Protesters Press Diversity Case as New York Fed Seeks New Chief
Protesters Press Diversity Case as New York Fed Seeks New Chief
“Fed up, we can’t take it no more!” chanted a group of about 50 green shirt-clad members of Fed Up, a grass-roots...
“Fed up, we can’t take it no more!” chanted a group of about 50 green shirt-clad members of Fed Up, a grass-roots advocacy campaign that has received backing from Facebook billionaire Dustin Moskovitz. Fed Up is pushing central bankers to keep focused on creating more jobs. America’s unemployment rate is at its lowest since late 2000. But when Fed Up’s members look at the labor market, they see the people that they say the central bank has overlooked. That’s why they and other progressives, including Democratic lawmakers, are pressing the New York Fed to consider a diverse slate of candidates as it weighs replacements for its president, William Dudley, who plans to step down this year.”
Read the full article here.
Report Spotlights the New York Elites Who Fund Nativist Groups
Donald Trump, the current front-runner for the Republican presidential nomination, is at the right end of his party's...
Donald Trump, the current front-runner for the Republican presidential nomination, is at the right end of his party's spectrum on immigration issues, but according to a new report put out by advocates for the undocumented, titled “Backers of Hate in the Empire State,” he's hardly alone in pushing a nativist agenda in New York. The report names the names of others who help fund and organize the institutions of American nativisim.
To these advocates, the Center for Public Democracy Action and Make the Road Action Fund, the Trump campaign's restrictionist immigration policies, backed up by an emphasis on the undocumented’s supposed criminality and the need to “take our country back,” are dangerous and extreme. Early on in his campaign, Trump described Mexican immigrantsas drug dealers and “rapists," released a plan for the mass deportation of 11.3 million undocumented immigrants, and called for the abolition of birthright citizenship.
The report argues that the prominence of such discourse in our politics does not reflect public opinion, which broadly supports a pathway to citizenship for the undocumented. Rather, this rhetoric is driven by the activism of an impassioned minority, which influences immigration politics through organizations like the Federation for American Immigration Reform (FAIR). And groups like FAIR are driven by New Yorkers like Alan and Donald Weeden.
The Weedens are best known as the directors of the Weeden Foundation, an environmentalist nonprofit based in New York. On its website, the foundation calls the “protection of biodiversity” its top priority. But in the name of “population stabilization,” the foundation and its directors have spent hundreds of thousands of dollars on groups that the report asserts are working to limit the ethnic diversity of the United States.
The Weeden Foundation donated $100,000 to FAIR in 2013, and Alan Weeden has served on the group’s Board of Directors, according to the report. In Washington, FAIR is treated like a legitimate lobby, and its leaders have been invited to testify before Congress on matters of immigration more than 100 times. But the Southern Poverty Law Centerclassifies FAIR as a hate group, and the Anti-Defamation League has called the group reckless and xenophobic.
FAIR was founded in 1979 by John Tanton, a retired ophthalmologist and pioneering anti-immigration activist. Tanton has well-documented ties to several white nationalist leaders, and once authored a paper titled “The Case for Passive Eugenics.” In a letter from 1993, Tanton wrote, “I’ve come to the point of view that for European-American society and culture to persist requires a European-American majority, and a clear one at that.” While Tanton is no longer in FAIR’s leadership, he remains a celebrated figure in the organization. And FAIR’s current president, Dan Stein, appears to share much of Tanton’s basic worldview. In 1998, Stein said, “Immigrants don't come all church-loving, freedom-loving, God-fearing … Many of them hate America, hate everything that the United States stands for. Talk to some of these Central Americans.” FAIR was instrumental in the passage of Arizona’s SB 1070 law, which requires police to determine the immigration status of someone arrested or detained when they have “reasonable suspicion” that the individual is not in the U.S. legally — a measure that critics argued would encourage the racial profiling of Hispanic immigrants.
Donald E. Weeden sits on the board of NumbersUSA, and his family foundation gave the group $350,000 in 2013. Founded by Tanton ally Roy Beck, NumbersUSA operates as a grassroots-driven lobby for reducing immigration to pre-1965 levels. One of NumbersUSA’s “sensible solutions” for immigration is the elimination of birthright citizenship, a fringe policy that gained mainstream visibility with Trump’s recent backing.
Former New York University professor and conservative author Carol A. Iannone sits on the Board of Directors at the Center for Immigration Studies (CIS). Spun off from FAIR in 1985, CIS is a putatively nonpartisan think tank whose self-described mission is to provide policymakers with "reliable information about the social, economic, environmental, security, and fiscal consequences of legal and illegal immigration into the United States." The think tank’s research and statistics are often cited by members of Congress and mainstream news outlets, despite falling under perpetual criticism for their distortions. In 2014, a CIS blog post provided readers with a map titled “A Town Near You? ICE Reveals Locations of Convicted Murderers It Freed.” The map underscored the alarmism of a CIS report that claimed Immigration and Customs Enforcement (ICE) had released 68,000 criminal aliens in 2013. Both ICE and an investigation by the Daily Beast found the report to be significantly misleading, both for the way it grouped traffic convictions with more serious crimes, and suggested that the U.S. government has the authority to indefinitely detain or deport any undocumented immigrant who is guilty of any crime. A 2001 Supreme Court ruling requires the U.S. to release undocumented immigrants who have served out their prison sentences, even if they cannot be deported because of their home country's denial of reentry.
In her own work, Iannone has echoed Tanton’s concerns with immigration’s threat to American culture, writing in The American Conservative that the 1965 Immigration Act brought about a “significant change in our national character,” as it allowed for mass immigration “to overwhelm our assimilative capacity.”
Among the other individuals singled out in the report is Barbara Winston, president of the Bruce Winston Gem Corporation and a prominent donor to the GOP, who Newsmax once put on its list of 2015’s “75 Most Influential Jewish Republicans.” Winston sits on the board of Keep Identities Safe, a group founded in the wake of September 11 to lobby for restricting access to driver's licenses, so as to prevent future terrorists from being able to board airplanes. However, the group has gone on to advocate for policies combating “ID fraud” of all kinds, including the fake IDs that allow teenagers to purchase alcohol. While much of the group’s advocacy is founded on the premise that the undocumented are more likely to commit acts of terrorism than non-U.S. citizens, Keeping Identities Safe is less intimately tied to the broader American nativist movement than the other organizations the report derides.
But the group has had a profound impact on the lives of undocumented New Yorkers. In 2007, while operating under their former name, Coalition for a Secure Driver’s License, the lobby helped defeat a bill that would have granted undocumented immigrants access to state licenses in New York. At the time, that opposition was hardly limited to hard-core nativists — current Democratic front-runner Hillary Clinton came out against the measure during her last presidential campaign.
This time around, Clinton is campaigning in support of state licenses for the undocumented. Her reversal is a testament to the success that groups like Make the Road Action Fund have had in shifting the boundaries of the immigration debate within the Democratic Party.
With its new report, the group hopes to extend its influence to the other side of the aisle. The true target of the report is not the individual donors and activists it names, who are all perfectly familiar with their own associations and work. Rather, the research is aimed squarely at the New York GOP.
“We think that the Republican Party of New York should dissociate themselves, not only from the candidates that are pushing this hateful rhetoric, but also from the institutions and individuals that are supporting them,” Make the Road Action Fund co-director Javier Valdés told Daily Intelligencer.
The group will hold a protest outside of a storefront owned by Barbara Winston Tuesday afternoon, with the aim of highlighting the diamond seller’s ties to both the New York GOP and nativist causes.
For now, though, New York’s most prominent Republican continues to push the boundaries of the immigration debate ever rightward, whilesteadily advancing toward a presidential nomination.
Corrections: An earlier version of this story identified Carol Iannone as a current professor at NYU. Ms. Iannone has not been affiliated with the university since 1999. It also failed to properly credit the assertion that FAIR and CIS are organizations that seek to "limit the ethnic diversity of the United States" to the report's authors. Both organizations dispute that characterization of their work.
Source: New York Magazine
Live coverage of the Local Progress and the People's Convention in Pittsburgh
Live coverage of the Local Progress and the People's Convention in Pittsburgh
This weekend we'll be covering events at the Local Progress National Convening and Center for Popular Democracy's...
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
El año arranca con protesta de Dreamers
El año arranca con protesta de Dreamers
Con pancartas en mano un grupo de jóvenes inmigrantes y partidarios se reunieron este miércoles frente a la oficina de...
Con pancartas en mano un grupo de jóvenes inmigrantes y partidarios se reunieron este miércoles frente a la oficina de la senadora demócrata de California Dianne Feinstein en Los Ángeles para pedirle que luche por la aprobación del Dream Act.
Lea el artículo completo aquí.
Elizabeth Warren and more than 100 House Democrats blast lack of diversity at the Fed
Elizabeth Warren and more than 100 House Democrats blast lack of diversity at the Fed
The Federal Reserve System is one of the most important institutions in the entire American government. Its composition...
The Federal Reserve System is one of the most important institutions in the entire American government. Its composition is also almost shockingly non-diverse, with zero African Americans or Latinos serving on the key panel whose decisions impact job creation and the pace of economic growth, despite fairly overwhelming evidence that Fed decisions impact racial groups differently.
What's more, the bodies that choose which people sit on that non-diverse committee are themselves extremely non-diverse — locking into place a system in which the interests of African Americans, Latinos, and lower-income people more generally may be underconsidered in making decisions about unemployment, inflation, and interest rates.
All this is the subject of a letter released at noon today by a group of 111 members of the House of Representatives plus 11 senators, headlined by Elizabeth Warren, Cory Booker, Bernie Sanders, Jeff Merkley, Kirsten Gillibrand, and Al Franken, demanding that the Fed pay more attention to diversity in its ranks.
The key graf:
According to a study by the Center for Popular Democracy released in early February, 2016, 83 percent of Federal Reserve head office board members are white, and men occupy nearly three-fourths of all regional bank directorships. The lack of public representation on regional Banks’ boards is even more distressing in light of the lack of diversity among regional Bank presidents and the resulting lack of diversity on the Federal Open Market Committee (FOMC). Currently, 92 percent of regional Bank presidents are white, and not a single president is either African-American or Latino. Moreover, at present 100 percent of voting FOMC participants are white, while 83 percent of regional Bank presidents and 60 percent of voting FOMC members are men.
Progressives interested in monetary policy issues have long struggled to engage the public, activist groups, or elected officials in the topic. The focus on diversity from the left-wing Center for Popular Democracy's "Fed Up" campaign that inspired this letter represents a new tactical effort to change that.
Diversity among decision-makers is not, of course, directly a monetary policy issue. But as the letter points out, monetary policy does have significant consequences for racial disparities in employment. They cite research from the Economic Policy Institute "demonstrating that for every .91 percent reduction in unemployment for whites, black unemployment drops 1.7 percent" meaning that African Americans have more to gain from monetary policy that is more pro-growth and less inflation-averse.
Michigan Representative John Conyers who was one of the main driving forces behind the letter issued a statement observing that "Detroit and cities across the country with high minority populations have some of the highest unemployment rates and will be harmed if the Federal Reserve does not consider our needs when they make key policy decisions."
How the Federal Reserve is organized
The specifics of the letter hinge on the structure of the Federal Reserve system, which is, in a word, confusing.
The main hub of the Fed is the Board of Governors in Washington, DC, which consists of a chair, a vice chair, and five other board members. Currently there are two vacancies on the board, and all five board members are white.
In addition to the Board of Governors, there are 12 regional Federal Reserve banks, each of which has its own president and its own board of directors. Each bank's president is selected by its board, with the choice subject to confirmation by the main board. Each regional bank board itself is composed in part of members selected by the private banks of the region and in part of members selected by the central board.
Monetary policy decisions are made by what's known as the Open Market Committee. The committee is composed of the seven members of the Board of Governors (at present, again, there are two vacancies) plus the president of the New York Fed, plus four other regional bank presidents serving on a rotating basis.
The point of the letter is that all these various groups underrepresent women and massively underrepresent African Americans and Latinos.
Today's Fed neglects race
Diversity of membership is neither necessary nor sufficient to ensure that a broad range of interests is represented. But there is considerable evidence that the current not-so-diverse group of monetary policymakers is not considering the full range of interests in American society.
Narayana Kocherlakota, the former president of the Federal Reserve Bank of Minneapolis, was the only nonwhite FOMC member during his term and offered this observation back in January:
However, there is one key source of economic difference in American life that is likely underemphasized in FOMC deliberations: race. Let’s look, for example, at the most recently released transcripts for FOMC meetings, which cover the year 2010 (my first full year on the Committee). It was a challenging year for the US economy as a whole, as the unemployment rate was above 9 1/4% in every month. But it was especially challenging for African-Americans: In every month of 2010, the unemployment rate among African-Americans was at least 15 1/2%. I did a search of the hundreds of pages of the meeting transcripts. Based on that search, my conclusion is that there was no reference in the meetings to labor market conditions among African-Americans (or Black Americans).
Monetary policymakers, with their needed independence, always risk being (or at least being seen as) insufficiently empathetic to the lives of their nations’ citizens. The Federal Reserve Act has mitigated this risk in the US by ensuring that an appreciation for economic diversity is at the heart of the FOMC’s deliberations.
The details of monetary policy get pretty complicated, and there's rarely been much sign of normal people being interested in them. But issues about who is represented and whose interests get discussed are easier to understand, so you can see why this particular angle is gaining momentum in Congress.
After the release of the letter, Hillary Clinton also weighed-in on the issue via spokesman Jesse Ferguson who offered a statement:
The Federal Reserve is a vital institution for our economy and the wellbeing of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That's why 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. Secretary Clinton will also defend the Fed's so-called dual mandate — the legal requirement that it focus on full employment as well as inflation — and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry
By Matthew Yglesias
Source
Trump Picks Federal Reserve Governor Jerome Powell To Lead The Central Bank
Trump Picks Federal Reserve Governor Jerome Powell To Lead The Central Bank
“It’s relieving that Trump chose someone that represents continuity from the current Fed,” said Jordan Haedtler,...
“It’s relieving that Trump chose someone that represents continuity from the current Fed,” said Jordan Haedtler, manager of the Fed Up campaign, a coalition of groups that advocates for progressive Fed policies. “But it’s also unclear why if he wants continuity with the Fed’s policies of accommodating monetary policy and reasonable financial protections, he would not have reappointed Janet Yellen, who is by many metrics the most successful chair in Fed history.
Read the full article here.
Janet Yellen To Jobless African-Americans: You're On Your Own
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed'...
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed's concerns about inflation limit its ability to address high African-American unemployment.
“So, there really isn’t anything directly the Federal Reserve can do to affect the structure of unemployment across groups,” Yellen said during the House Financial Services Committee’s semiannual hearing on Federal Reserve policy. “And unfortunately, it’s long been the case that African-American unemployment rates tend to be higher than those on average in the nation as a whole.”
The African-American unemployment rate was 9.5 percent in June, nearly twice the rate of 5.3 percent in the population overall.
But Yellen said that the Fed’s ability to address this problem was limited by its commitment to keeping inflation under 2 percent.
Yellen’s remarks were in response to a question posed by Rep. Joyce Beatty (D-Ohio) as to whether the Fed was taking the high rate of African-American unemployment into account when assessing the health of the labor market. Beatty was one of several African-American committee members, including ranking member Rep. Maxine Waters (D-Calif.), who enjoined Yellen to consider the disproportionately high rate of African-American unemployment in deciding when to raise interest rates.
At the hearing, Yellen reaffirmed the Fed’s previous indications that it would raise interest rates before the year’s end. "If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said in her prepared testimony.
Maintaining price stability is one-half of the Fed’s dual mandate, together with maximizing employment. If the Fed prints more money, it spurs higher employment, ultimately putting upward pressure on prices. If it tightens the monetary supply, by raising interest rates, it keeps prices low, but also depresses employment.
Many progressive economists and activists fault the Fed for continuing to prioritize the inflation part of its dual mandate at the expense of full employment. It is a tendency they say disproportionately affects African-Americans, who already suffer from high unemployment and discrimination in the job market.
Jordan Haedtler, deputy campaign manager of the Center for Popular Democracy’s Fed Up campaign, which mobilizes communities of color for pro-employment Fed policy, said that Yellen’s Wednesday remarks are a reflection of this approach.
“It is indicative of the Fed’s continued emphasis on inflation even in the face of nonexistent inflation,” Haedtler said. “They are myopically focused on one portion of their dual mandate while ignoring another. If the Fed is saying that the economy is on enough of a positive trajectory to raise rates, they are saying they are OK with 9.5 percent black unemployment.”
The Fed Up campaign wants the Federal Reserve to wait for more significant wage growth before raising rates.
It is also encouraging regional Federal Reserve banks, along with Fannie Mae and Freddie Mac, to sell homes with delinquent mortgages to nonprofit organizations that are more likely to refurbish them. Currently, Fed Up claims, the homes often go to for-profit buyers who leave them in disrepair, limiting the economic recovery in many urban communities of color.
Source: Huffington Post
Are Superstar Firms and Amazon Effects Reshaping the Economy?
Are Superstar Firms and Amazon Effects Reshaping the Economy?
“Wage stagnation is not a puzzle,” said Marshall Steinbaum, a fellow at the Roosevelt Institute, who spoke on a panel...
“Wage stagnation is not a puzzle,” said Marshall Steinbaum, a fellow at the Roosevelt Institute, who spoke on a panel organized by the activist group Fed Up outside the lodge where the Fed symposium later took place. “Cutting-edge research tells us exactly what’s going on, and yet the Fed seems to be considering this for the first time.”
Read the full article here.
Hundreds of people showed up to thank Ford for testifying
Hundreds of people showed up to thank Ford for testifying
Tracey Corder, an organizer with the progressive Center for Popular Democracy, said she has been meeting with...
Tracey Corder, an organizer with the progressive Center for Popular Democracy, said she has been meeting with Republican members of Congress in recent days and urging them to take Ford’s allegations seriously.“Survivors are being retraumatized by all of this, and we’ve been telling [senators] that we need a Supreme Court justice who is a fair and decent person,” said Corder, who flew in from Oakland, California, to join the demonstrations. “If this were an episode of Scandal, [Kavanaugh] would have withdrawn by now,” she continued. “That’s our current politics —it’s even more absurd than television.”
Read the full article here.
Open thread for night owls: 'Fearless Cities' push back against the rise of the right
Open thread for night owls: 'Fearless Cities' push back against the rise of the right
Jimmy Tobias at The Nation writes—These Cities Might Just Save the Country: Dispatches from the Urban Resistance, from...
Jimmy Tobias at The Nation writes—These Cities Might Just Save the Country: Dispatches from the Urban Resistance, from Atlantic City to Miami Beach: On the second weekend of June, hundreds of activists, NGO workers, mayors, city councilmembers, academics and others from Spain and around the world flocked to Barcelona to discuss progressive resistance to the the rise of the right wing wherever it exists...
Read the full article here.
2 months ago
2 months ago