Why It's a Big Deal Hillary Clinton Plans to Shake Up the Fed
Why It's a Big Deal Hillary Clinton Plans to Shake Up the Fed
Hillary Clinton is taking on the United States Federal Reserve System, but in a wonky, bottom's-up way that shows her...
Hillary Clinton is taking on the United States Federal Reserve System, but in a wonky, bottom's-up way that shows her understanding of a complex and widely misunderstood organization. This is not "End the Fed" or even "audit the Fed" — she wants to rebuild it from its fundamentals at the regional level.
To paraphrase Mitt Romney, the Federal Reserve is people, my friend. Hillary Clinton's recent proposal to change the roster of Fed officials who ultimately make monetary policy and regulatory decisions might be the most effective Fed-reform idea since the financial crisis. Generally, the public pays attention to little more than the face of the organization — the Fed's chairperson, currently Janet Yellen — who announces and explains the Fed's decisions. But beneath Yellen functions an intricate and influential bureaucracy that's dominated by interests from the financial sector, the vast majority of them white men, and may well be blind to the reality of a vast majority of Americans.
The Federal Reserve was set up in 1917, in the wake of a financial crisis, as a private national bank that could serve as lender of last resort to other banks. If a bank needed money to make good on deposits, it could go to the Fed for a short-term loan. It was, since its inception, a bankers' institution, run for banks, by banks. But its role has clearly evolved as credit markets have developed and as the Fed's mandate was changed to pursue price stability (low inflation) and full employment at the same time, while helping to regulate the sector for which it also serves as lender.
As the Fed's mission has expanded, its governance has not. The Fed is run by a seven-member board in Washington, D.C., and a dozen regional bank presidents based in financial centers throughout the country (New York, St. Louis, Kansas City and Cleveland, among others). While the crew in D.C. is selected by the president and vetted by Congress, the regional bank presidents are chosen by the financial industry and tend to be either bankers or career Fed employees. Of the 12 bank presidents, two are women and only one is not white.
New York's regional president is Willian C. Dudley, previously a Goldman Sachs managing director. Robert S. Kaplan of Dallas was a former vice chairman at Goldman. Neel Kashkari, a known financial reformer, is nonetheless a former employee of PIMCO, one of the world's largest asset managers and a subsidiary of German financial behemoth Allianz. Dennis P. Lockhart, president of the Federal Reserve Bank of Atlanta is a former Citigroup executive.
Clinton's proposal would remove bankers from the regional boards of directors. Those boards choose the regional presidents and generate most of the information and perspective that the Federal Reserve governors use to set monetary policy. Clinton clearly understands how the Fed functions. Donald Trump has said he would not reappoint Janet Yellen as chair. Fine. But appointing the Fed chair is merely the most high-profile action a president can take in this regard. It doesn't change the system, and the Fed is known as the Federal Reserve System for a reason.
This is Clinton at her best – she knows how the government works. The region Federal Reserve boards do not get a lot of press. Most people do not know that they are staffed with chief executives from Morgan Stanley, Comerica, KeyCorp and private-equity firms like Silver Lake, and if they do know it, they do not understand its importance.
The Fed is generally a topic of political bluster. "I appointed him and he disappointed me," complained George H.W. Bush about Alan Greenspan, when the Fed chair refused to cut interest rates in the face of a recession that probably cost Bush his re-election in 1992. Before that, Ronald Reagan had to endure Chairman Paul Volcker raising interest rates so high in an effort to combat inflation that out-of-work construction workers were mailing bricks and wooden beams to the Fed in protest.
The idea that the Fed often acts contrary to the interests of working people is not new, but aside from requiring the Fed to pursue full employment in addition to price stability in 1977, presidents who are unhappy with the Fed have done little more than complain. Even after Greenspan disappointed Bush, Bill Clinton reappointed him to the post. When Greenspan retired, Ben Bernanke, an intellectual heir, took the helm. When he retired, Yellen, also an intellectual heir, took over. The power to appoint the Fed chair and governors is not, clearly, the power to change things.
Clinton is digging deeper. Changing the roster of the regional boards will hopefully help more accurate economic information trickle up to the chairperson and the federal governors. Perhaps, even, a labor representative or somebody with closer ties to the common American experience could become a regional bank president.
In her quiet way, tinkering with the inner workings of a near-century old quasi-government institution that is arcane to most, Clinton has a chance to achieve radical, lasting financial reform.
BY MICHAEL MAIELLO
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Yellen and Draghi Speeches to Highlight Jackson Hole Conference
Yellen and Draghi Speeches to Highlight Jackson Hole Conference
Central bankers and economists from around the world will gather in the mountain resort of Jackson Hole, Wyo.,...
Central bankers and economists from around the world will gather in the mountain resort of Jackson Hole, Wyo., beginning Thursday for the Federal Reserve Bank of Kansas City's annual economic symposium.
The theme of this year's conference, "Fostering a Dynamic Global Economy, " highlights the challenges of boosting economic growth during an expansion that has been marked by poor productivity gains, rising protectionism and demands for greater fiscal austerity.
Read the full article here.
‘We are not ready’: Arizona voters warn Election Day could be worse than primary fiasco
‘We are not ready’: Arizona voters warn Election Day could be worse than primary fiasco
PHOENIX, ARIZONA — On Arizona’s primary day this April, voters in Maricopa County waited five hours in the hot sun to...
PHOENIX, ARIZONA — On Arizona’s primary day this April, voters in Maricopa County waited five hours in the hot sun to cast a ballot, because the county slashed the number of polling places from 200 to 60. Some people gave up and left without voting; some fainted in the desert heat. Polling places ran out of ballots.
After the dust settled, angry voters, candidates, and political parties filed a slew of lawsuits against the state, leading to court settlements and a promise that no voter will have to wait longer than half an hour this fall.
“The primary fiasco was a huge wakeup call,” said Samantha Pstross with the Arizona Advocacy Network.
But elected officials and voting rights advocates fear the situation could be just as bad or worse on Tuesday.
“We are not ready for what I presume will be one of the largest turnouts in Arizona history,” Maricopa County supervisor Steve Gallardo told ThinkProgress. “Everyone is banking on a large number of vote-by-mail ballots. But this is not an ordinary election. We have a record number of new Latino voters. We see lots of excitement out there. We need to be prepared to handle this, but we’re already seeing problems.”
“We are not ready for what I presume will be one of the largest turnouts in Arizona history.”
Gallardo cited troubles that have already plagued the county during early voting, when turnout is usually much lighter than on Election Day itself.
On Friday, the final day of in-person early voting, voters in Tempe waited more than three hours to cast a ballot. Among them was Bob Davis, who arrived around 1:15 p.m. with his four-year-old daughter. Though he was told it would be a two-hour wait, he didn’t cast a ballot until nearly 5 p.m.
“I watched like 20 people leave the line who couldn’t wait,” he told ThinkProgress. “I knew the chance of them coming back and trying again was negligible. I felt really upset.”
Davis noted that there is a ballot measure before Arizona voters this year that would raise the minimum wage from just over 8 dollars an hour to 12 by the year 2020. He said he worries those the measure would impact most will not be able to have a say in its passage.
“If you make only 8.05 an hour, your ability to stand in line for four hours is minimal,” he said. “This is actual voter suppression.”
In Glendale, another Phoenix suburb, an understaffed site with insufficient equipment forced voters to wait more than two hours earlier this week.
“It’s discouraging,” Gallardo said. “No one should have to stand in long lines. It becomes a voting barrier. Some folks don’t have the opportunity to wait. Some are elderly and physically can’t stand that long, others only have a short lunch break from work when they can vote. So if you let long lines occur, you are disenfranchising voters.”
Maricopa County had 724 polling places for the 2012 general election. This year, they will have the exact same number, despite adding more than 90,000 more voters to the rolls. Many of those precincts’ polling places are located in the same building, meaning there will be only 640 separate locations.
“What is scary is what could happen on Election Day,” said Pstross. “If there are long lines, people will be disenfranchised left and right.”
Ever-changing laws fuel voter confusion
Arizona smashed its Latino voter registration record in the final weeks of the 2016 election, adding 150,000 new voters to the rolls. The state also led the nation in Latino early voting. Latino residents cast an unprecedented 13 percent of the votes, up from just 8 percent in 2008. Organizers credit Donald Trump for some of this participation spike, noting that his disparagement of immigrants and promises of mass deportations have mobilized Latinos who previously avoided electoral politics.
But as community advocacy groups like Bazta Arpaio, the Arizona Advocacy Network, LUCHA, and others hit the streets of Phoenix in the campaign’s final days, some fear an avalanche of last-minute court cases and legal changes could confuse and disenfranchise the voters they have worked so hard to engage.
This year alone, Arizona mailed out incorrect information about where to vote and mistranslated one of the ballot propositions on thousands of Spanish-language ballots. The state also allowed the final day of voter registration to fall on a federal holiday, leaving thousands of voters unable to register in time.
Then, on Friday night, a federal appeals court temporarily enjoined Arizona’s new law that made it a felony for anyone other than a relative or caretaker to pick up and mail in a voter’s absentee ballot. On Saturday morning, the U.S. Supreme Court reversed the decision and gave Arizona its blessing to enforce the ballot collection ban.
The back-and-forth left organizers scrambling.
Ben Laughlin, an organizer with the “Bazta Arpaio” campaign to unseat the controversial county sheriff Joe Arpaio, got the news of the ruling just before dispatching a small army of canvassers to knock on doors across the city.
“It causes a lot of confusion,” Laughlin told ThinkProgress. “For months we haven’t been collecting ballots because of the ban. Yesterday, we started collecting ballots. Now we’re not. It was a sweet 24 hour window.”
Bazta Arpaio blasted out this message on Friday night: “This weekend, when a volunteer comes to your door, you can have them turn in your ballot with confidence.” Less than a day later, the group had to abandon those plans.
A mother and her two sons hit the streets of West Phoenix with the Bazta Arpaio campaign. CREDIT: Alice Ollstein
Across the city, Asya Pikovsky with the Center for Popular Democracy scrambled to inform dozens of volunteers about the legal development.
“We got on the phone the second the decision came out and told every single person,” she told ThinkProgress on Saturday. “Our canvassers are following the decision to the letter.”
But other advocates expressed fears that some people could accidentally violate the newly-restored law if they did not get the news in time.
“No one should be considered a felon for helping someone else vote — especially someone who would have no other way to get to the polls,” Pstross said.
She fears even those following the law could face unlawful harassment from poll watchers, who have been instructed to follow and photograph those turning in multiple ballots.
“We’re worried that, say, someone who works at a retirement home could show up with 50 to 100 ballots,” she said. “They’re a legitimate caretaker, but even if they’re totally within the law, a crazy person could challenge and intimidate them.”
Sheriffs and vigilantes
Concerns about intimidation by poll-watchers were elevated Saturday, when a federal court declined to put a halt to plans by Trump’s campaign, the Arizona GOP, and a group run by Trump ally Roger Stone to patrol minority-heavy precincts, film those who they suspect of voter fraud, and question people exiting the polls about which candidate they supported.
“It is Plaintiff’s burden to illustrate that these activities are likely to intimidate, threaten, or coerce voters,” the court ruled. “The evidence…has failed to do so.”
But officials and voting rights advocates in Arizona are not just worried about intimidation from such volunteers — They are also sounding the alarm about the potential presence of the county sheriffs at the polls on Election Day.
The Maricopa County Recorder’s office, which administers the election, plans to call in sheriffs if there are any disputes at the polls, even though the head of the department is currently on trial for criminal contempt and racial profiling. Sheriffs have already been summoned to early voting sites, including one incident this week in which voters were upset about turned away at 4:30 p.m. because the polls were supposed to be open until 5 p.m.
“This should be an exciting time for voters — not a time of anxiety or fear.”
Voting rights advocates and elected officials said that having the same sheriffs who conducted immigration raids patrol the polls will intimidate Latino voters. Some groups have called on the Justice Department to send monitors to oversee the sheriffs’ activities, while others are demanding the County Recorder use a different law enforcement agency on Election Day.
“We have a sheriff that has divided and polarized this county and created distrust between the community and the sheriff’s office,” Gallardo said. “It’s time to distance ourselves from the sheriffs’ office and use other agencies like Phoenix Police that actually have credibility with the public. The sheriffs should not be involved in this election.”
“This should be an exciting time for voters — not a time of anxiety or fear,” added Alex Gomez, Executive Director of the Arizona Center for Empowerment. “On Election Day, the story should be about Arizonans proudly casting their ballots — not voters scared off from the polls.”
By Alice Miranda Ollstein
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Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York....
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York. Those cities passed similar legislation after increasing their minimum wage. Adding fair workweek standards was the logical next step, according to Rachel Deutsch, senior staff attorney for worker justice at the Center for Popular Democracy. “Some companies are stuck in this philosophy that labor is the most malleable cost,” she said. “But there has been a ton of data that shows there are hidden costs to this business model that treat workers as disposable.”
Read the full article here.
Hundreds of activists crashed Senate GOP offices, yelling about Medicaid and getting arrested
Hundreds of activists crashed Senate GOP offices, yelling about Medicaid and getting arrested
Art Jackson was diagnosed with HIV in 1989 and given three years to live. Almost 30 years later, the social worker...
Art Jackson was diagnosed with HIV in 1989 and given three years to live. Almost 30 years later, the social worker entered the offices of Sen. Richard Burr (R-NC) — and began shouting that the Republicans’ Senate health care bill must be defeated.
“I’ve lived each day I’ve been given to speak for other who can’t,” said Jackson, 52, of Fayetteville, North Carolina, on Monday afternoon minutes before entering Burr’s office with about 10 other activists from his home state. “We have to stop this.”
Read the full article here.
The Tragedy of Janet Yellen
In December 2012, a new Federal Reserve governor and unseasoned monetary policymaker, Jerome Powell, told his...
In December 2012, a new Federal Reserve governor and unseasoned monetary policymaker, Jerome Powell, told his colleagues that the risks of continued stimulus likely outweighed the benefits. Vice Chair Janet Yellen, even then one of the most experienced policymakers in the Fed’s 104-year history, acknowledged the concerns but pushed back forcefully. She argued that “slow progress in moving the economy back toward full employment will not only impose immense costs on American families and the economy at large, but may also do permanent damage to the labor market.” In other words, if we don’t take risks now to get more Americans employed, the country might lose the opportunity to ever fully recover from the Great Recession. She reminded her colleagues of the promise they had made: “We communicated that we will at least keep refilling the punch bowl until the guests have all arrived, and will not remove it prematurely before the party is well under way.”
Read the full article here.
Parents, Community Leaders Want Dade Middle, Others To Become Community Schools
Parents, Community Leaders Want Dade Middle, Others To Become Community Schools
Dade Middle School in Dallas has had a history of problems. Some community leaders want the Dallas school district to...
Dade Middle School in Dallas has had a history of problems. Some community leaders want the Dallas school district to boost neighborhood involvement and turn Dade into what’s called a community school. Some folks believe more community and parental involvement would make a difference there.
One weekend afternoon last fall, parents and children streamed into the auditorium at Dade Middle School. Music in English and Spanish blared from the speakers.
People from around the country showed up to speak at the school and they talked about getting parents and more of the Dade community involved in improving the school.
Yesenia Rosales was at the school with her two daughters ages 12 and 16. They moved to Texas from Maryland and she said things at Dade seem pretty good so far.
"Teachers seem very interested in helping students," she said.
Not long ago, though, things were pretty rough at Dade. Fights broke out regularly, principals were being replaced frequently and parent involvement was dismal.
Community leaders like Monica Lindsey told parents at that meeting last fall that it was time for a change. Together, she said, they could convince the district to adopt a new model at Dade and other troubled schools.
“And we’re pushing to have 20 schools turned into community schools by 2020. Can you repeat after me? 20 by 2020. 20 by 2020 …, ” Lindsey told the crowd.
So, what is a community school? According to the Coalition for Community Schools, it’s one that’s built on partnerships between the school and community groups.
A district’s best teachers work there and the school offers extra social services, like mental health counseling. There’s also more parent involvement and the school doesn’t automatically suspend students who act up.
The Dallas school district has worked to stabilize Dade by adding higher-paid and more experienced teachers. Texas Organizing Project and others involved in community school reform, however, envision a broader effort.
“At a community school, you would have 100 or 200 folks participate in some way or another in that planning process,” said Allison Brim, organizing director for the Texas Organizing Project. “You get real buy-in and also input from a larger group of parents and teachers at the school and students as well to make sure that we’re really addressing all of the needs of the entire school community.”
For the past school year, Brim and other members have been meeting with parents, Dade’s principal and district staff to talk about turning the school around. They’ve hosted several community dinners in South Dallas. And, Brim has sent school board president Eric Cowan a letter asking him to consider the issue at a future board meeting.
Brim says she sees some progress at Dade.
“I would say while it’s still not officially our standard that we’re working toward in terms of a community school, a lot of the foundation has been laid," Brim said. "And there’s been huge improvement in terms of the academics and a lot of the key indicators at the school as a result," Brim said.
Advocates point to progress with community schools in places like Cincinnati and Los Angeles.
Last month, The Center for Popular Democracy released a report citing two schools in Austin that went from facing closure to becoming two of the district’s highest-performing schools.
At one of the Austin schools – Webb Middle School – enrollment, attendance and the graduation rate went up. The school now has a full-time community school coordinator and a family resource center that offers parenting classes.
Dallas school trustee Miguel Solis said he’d like the board to consider adopting the community school model or some variation of it.
“That’s not to say that the model will be 100 percent effective if it is implemented the exact same way in Dallas as it is in these other school districts,” he said. “But the principles and tenets of the model are, I think, perfect for our community and particularly the areas that are the most underserved and need the most support.”
Even if the Dallas school board takes up the issue sometime soon, Solis said turning Dade or other schools into community schools wouldn’t happen overnight.
“What the board is likely to do is at some point just have a better understanding of exactly what a community school is, what the goals of community schools are … ” Solis said.
In other words, when it comes to making a commitment about community schools, Dallas school trustees will want to do their homework first.
This story is part of KERA’s American Graduate initiative.
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Facebook Founder Gives $20mm Donation On Hillary To Defeat Trump's "Fear And Hostility" Campaign
Facebook Founder Gives $20mm Donation On Hillary To Defeat Trump's "Fear And Hostility" Campaign
A few weeks back we noted how Bullard had questioned the intentions of ex-Facebook founder Dustin Moskovitz in funding...
A few weeks back we noted how Bullard had questioned the intentions of ex-Facebook founder Dustin Moskovitz in funding the Center for Popular Democracy's Fed Up campaign (see "Why Is Facebook Funding "Anti-Fed" Activists"). The "Fed Up" group has mounted an aggressive effort to convince the Fed to keep rates ultra low noting they favor central banking policies that "are aimed at making sure lower income households and minorities share in the recovery to the same degree as the well off."
Ironically, Moskovitz, and his inflated FaceBook shares, are among the key beneficiaries of "ultra low rates" and not so much the poor and struggling people of this country. A fact that was not lost on St. Louis Fed president James Bullard. Per our previous post:
When it comes to Fed Up, "it's Facebook money," Bullard said. "I think it's kind of a funny thing for them to fund because they want low interest rates in an era where we are awash in low interest rates, so it's kind of crazy, isn't it?"
"I think that Dustin Moskovitz should be here, maybe he can helicopter in from Sun Valley or something instead of sending all these people, if he wants low interest rates. He could just come and argue about it," Mr. Bullard said.
Just a few short weeks later we now learn that the billionaire techie, and former college roommate of Mark Zuckerberg, is set to become one of the largest donors to the Democratic Party. According to CNN, Moskovitz will donate a total of $20 million to various Democratic organizations making him the 3rd most generous donor of this election cycle. But Moskovitz, at least if taken at his word, isn't really donating to elect Hillary as much as to defeat Trump saying that he wants to teach Republicans a lesson that by "supporting this kind of candidate, they compel people to act in response."
"This decision was not easy, particularly because we have reservations about anyone using large amounts of money to influence elections," Moskovitz and his wife, Cari Tuna, wrote in a post on Medium. "We hope these efforts make it a little more likely that Secretary Clinton is able to pursue the agenda she's outlined, and serve as a signal to the Republican Party that by running this kind of campaign - one built on fear and hostility?—?and supporting this kind of candidate, they compel people to act in response."
"Cari and I have dedicated our lives to figuring out how to do the most good we can with the resources we've been given. Until now, those efforts have not included making endorsements or contributions in presidential elections," Moskovitz wrote. "The Republican Party, and Donald Trump in particular, is running on a zero-sum vision, stressing a false contest between their constituency and the rest of the world."
But perhaps Moskovitz is less concerned about Trump spreading "fear and hostility" and more concerned about his recent comments suggesting that the only thing the Fed has created with "ultra low rates" is a "strong artificial stock market." Per CNN,
"They're keeping rates down because they don't want everything else to go down," the Republican presidential nominee told Reuters on Monday.
Trump said the "only thing that is strong is the artificial stock market."
"We have a very false economy," Trump told Reuters. "At some point the rates are going to have to change."
Sounds like someone is a little worried about bubbly tech markets?
By Tyler Durden
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Five Long Island nonprofits to share $70,000 in grants
Five Long Island nonprofits to share $70,000 in grants
Five Long Island nonprofits concerned with progressive social change were awarded funding by the Long Island Unitarian...
Five Long Island nonprofits concerned with progressive social change were awarded funding by the Long Island Unitarian Universalist Fund, which doled out $70,000 in its first round of grants for 2017. Three organizations received $15,000 apiece. These are the Center for Popular Democracy, which will use its award to organize elected officials on Long Island around progressive public policy solutions. The Child Care Council of Suffolk’s award has been earmarked for a graduate coalition for parents who have completed parent leadership initiative training, while the Pulse Center for Patient Safety and Advocacy will use its $15,000 award to train and empower African-Americans to advocate for better medical care.
Read full story here.
It’s Not Just Low Pay Stressing Out Part-Time Workers
Bill Moyers - July 24, 2014, by Neha Tara Mehta - Besides struggling to make ends meet because of low wages, millions...
Bill Moyers - July 24, 2014, by Neha Tara Mehta - Besides struggling to make ends meet because of low wages, millions of part-time workers in America also face uncertainty over when they will be called in to work. Irregular schedules and last-minute notice make it hard for these workers to find other work, go to school and make arrangements for child care or caring for aging parents.
As The New York Times reported last week:
About 27.4 million Americans work part time. The number of those part-timers who would prefer to work full time has nearly doubled since 2007, to 7.5 million. According to Bureau of Labor Statistics data, 47 percent of part-time hourly workers ages 26 to 32 receive a week or less of advance notice for their schedule.
In a study of the data, two University of Chicago professors found that employers dictated the work schedules for about half of young adults, without their input. For part-time workers, schedules on average fluctuated from 17 to 28 hours a week.
“Frontline managers face pressure to keep costs down, but they really don’t have much control over wages or benefits,” said Susan J. Lambert, a University of Chicago professor who interpreted the data. “What they have control over is employee hours.”
According to the National Women’s Law Center, food service workers experience a 70 percent average variation of work hours every month. For retail workers, the variation is 50 percent and for janitors and housekeepers, it’s 40 percent.
Lawmakers across the country are beginning to notice how irregular schedules complicate the lives of part-time workers, and are taking measures to address the problem. Employees of federal agencies now have the right to request work schedule flexibilities. Workers in San Francisco and Vermont can ask for a more flexible or predictable work schedule. In a report released in June, New York City comptroller Scott M. Stringer made a case for a legislation that would give employees the chance to make such requests “without fear of reprisal.”
Congress is swinging into action on this issue as well. On Tuesday, Representatives George Miller and Rosa DeLauro introduced the Schedules That Work Act. Miller admits that the bill may meet with opposition, but thinks that it will highlight “often callous scheduling practices.”
The Guardian reports that another version of the bill is brewing in the Senate:
Senators Tom Harkin and Elizabeth Warren are co-sponsoring of the Senate’s version of the bill. Carrie Gleason, co-founder of Retail Action Project, said [that] Warren will introduce the Senate version in upcoming weeks.
A single mom working two jobs should know if her hours are being canceled before she arranges for daycare and drives halfway across town to show up at work,” said Warren. “This is about some basic fairness in work scheduling so that both employees and employers have more certainty and can get the job done.”
Although some businesses are saying the bills would represent government overreach, the clothing store Zara has already promised to start giving its part-time employees two weeks notice on their work schedules.
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