinton said last month that she, too, supports an ongoing push by Warren and other liberal members of Congress to exclude bankers from the regional Fed boards and to make the central bank more diverse.

By Jonathan Spicer

Source

FOR IMMEDIATE RELEASE: March 2, 2015

Contact:Ricardo A. Ramírez, rramirez@populardemocracy.org, 202-464-7376

Statement from the Fed Up coalition on Philadelphia Fed’s Announcement of a New President

In response to this morning’s announcement of a new president for the Philadelphia Federal Reserve, Kendra Brooks of Action United in Philadelphia put out the following statement today on behalf of the Fed Up coalition:

“As the nation’s central bank, the Federal Reserve System’s governance and decision-making processes should reflect the values of transparency and public accountability. The process that was used to select Patrick Harker as the new President of the Federal Reserve Bank of Philadelphia failed to do that. Despite repeated requests from community, consumer, labor, and academic organizations and public officials within the region, the Philadelphia Fed refused to create any mechanisms for engagement with the public. Instead, the process was entirely opaque: nobody outside of the Federal Reserve knew who the candidates were or what the criteria was for selection. This process did a disservice to the Federal Reserve System and the people of the Philadelphia region.

“We congratulate President Harker on his appointment and look forward to working with him to build a strong economy for Philadelphia and the region. For too many families within the Third District, the economy still isn’t working: the so-called recovery has featured stagnant wages and not enough good jobs. We are eager to partner with President Harker to change that reality, and to build a Federal Reserve Bank of Philadelphia that is accessible to public input and responsive to the public’s needs.”

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“Fed Up” is a national coalition of community-based organizations, unions, and policy advocates calling for the Federal Reserve to adopt policies that create a full employment economy with rising wages and good jobs for everyone and for a reformed Federal Reserve that is transparent and accountable to the public. The Coalition recently met with Fed Chair Janet Yellen and three Fed Governors to discuss its priorities.