Yellen nudges up traders' view on year-end United States rate hike
Yellen nudges up traders' view on year-end United States rate hike
Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a...
Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a solid job market and an improved outlook for the US economy and inflation.
At a gathering of central bankers from round the world in Jackson Hole, Wyoming, Yellen said improvements in the USA labor market and expectations for moderate economic growth have boosted the case for a rate rise, supporting what the rate futures market has been pricing in for some time. The gains were all but erased after Fed Vice Chairman Stanley Fischer said her remarks leave open the possibility of boosting rates in September.
The economy is "nearing" the Fed's goals of full employment and stable prices, share said.
With an interest rate hike unlikely in the immediate future, the dollar is struggling to gain traction.
Still Yellen declined to hint at whether the Fed might raise rates at its next policy meeting, September 20-21, or at its subsequent meetings in early November and mid-December.
The head of America's central bank said the case for an interest rate hike had strengthened but stopped short of indicating any timetable for a move.
"Yellen's speech at Jackson Hole today didn't necessarily offer much in the way of surprises", said OANDA senior market analyst Craig Erlam.
"New policy tools, which helped the Federal Reserve respond to the financial crisis and Great Recession, are likely to remain useful in dealing with future downturns", Yellen said. Although setting a hawkish tone and perhaps trying to sound balanced, Yellen did issue a few cautionary words, but for the most part, she indicated that more rate hikes were on the horizon.
Although US government data earlier on Friday showed the economy growing only sluggishly in the second quarter, Yellen said a lot of new jobs were being created and economic growth would likely continue at a moderate pace.
Yellen's words returned a measure of clarity on the intentions of U.S. monetary policymakers, who have been publicly at odds in recent months over the need to raise rates in the near-term. "On balance, it strengthened the case for a December move", said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.
Prices for fed funds futures implied investors saw about even odds that the Fed will raise rates in December, largely unchanged from before Yellen's remarks.
The dollar eased to 100.47 yen from 100.55 yen Thursday in NY, while the euro nudged up to US$1.1291 from US$1.1281.
In a meeting, members of the groups Fed Up and the Center for Popular Democracy told Fed policymakers that the assessment that the USA was approaching full employment did not reflect life for many blacks and Latinos looking for work. The dollar's 5 percent loss this year reflects a dimming outlook for the US central bank to reduce stimulus and diverge from unprecedented easing in Europe and Asia.
In afternoon trading, the dollar index, which measures the greenback versus six major currencies, rose 0.8 percent at 95.563.
By Adam Cater
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New Report: Big Banks Require Tellers to Use Predatory Practices
Bill Moyers & Company - April 9, 2015, by Katie Rose Quandt - Front-line workers at our nation’s big banks —...
Bill Moyers & Company - April 9, 2015, by Katie Rose Quandt - Front-line workers at our nation’s big banks — tellers, loan interviewers and customer service representatives — are required by their employers to exploit customers, according to a revealing report out today from the Center for Popular Democracy (CPD). Big banks have internal systems of penalties and rewards that entice employees to push subprime loans and credit cards on customers who would be better off without them.
CPD’s report outlines several illegal predatory practices big banks have been caught employing, usually via their front-line workers:
Blatantly discriminatory lending: In 2011 and 2012, Bank of America and Wells Fargo paid out settlements for charging higher rates and fees to tens of thousands of African American and Hispanic borrowers than to similarly qualified white customers. Minority customers were also more likely to be steered into (more expensive, riskier) subprime mortgages.
Manipulating payment processing to maximize overdraft charges: When a savings account balance drops too low, the bank charges a hefty overdraft fee on each subsequent purchase. Both Bank of America and US Bank paid settlements for intentionally processing customers’ largest debit card payments first, regardless of chronological order, in order to hit $0 faster and maximize overdraft fees. US Bank was also accused of allowing debit card purchases on zero-balance accounts to go through (and incur overdraft fees), instead of denying the charges upfront.
Forcing sale of unneeded products: Wells Fargo, JP Morgan Chase and Citigroup were accused of forcing customers to purchase overpriced property insurance.
Manipulative sales quotas: Lawsuits show Wells Fargo and Bank of America created incentive programs for employees with the interests of the company — not the customer — in mind. Wells Fargo’s sales quotas encouraged bank workers to steer prime-eligible customers to subprime loans, while falsifying other clients’ income information without their knowledge. Bank of America’s “Hustle” program rewarded quantity over quality, encouraging workers to skip processes and checks intended to protect the borrower.
Instead of cutting back on the risky, unethical practices that led to the Great Recession, the CPD report asserts that big banks have not learned from their mistakes. Bank workers report higher levels of sales pressure in 2013 than in 2008, and most do not have the job security or seniority to simply refuse to hawk credit cards or steer customers into risky financial situations. While the financial sector is turning near-record profits, the average bank teller made just $12.25 an hour in 2013 (a real-dollar decrease from 2007), causing 31 percent of tellers’ families to rely on public assistance. What’s more, 85 percent of these underpaid front-line bank employees are women, and one-third are people of color. Most are in no position to risk losing their job or having their pay docked for stepping out of line.
Several anonymous big bank employees went into detail about how their employers incentivize sales:
An HSBC employee reported that when workers fell short of sales goals, the difference was taken out of their paychecks.
A teller at a major bank said she is expected to sell three new checking, savings, or debit card accounts every day. If she falls short, she gets written up.
Customer service representatives at one major bank’s call-center said everyone is expected to make at least 40 percent of the sales of the top seller. Credit card sales count for extra, encouraging callers to push credit cards on customers who would be better served with checking or savings accounts.
A call-center worker said she offers a credit card to every customer, regardless of whether it would be beneficial. She explained: “If you aren’t offering, you can get marked down — the managers and Quality Analysts listen to your call, and can tell if you aren’t offering.”
“We’re not servicing their needs,” said one front-line worker. “What they want, what they need, isn’t important to us. Selling them a product is … Some of our customers just have their savings, many are just retirees.”
As the report concludes, “Our nation’s big banks are committed to a model that jeopardizes our communities and prevents bank employees from having a voice in their workplace.”
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Whose Recovery? We’re ‘Fed Up’
The Fed Up campaign made their presence known in Jackson Hole, Wyoming hoping to convince the Republican Party that the...
The Fed Up campaign made their presence known in Jackson Hole, Wyoming hoping to convince the Republican Party that the Federal Reserve is ruining the economy. CNBC’s Heesun Wee and campaigner Connie Razza discuss.
Duration: 12:05
Source: MSNBC
Two Federal Reserve Openings Provide One Chance to Counter Trump
The Federal Reserve is facing a significant change in leadership that goes beyond the installation of a new chairman....
The Federal Reserve is facing a significant change in leadership that goes beyond the installation of a new chairman. It is also awaiting the appointment of two other top officials who will play a crucial role in shaping Fed policy.
President Trump, who has already nominated Jerome H. Powell as the Fed’s next chairman, also gets to pick a new vice chairman. But the other open position, the presidency of the Federal Reserve Bank of New York, is not Mr. Trump’s choice to make.
Read the full article here.
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...
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.
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Safety coalition: ‘Scaffold Law’ study is ‘flawed’
Safety & Health Magazine - April 18, 2014 - A recent study that questioned the usefulness of New York state’s “...
Safety & Health Magazine - April 18, 2014 - A recent study that questioned the usefulness of New York state’s “Scaffold Law” is flawed, according to a new report from a worker safety advocacy coalition.
In December, a study from State University of New York’s Rockefeller Institute of Government concluded that New York’s Labor Law 240 – which imposes a strict liability on employers for workplace injuries at height – drives up the cost of business without improving worker safety.
But an April 17 report from the Center for Popular Democracy and the New York Committee for Occupational Safety and Health called the Rockefeller study “biased,” noting that the study was paid for by the New York Civil Justice Institute, a group created by an alliance criticized as working on behalf of employer and industry interests.
The Rockefeller study confused correlation with causation, the two worker safety advocacy groups say, by claiming differences between worker injury rates in construction and non-construction industries in New York and elsewhere are entirely due to the Scaffold Law.
CPD and NYCOSH are partners in a newly launched Scaffold Safety Coalition, a group of workers, advocates and other organizations that have joined to defend the state’s Scaffold Law.
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Toys 'R' Us owners will hand out $20 million severance to employees
The fund was set up following negotiations between the private equity firms and various public interest groups that...
The fund was set up following negotiations between the private equity firms and various public interest groups that organized the employees, including Organization United for Respect, Private Equity Stakeholder Project and Center for Popular Democracy. "This Fund begins to ensure the hard-working people who spent their lives building Toys 'R' Us and making children happy are not left out in the cold," said Marilyn Muniz, a New York-based Toys "R" employee for nearly 20 years.
Read the full article here.
Another Police Department Says ‘No’ To ICE’s Detainer Requests
Mint Press News – August 27, 2013, by Katie Rucke - Newark, N.J.’s refusal to detain undocumented immigrants for...
Mint Press News – August 27, 2013, by Katie Rucke -
Newark, N.J.’s refusal to detain undocumented immigrants for minor offenses could serve as an olive branch to the immigrant community.
As of last month, the Newark, New Jersey police department is no longer taking orders from Immigration and Customs Enforcement (ICE) to detain undocumented immigrants who have been picked up for minor criminal offenses such as shoplifting or vandalism.
The policy was signed into law by Newark Police Director Samuel DeMaio on July 24.
Newark may be the first and only law enforcement agency in New Jersey no longer to honor detainer requests from ICE, but it’s far from the only police department in the country to have done so. Police departments in Los Angeles, the District of Columbia, Chicago, New York City and New Orleans have also implemented policies stating they won’t honor ICE detainer requests.
The policy change was applauded by civil rights and faith leaders, who say the detainers — which allow law enforcement to hold in custody for up to 48 hours, without a warrant, those whose immigration status is in question — discourage communities of immigrants and law enforcement officials from having a cooperative relationship.
Immigrant-rights advocates said they view the new police protocol as an olive branch to undocumented people living in the U.S., who may be hesitant to cooperate with police officers who are investigating crimes in the community for fear they may be deported. New Jersey reportedly has one of the largest immigrant populations in the nation.
“Law enforcement officials across the country have recognized that local police officers should not be in the business of federal immigration enforcement,” said Udi Ofer, executive director of the American Civil Liberties Union (ACLU) of New Jersey, which advocated for the policy shift.
“With this new policy in place, the Newark Police Department has made it clear that all residents, regardless of their immigration status, are safe to cooperate with the police,” Ofer continued in the release. “This policy ensures that if you’re a victim of a crime, or have witnessed a crime, you can contact the police without having to fear deportation. This will make all Newarkers safer.”
Emily Tucker is an attorney at the Center for Popular Democracy. She said the group was “thrilled that Newark is standing in solidarity with immigrant families by rejecting all future collaboration with the federal deportation apparatus.
“Spending local tax dollars to take parents away from their children and workers away from their jobs is both morally wrong and bad for the economy,” Tucker said. “We hope the Newark policy will serve as a model for the rest of New Jersey, and for cities around the country who don’t want local resources being spent to help ICE meet its arbitrary enforcement quotas.”
New Jersey to New Orleans to Los Angeles
The New York Times recently published an editorial applauding those cities that have announced they will no longer be cooperating with ICE’s detainer requests and encouraged other cities to follow suit.
“The federal dragnet that makes little distinction between tamale sellers and dangerous criminals — greatly expanded by the use of local law enforcement officials across the country — has been ensnaring record numbers of minor offenders,” the editorial board wrote. “This melding of local crime fighting and immigration enforcement has led to unjust imprisonment, policing abuses, racial profiling and paralyzing fear in immigrant communities.
“The damage to public safety is measurable; a recent study by researchers at the University of Illinois at Chicago found that Latinos, both immigrants and native-born, often shun the police and are reluctant to cooperate with criminal investigations. Combating domestic violence, sexual abuse and gang-related crimes becomes far more difficult when local cops are de facto federal agents.”
Amy Gottlieb, director of the American Friends Service Committee, said she hoped other law enforcement agencies would implement similar policies, adding that “any detainer policy where people are aware that the police department is acting in support of the immigrant community is going to be helpful for police and immigrant relations.”
While Newark officers will no longer hold persons in an immigration detention center for committing a minor-level offense, the Newark Police Department will still report information to ICE after arresting an individual and also will continue to share fingerprint information with federal investigators.
“If we arrest somebody for a disorderly persons offense and we get a detainer request, we’re not going to hold them in our cell block,” DeMaio said. “I don’t know if we’ve ever gotten a detainer request on a guy with a misdemeanor,” adding that the department received a total of eight detainer requests in 2012.
Helpful or harmful to a city’s crime fighters?
While California Gov. Jerry Brown (D) has said he would sign legislation limiting who state and local law enforcement officials can hold for deportation, and while Connecticut’s legislature unanimously passed similar legislation, not everyone thinks the policy is a good idea.
Republican U.S. Senate candidate Steve Lonegan, for example, called the policy “another in a long line of missteps” by his opponent, Newark Mayor Cory Booker (D), saying the new policy will only lead to an increase in crime.
“We’re sending a signal,” he said, that “you can come to the country illegally, you can shoplift, you can vandalize but it’s alright. We’re going to make sure you’re safe. It’s a great message to our kids.”
Kevin Griffs, a spokesman for the Booker campaign, said Lonegan’s understanding of the policy was inaccurate and explained that “all serious offenders obviously go to the county jail, and ultimately, the mayor’s thinking was that this was going to improve relations between the police department and the immigrant community and help the Newark Police Department catch more of the real bad guys.”
ICE officials have declined to comment on the policy change.
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80 Arrested in DC Protesting GOP Health Care Bill
Capitol Police arrested 80 people protesting the Republican health care bill in Washington, DC, reports CNN. Over 100...
Capitol Police arrested 80 people protesting the Republican health care bill in Washington, DC, reports CNN. Over 100 protesters from across the United States gathered outside GOP lawmakers’ offices on July 10 to try to stop the Republican bill—dubbed the Better Care Reconciliation Act (BCRA)—that would repeal and replace the Affordable Care Act (ACA, or Obamacare).
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White/Rich/Democrats Finance Proudly Racist #Blacklivesmatters
White/Rich/Democrats Finance Proudly Racist #Blacklivesmatters
The famous phrase, “Show me the money” applies in the violent acts of the #blacklivesmatter effort, the racism and...
The famous phrase, “Show me the money” applies in the violent acts of the #blacklivesmatter effort, the racism and bigotry sweeping the nation. It is about rich, white Democrats financing the effort to divide American among racial lines, to create chaos and anarchy. Last week a group from #blacklivesmatter closed down a portion of the 405 Freeway in the West Los Angeles area, and not a single person was arrested. Of course LA cops are not allowed to detain or arrest illegal aliens, either, for violation of immigration laws. It is as if LA does not have a police force—or the police force is protecting the lawbreakers and making honest Angelenos victims.
“The Democracy Alliance was created in 2005 by a handful of major donors, including billionaire financier George Soros and Taco Bell heir Rob McKay to build a permanent infrastructure to advance liberal ideas and causes. Donors are required to donate at least $200,000 a year to recommended groups, and their combined donations to those groups now total more than $500 million. Endorsed beneficiaries include the Center for American Progress think tank, the liberal attack dog Media Matters and the Democratic data firm Catalist, though members also give heavily to Democratic politicians and super PACs that are not part of the DA’s core portfolio. While the Democracy Alliance last year voted to endorse a handful of groups focused on engaging African-Americans in politics ― some of which have helped facilitate the Black Lives movement ― the invitation to movement leaders is a first for the DA, and seems likely to test some members’ comfort zones.
#blacklivesmatter it one of the chosen totalitarian organizations supported by these rich/white Democrats. My guess is they prefer chaos to stability, violence to peace and bigotry to love.
Some of the biggest donors on the left plan to meet behind closed doors next week in Washington with leaders of the Black Lives Matter movement and their allies to discuss funding the burgeoning protest movement, POLITICO has learned.
The meetings are taking place at the annual winter gathering of the Democracy Alliance major liberal donor club, which runs from Tuesday evening through Saturday morning and is expected to draw Democratic financial heavyweights, including Tom Steyer and Paul Egerman.
The DA, as the club is known in Democratic circles, is recommending its donors step up check writing to a handful of endorsed groups that have supported the Black Lives Matter movement. And the club and some of its members also are considering ways to funnel support directly to scrappier local groups that have utilized confrontational tactics to inject their grievances into the political debate.
It’s a potential partnership that could elevate the Black Lives Matter movement and heighten its impact. But it’s also fraught with tension on both sides, sources tell POLITICO.
The various outfits that comprise the diffuse Black Lives Matter movement prize their independence. Some make a point of not asking for donations. They bristle at any suggestion that they’re susceptible to being co-opted by a deep-pocketed national group ― let alone one with such close ties to the Democratic Party establishment like the Democracy Alliance.
And some major liberal donors are leery about funding a movement known for aggressive tactics ― particularly one that has shown a willingness to train its fire on Democrats, including presidential candidates Hillary Clinton and Bernie Sanders.
“Major donors are usually not as radical or confrontational as activists most in touch with the pain of oppression,” said Steve Phillips, a Democracy Alliance member and significant contributor to Democratic candidates and causes. He donated to a St. Louis nonprofit group called the Organization for Black Struggle that helped organize 2014 Black Lives Matter-related protests in Ferguson, Missouri, over the police killing of a black teenager named Michael Brown. And Phillips and his wife, Democracy Alliance board member Susan Sandler, are in discussions about funding other groups involved in the movement.
The movement needs cash to build a self-sustaining infrastructure, Phillips said, arguing “the progressive donor world should be adding zeroes to their contributions that support this transformative movement.” But he also acknowledged there’s a risk for recipient groups. “Tactics such as shutting down freeways and disrupting rallies can alienate major donors, and if that’s your primary source of support, then you’re at risk of being blocked from doing what you need to do.”
The Democracy Alliance was created in 2005 by a handful of major donors, including billionaire financier George Soros and Taco Bell heir Rob McKay to build a permanent infrastructure to advance liberal ideas and causes. Donors are required to donate at least $200,000 a year to recommended groups, and their combined donations to those groups now total more than $500 million. Endorsed beneficiaries include the Center for American Progress think tank, the liberal attack dog Media Matters and the Democratic data firm Catalist, though members also give heavily to Democratic politicians and super PACs that are not part of the DA’s core portfolio. While the Democracy Alliance last year voted to endorse a handful of groups focused on engaging African-Americans in politics ― some of which have helped facilitate the Black Lives movement ― the invitation to movement leaders is a first for the DA, and seems likely to test some members’ comfort zones.
“Movements that are challenging the status quo and that do so to some extent by using direct action or disruptive tactics are meant to make people uncomfortable, so I’m sure we have partners who would be made uncomfortable by it or think that that’s not a good tactic,” said DA President Gara LaMarche. “But we have a wide range of human beings and different temperaments and approaches in the DA, so it’s quite possible that there are people who are a little concerned, as well as people who are curious or are supportive. This is a chance for them to meet some of the leaders of the Black Lives Matter movement, and understand the movement better, and then we’ll take stock of that and see where it might lead.”
According to a Democracy Alliance draft agenda obtained by POLITICO, movement leaders will be featured guests at a Tuesday dinner with major donors. The dinner, which technically precedes the official conference kickoff, will focus on “what kind of support and resources are needed from the allied funders during this critical moment of immediate struggle and long-term movement building.”
The groups that will be represented include the Black Youth Project 100, The Center for Popular Democracy and the Black Civic Engagement Fund, according to the organizer, a DA member named Leah Hunt-Hendrix. An heir to a Texas oil fortune, Hunt-Hendrix helps lead a coalition of mostly young donors called Solidaire that focuses on movement building. It’s donated more than $200,000 to the Black Lives Matter movement since Brown’s killing. According to its entry on a philanthropy website, more than $61,000 went directly to organizers and organizations on the ground in Ferguson and Baltimore, where the death of Freddie Gray in police custody in April sparked a more recent wave of Black Lives-related protests. An additional $115,000 went to groups that have sprung up to support the movement.
She said her goal at the Democracy Alliance is to persuade donors to “use some of the money that’s going into the presidential races for grass-roots organizing and movement building.” And she brushed aside concerns that the movement could hurt Democratic chances in 2016. “Black Lives Matter has been pushing Bernie, and Bernie has been pushing Hillary. Politics is a field where you almost have to push your allies hardest and hold them accountable,” she said. “That’s exactly the point of democracy,” she said.
That view dovetails with the one that LaMarche has tried to instill in the Democracy Alliance, which had faced internal criticism in 2012 for growing too close to the Democratic Party.
In fact, one group set to participate in Hunt-Hendrix’s dinner ― Black Civic Engagement Fund ― is a Democracy Alliance offshoot. And, according to the DA agenda, two other groups recommended for club funding ― ColorOfChange.org and the Advancement Project ― are set to participate in a Friday panel “on how to connect the Movement for Black Lives with current and needed infrastructure for Black organizing and political power.”
ColorOfChange.org has helped Black Lives Matter protesters organize online, said its Executive Director Rashad Robinson. He dismissed concerns that the movement is compromised in any way by accepting support from major institutional funders. “Throughout our history in this country, there have been allies who have been willing to stand up and support uprisings, and lend their resources to ensure that people have a greater voice in their democracy,” Robinson said.
Nick Rathod, the leader of a DA-endorsed group called the State Innovation Exchange that pushes liberal policies in the states, said his group is looking for opportunities to help the movement, as well. “We can play an important role in facilitating dialogue between elected officials and movement leaders in cities and states,” he said. But Rathod cautioned that it would be a mistake for major liberal donors to only give through established national groups to support the movement. “I think for many of the donors, it might feel safer to invest in groups like ours and others to support the work, but frankly, many of those groups are not led by African-Americans and are removed from what’s happening on the ground. The heart and soul of the movement is at the grass roots, it’s where the organizing has occurred, it’s where decisions should be made and it’s where investments should be placed to grow the movement from the bottom up, rather than the top down.”
By STEPHEN FRANK
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