As Federal Reserve Selects New Top Officials, Coalition Calls for Public Input
New York Times - November 10, 2014, by Binyamin Appelbaum - A coalition of community groups and labor unions wants the...
New York Times - November 10, 2014, by Binyamin Appelbaum - A coalition of community groups and labor unions wants the Federal Reserve to change the way some Fed officials are appointed, criticizing the existing process as secretive, undemocratic and dominated by banks and other large corporations.
In letters sent to Fed officials last week, the coalition called for the central bank to let the public participate in choosing new presidents for the regional reserve banks in Philadelphia and Dallas. The current heads of both banks plan to step down in the first half of 2015.
The Fed’s chairwoman, Janet L. Yellen, has agreed to meet on Friday with about three dozen representatives of the groups to hear their concerns.
“The Federal Reserve has huge influence over the number of people who have jobs, over our wages, over the number of hours that we get to work, and yet we don’t have discussion and engagement over what Fed policy should be,” said Ady Barkan, a lawyer with the Center for Popular Democracy, a Brooklyn-based advocacy group that is orchestrating the campaigns. “More people’s voices need to be heard.”
A spokeswoman for Ms. Yellen confirmed the meeting but declined to comment on the issues raised by the groups.
The Philadelphia Fed said in an email that the institution “is conducting a broad search for its next president and will consider a diverse group of candidates from inside and outside the Federal Reserve System.”
James Hoard, a spokesman for the Dallas Fed, said the bank’s board would meet on Thursday to discuss the search process.
The campaign is part of a broader increase in political pressure on the Fed, which is engaged in a long-running campaign to stimulate the economy that some liberals regard as insufficient and some conservatives see as both ineffective and dangerous. Mr. Barkan led a picket line in support of the Fed’s efforts in August outside the annual monetary policy conference at Jackson Hole, Wyo.
House Republicans, meanwhile, have passed legislation that seeks to reduce the Fed’s flexibility in responding to economic downturns, arguing that such efforts are destabilizing.
The Fed acts like a monolith, but it has a complicated skeleton. Most power rests with a board of governors in Washington, who are nominated by the president and confirmed by the Senate. But operations are conducted through 12 regional banks, each of which selects its own president. And those presidents rotate among themselves five of the 12 seats on the Federal Open Market Committee, which sets monetary policy.
The two presidents who have said they plan to step down are, by coincidence, among the most outspoken internal critics of the Fed’s campaign to stimulate the economy. Charles I. Plosser, president of the Philadelphia Fed since 2006, plans to retire at the end of March. Richard W. Fisher, president of the Dallas Fed since 2005, is required to step down by the end of April, though he has not set a date.
Their replacements will be selected by the board of each reserve bank. Each board has nine members, including three bankers, but under the 2010 Dodd-Frank Act, only the nonbank members can participate in the process. The banks in each reserve district, however, still elect three of those six nonbank members. The other three, including the chairman and vice chairman, are appointed by the Fed board in Washington.
By law, the boards are supposed to represent a diverse set of viewpoints, including “labor and consumers.” But the 72 nonbank board members are predominantly corporate executives. Just eight are leaders of community groups; two more are leaders of labor groups.
Corporate executives exclusively make up the boards of the St. Louis and Richmond regional banks. The Dallas Fed’s board includes the presidents of the Houston Endowment — a charitable organization — and the University of Houston. The Philadelphia Fed has five executives and the president of the University of Delaware.
“I look at that list and it doesn’t strike me that most of those folks are representing the public,” Kati Sipp, director of Pennsylvania Working Families, a nonprofit advocacy group that is one of the signatories of the recent letter, said of the Philadelphia Fed’s board. “We believe it is important for the people who are making economic policy to hear from the regular folks on the ground who are being affected by those decisions.”
The two dozen signatories also include the Pennsylvania AFL-CIO, New Jersey Communities United and W. Wilson Goode Jr., a Philadelphia city councilman. The letter asks for the Fed to disclose basic information about the selection process, including the timetable, criteria and, eventually, names of candidates. It also seeks search committee seats and opportunities to question the candidates publicly.
The selection process is secretive, but control has increasingly shifted from the regional banks to the board of governors. Beginning under the leadership of Alan Greenspan, a former Fed chairman, the central bank has sought presidents who can contribute to making monetary policy. The board provides informal guidance during the winnowing process, and candidates travel to Washington to meet with the governors.
As a result of that trend, 10 of the 12 sitting presidents are former Fed staffers, economists or both. Mr. Fisher, a former investor, is one exception. The other is Dennis P. Lockhart, a former banker who leads the Atlanta Fed — and is the next president who will reach retirement age.
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Poll Says Americans Want Fed To Focus On Jobs, Hold Off On Rate Increases
NEW YORK--As the Federal Reserve gets ready to debate its interest rate policy stance next week, a poll released...
NEW YORK--As the Federal Reserve gets ready to debate its interest rate policy stance next week, a poll released Thursday finds a strong majority of the American voters surveyed want central bankers to refrain from boosting short- term interest rates--and to instead concentrate on using monetary policy to further boost the job market.
The poll also found that respondents have inflation concerns, but even so, they still want the Fed to do what it can to create more jobs and spur the sort of wage gains that have eluded much of the nation. The poll of 716 registered voters also found respondents wanting greater public input into the central bank's decision making.
The survey was conducted in early September by Public Policy Polling under the direction of the left-leading Center for Popular Democracy. The group has been actively arguing against any move to raise short-term interest rates from current levels. Over recent months, its activists have been meeting with regional Fed bank president to press their case. The group also brought their case this year's high-profile central bank research conference in Jackson Hole, Wyo.
In the survey, 62% of respondents said high unemployment remains a "major problem," and 60% said low wages and weak incomes were also significant concerns. Half said the same thing about inflation. Just over half of respondents said the Fed should use its policy tools to prioritize job creation and stronger wage gains--versus 38% who want the central bank to direct its main focus to controlling inflation.
"There is no threat of inflation," said Connie Razza, Director of Strategic Research with the CDP. The poll shows Americans believe "the U.S. economy is not healthy enough to raise rates right now," she said in a conference call with reporters discussing the survey.
Nearly two-thirds of respondents believe the economy could benefit from maintaining low rates, and a similar amount want to see the current ultralow rates maintained.
The Fed is set to meet Wednesday and Thursday next week to decide what to do with its near-zero short-term interest rate target. Until only recently, there were fairly broad-based expectations that officials would raise rates at the meeting, ending an unprecedented era of ultralow rates that have prevailed since the end of 2008.
But a sharp rise in global uncertainty spurred by questions about growth in China, as well as the waves of market volatility this situation has unleashed, has undone any sense of certainty about what the Fed will do next week.
Steady if unspectacular growth coupled with a solid drop in the unemployment rate underpin the case to raise rates. Arguing against is persistently weak inflation and weak wage growth, with the Fed failing to achieve its price target for over three years. The Fed is legally charged with promoting job growth and stable inflation, and for many there is a conflict right now between the employment and inflation environments. That makes interest-rate decisions difficult for central bankers.
The poll also found dissatisfaction with the Fed's democratic accountability. Some 71% of respondents said the public doesn't have enough input into central-bank decision making. A majority of respondents believe the financial sector is overrepresented on regional Fed boards of directors.
The poll is unusual in that the public's attitude about the central bank is rarely measured. As important as the Fed is to the economy's performance, its mission and tools are often little understood by the broader public. For most of the Fed's history, its officials were happy operating in the shadows. But over recent years the Fed has become much more open about its aims and activities. Still, a Pew Research from last year found that only a quarter of Americans could even name Janet Yellen as chairwoman of the Fed.
"The focus on the Fed is extraordinary," Josh Bivens, director of Research and Policy at Economic Policy Institute, said on the conference call. The Fed "is the only engine we have for this recovery, and that's why it's getting all the attention," he said.
Source: Nasdaq
U.S. Department of Education Launches Crackdown on Ohio Charters
Charter Schools are defined by their freedom from regulation and oversight, but that freedom has been so regularly...
Charter Schools are defined by their freedom from regulation and oversight, but that freedom has been so regularly abused by unscrupulous operators that it seems the U.S. Department of Education is finally deciding to crack down, under pressure in this case from Ohio’s U.S. Senator Sherrod Brown.
Three months ago, on June 20, 2016, Senator Brown wrote a letter to John King, now U.S. Secretary of Education, demanding increased oversight of a large grant—$71 million—the federal Department of Education made to Ohio on September 28, 2015 to expand charter schools. The grant application had been written by David Hansen, who, by September, had already been fired by the Ohio Department of Education for hiding the abysmal academic record of the state’s so-called “dropout recovery schools” and omitting their scores from a system he was creating as the Ohio Department prepared to begin holding charter schools more accountable. Hansen had also bragged in his federal grant application that Ohio had already begun more aggressively regulating charters. After the U.S. Department of Education awarded Ohio the $71 million grant at the end of September 2015, however, it was pointed out that the Ohio legislature had not yet passed the regulations for which Hansen (in July) had given the state credit. (The Ohio Legislature later adopted the most basic and minimal charter school oversight when it passed Ohio House Bill 2 on October 7, 2015).
When Ohio Senator Brown wrote to U.S. Secretary John King in June, 2016, the $71 million Ohio grant had been put on hold for months, as the U.S. Department of Education investigated Ohio’s dealings with charter schools. In his June 20 letter, Senator Brown wrote:
“In your November 2015 response letter to the members of the Ohio Congressional delegation, you outlined a number of steps ED has taken and will continue to take to verify the accuracy and completeness of ODE’s grant application. I appreciate these steps, but more must be done to provide order to the state’s chaotic charter school sector. In light of this report, I ask that you examine the performance of Ohio charter schools who have received CSP (federal Charter Schools Program) grants to determine whether grant recipients are failing or closing at a higher rate than those in other states and how the academic performance of CSP grant recipients in Ohio compares to CSP grant recipients nationwide. I further ask that when Ohio has satisfied all necessary conditions for this grant money to be released that you appoint a special monitor to review every expenditure made pursuant to this grant in order to ensure that all funds are being spent for their intended purpose. Ohio’s current lack of oversight wastes taxpayer’s money and undermines the ostensible goal of charters: providing more high-quality educational opportunities for children. There exists a pattern of waste, fraud, and abuse that is far too common and requires extra scrutiny.”
Last Wednesday, September 14, 2016, the U.S. Department of Education finally released the $71 million grant, but, as Patrick O’Donnell reports for the Plain Dealer, there are now many conditions:
“In a letter to the Ohio Department of Education today, the grant was declared ‘high risk’ because of the poor academic performance of the state’s charters and the struggles the state has had in implementing portions of House Bill 2, the state’s charter reform bill passed last fall by the state legislature… The letter states: ‘As part of this high-risk designation, we are imposing certain High-Risk Special Conditions on ODE’s CSP (Charter Schools Program) SEA (State Education Agency) grant that will help ODE and the Department more clearly determine ODE’s ongoing compliance with applicable requirements’ so that it will be more transparent and so that any issues can be identified and fixed quickly.”
Here are the conditions as reported by O’Donnell:
• “(T)he state cannot give out grants to schools as it has in the past. It must have prior approval from the U.S. Department of Education before transferring any money.
• “The department must evaluate dropout recovery schools better.
• “The state must report its progress four times each year.
• “ODE must hire an independent monitor of the grant program.
• “The state must create a Grant Implementation Advisory Committee.
• “And it must do demanding ratings of the oversight agencies known as ‘sponsors’ in Ohio, but as ‘authorizers’ in most other states.”
Ohio’s problems with the controversial $71 million Charter Schools Program grant are not the first time anyone has noticed the federal Department of Education’s failure to oversee the Charter Schools Program. A year ago in June, 2015, the Alliance to Reclaim Our Schools—a coalition of national organizations including the American Federation of Teachers, Alliance for Educational Justice, Annenberg Institute for School Reform at Brown University, Center for Popular Democracy, Gamaliel, Journey for Justice Alliance, National Education Association, National Opportunity to Learn Campaign, and Service Employees International Union—sent a letter to then-Secretary of Education Arne Duncan complaining that while the Department had granted $1.7 billion to states for expansion of charter schools since 2009, the Department of Education’s own Inspector General had been raising alarms about the Department’s own lack of any kind of quality control.
The Alliance’s letter to Arne Duncan cited formal audits from 2010 and 2012 in which the Department of Education’s own Office of Inspector General (OIG), “raised concerns about transparency and competency in the administration of the federal Charter Schools Program.” The OIG’s 2012 audit, the members of the Alliance explain, discovered that the Department of Education’s Office of Innovation and Improvement, which administers the Charter Schools Program, and the State Education Agencies, which disburse the majority of the federal funds, are ill equipped to keep adequate records or put in place even minimal oversight. The State Education Agencies that lack capacity to manage the programs are the 50 state departments of education.
In the June 2015 letter to Arne Duncan, the Alliance to Reclaim Our Schools enumerates the problems discovered by the Department of Education’s own Office of Inspector General: that the Office of Innovation and Improvement (OII) did not maintain records of the charter schools funded through grants to states, that OII “lacked internal controls and adequate training in fiscal and program monitoring,” that none of the three states selected as samples for investigation by the Office of Inspector General—Arizona, California, and Florida—sufficiently monitored the charter schools funded through the Department of Education’s State Education Agency grants, that 26 charter schools in these three states were shown by the Office of Inspector General to have closed after being awarded $7 million, and that even when the schools closed, nobody tracked “what happened to assets that had been purchased with federal funds.”
Thank you, Senator Sherrod Brown for doggedly demanding that the U.S. Department of Education improve oversight of the federal Charter Schools Program. Please keep on keeping on.
By Jan Resseger
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Protesters Call on Harvard to Divest from Puerto Rican Debt
Protesters Call on Harvard to Divest from Puerto Rican Debt
“We know that Harvard is a large university with a big endowment, and it can set a tone for how higher education...
“We know that Harvard is a large university with a big endowment, and it can set a tone for how higher education universities invest,” protest organizer Julio Lopez Varona said. “It could make investments that are moral and not hurt anybody.”
Read the full article here.
Gap Inc. to end on-call scheduling after inquiry by New York attorney general
A spokeswoman for the San Francisco-based retailer said Thursday the decision also applies to Gap's other brands,...
A spokeswoman for the San Francisco-based retailer said Thursday the decision also applies to Gap's other brands, including Banana Republic, Old Navy and Athleta and was part of an effort to "improve scheduling stability and flexibility" for workers.
Spokeswoman Laura Wilkinson said the change will apply "across our global organization" and will be fully implemented by the end of this month. Wilkinson said the company is working to establish scheduling systems giving store employees at least 10 to 14 days' notice.
Attorney General Eric Schneiderman's office sent letters to Gap and 12 other retailers earlier this year questioning them about on-call scheduling, which required hourly workers to stay on-call for shifts set the night before or the same day, giving them little time to arrange for child care or work other jobs.
"Workers deserve stable and reliable work schedules, and I commend Gap for taking an important step to make their employees' schedules fairer and more predictable," said Schneiderman, a Democrat.
Abercrombie & Fitch also ended the practice this month.
Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, said in a statement that Gap's decision reflects not only Schneiderman's concerns but also a new ordinance in San Francisco requiring chain retailers to set schedules in advance. Similar proposals are pending before other city governments.
"Working people in hourly jobs are starting to speak out about the impact that employers' scheduling practices has on their lives," Gleason said in a statement.
Source: US News & World Report
Wall Street Stands to Make a Killing From Building Trump's Border Wall: Report
Wall Street Stands to Make a Killing From Building Trump's Border Wall: Report
"It’s always been clear that Trump’s border wall had no real benefit or justification—and now it’s clear that it could...
"It’s always been clear that Trump’s border wall had no real benefit or justification—and now it’s clear that it could serve to further enrich his wealthy friends,” said Ana Maria Archila, co-executive director of the Center for Popular Democracy, in a statement announcing the report.
Read the full article here.
I confronted Jeff Flake over Brett Kavanaugh. Survivors like me won't stand for injustice.
I confronted Jeff Flake over Brett Kavanaugh. Survivors like me won't stand for injustice.
I began my week in tears, as I stood in front of Sen. Jeff Flake’s office to tell my story of sexual assault for the...
I began my week in tears, as I stood in front of Sen. Jeff Flake’s office to tell my story of sexual assault for the first time. I ended my week in rage after learning that Flake, R-Ariz., would vote to confirm Brett Kavanaugh to the Supreme Court of the United States.
Read the article and watch the video here.
Dems rally for same-day voter registration
Democrats rallied at Legislative Hall on Tuesday in favor of legislation that would allow Delawareans to register to...
Democrats rallied at Legislative Hall on Tuesday in favor of legislation that would allow Delawareans to register to vote on the same day as a primary or general election.
"We should so everything we can to make sure eligible others have every opportunity to exercise their constitutional right to vote," said Rep. John Viola, D-Newark, the legislation's sponsor.
Democrats and activists supporting the bill dismissed concerns that same-day registration could lead to voter fraud.
"There's nothing there," Viola said, adding that he feels "confident" the bill will pass the House in the "next couple weeks."
The bill was voted out of committee in May, and would still need to go to the Senate for committee and floor votes if it passes the House. Delaware's current registration deadline is the fourth Saturday prior to an election.
Rep. John Kowalko, a Newark Democrat, told supporters gathered outside Legislative Hall on Tuesday that "you deserve the right to vote" and said the measure only reinforces the constitutional rights of Delawareans. Rep. Paul Baumbach, D-Newark, called the legislation "as American as it gets."
Representatives from several left-leaning advocacy groups attended the rally in support of the legislation on Tuesday, including the Delaware Alliance for Community Advancement and American for Democratic Action.
Same-day registration is already law in 11 states and the District of Columbia, according to the National Conference of State Legislatures.
Mike Begatto, executive director of the American Federation of State County and Municipal Employees, the public employees union, also spoke in favor of the bill on Tuesday. Sen. Margaret Rose Henry, a Wilmington Democrat, is sponsoring the measure in the Senate.
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Immigration Reform News: Letter to Obama Calls For End of Immigrant, Family Detention
Latin Post 05-12-2015 - A coalition of national organizations, ranging from Latino-based, faith-based and law-based...
"In light of recent developments and ongoing negotiations in litigation on the detention of immigrant families, we, the undersigned 188 immigrants' rights, faith-based, civil rights, human rights, survivors' rights, and criminal justice reform organizations, international educators, and legal service providers, urge your administration to end the practice of family detention," starts the letter, signed by organizations including the League of United Latin American Citizens (LULAC), American Immigration Lawyers Association, Center for Popular Democracy, Detention Watch Network, DREAM Action Coalition, National Council of La Raza and We Belong Together.
The letter acknowledges the family detention centers built in the last year in Berks County, Penn., and Dilley and Karnes counties in Texas. The organizations also recognized that the detained families are largely seeking protection in the U.S., but such centers have had "traumatic impact" on families, notably children. The traumatic impacts may include an individual or families' experience while in Central America.
ADVERTISEMENT"These mental health effects are compounded where families have suffered detention that is prolonged and indefinite in nature," the letter continued. "A growing number of members of Congress have voiced their opposition to the detention of families, and a steady stream of news articles and human rights reports illustrate that families cannot be detained humanely."
The letter reference the lawsuit and human rights reports at the T. Don Hutto Detention Center in Texas, which the U.S. Department of Homeland Security closed in 2009 following inquiries of the facility's procedures. Lawsuits regarding other immigrant detention facilities' policies have also been filed and could result in the centers shutdown.
"DHS has broad authority to release from detention vulnerable populations who do not pose a flight or public safety risk either on recognizance or, where necessary, with additional measures such as alternatives to detention," wrote the 188 organizations. "These should include case management services to ensure that families are informed of their legal rights and obligations and receive appropriate referrals to social and legal services."
The organizations agreed that all immigrant families must receive full due process. The letter to Obama called for all families to have their right to full hearings before an immigration court judge -- as outlined in section 240 of the Immigration and Nationality Act.
Calls for an "alternative to detention," or ATD, instead of detention was recommended. The national, state and local organizations in the letter noted families apprehended at the border "generally" have relations or community relations in the U.S. and could be released while awaiting deportation hearings.
"In fact, Immigration and Customs Enforcement (ICE) recently issued a Request for Proposals specifically for case management ATD programs appropriate for families. As detailed in your FY 2016 budget request, current ATD programs save taxpayer dollars, costing approximately $5 per day compared to $343 per day for a family detention bed. Current ATDs have high compliance rates, with 99 percent appearance at immigration court hearings and 84 percent compliance with removal orders."
Local-and-state-based organizations signing on the letter include the Central American Resource Center, Coalition of Latino Leaders, Families for Freedom, New York Immigration Coalition and Workers Defense Project.
To read the letter to President Obama and the list of organizations signed, click here
Source: Latin Post
Juan González On De Blasio's NY: The Mayor Has Not Confronted The Affordable Housing Crisis
Juan González On De Blasio's NY: The Mayor Has Not Confronted The Affordable Housing Crisis
For nearly 30 years, Juan González used his column in the New York Daily News to expose massive corruption scandals and...
For nearly 30 years, Juan González used his column in the New York Daily News to expose massive corruption scandals and further the cause of social justice. He retired his column last year, but has continued his work at Democracy Now! and as a journalism professor at Rutgers. In his new book, Reclaiming Gotham: Bill de Blasio and the Movement to End America's Tale of Two Cities, González argues that Mayor de Blasio, who is likely to win a second term, is the leader of a nationwide movement for progressives to take back municipal government, and recently wrote that de Blasio has presided over a $21 billion infusion of progressive benefitstargeted at the New Yorkers who need it most.
We spoke with González about Mayor de Blasio's first term, how he fits into the progressive movement nationwide, and whether the mayor is doing enough to fulfill his initial campaign promise to end the tale of two cities.
Read the full article here.
6 days ago
6 days ago