Divest From Prisons, Invest in People-What Justice for Black Lives Really Looks Like
Divest From Prisons, Invest in People-What Justice for Black Lives Really Looks Like
Stahly-Butts, a facilitator of the Cleveland convening and deputy director of racial justice at the Center for Popular...
Stahly-Butts, a facilitator of the Cleveland convening and deputy director of racial justice at the Center for Popular Democracy, explains that our current criminal justice system is based on a premise of comfort, rather than safety: Instead of addressing the roots of uncomfortable issues such as drug addiction, mental illness, and poverty, we’ve come to accept policing and incarceration as catch-all solutions. This disproportionately affects African Americans.
Read the article here.
Fed Draws on Academia, Goldman for Recent Appointees
Fed Draws on Academia, Goldman for Recent Appointees
When the Federal Reserve was established, Congress called for its policy makers to have “fair representation of the...
When the Federal Reserve was established, Congress called for its policy makers to have “fair representation of the financial, agricultural, industrial, and commercial interests, and geographical divisions of the country.”
But Fed officials have recently been drawn from just two backgrounds—academics, either at universities or Fed research departments, and alumni of the financial services firmGoldman Sachs & Co.
The announcement Tuesday that Neel Kashkari would become president of the Federal Reserve Bank of Minneapolis marked the third Goldman Sachs alumnus in a row to be picked to become a Fed bank president. The other two—Dallas’s Robert Steven Kaplan andPhiladelphia’s Patrick Harker —took office earlier this year.
Mr. Kashkari is a former investment banker at Goldman Sachs and a former Treasury official who ran the government’s Troubled Asset Relief Program (TARP) during the financial crisis. He takes the helm of the Minneapolis Fed Jan. 1, 2016.
Of the 17 Fed officials in office next year—five members of the Board of Governors and 12 regional bank presidents—all but three will have professional backgrounds as academics or with Goldman Sachs. The exceptions will be Atlanta Fed President Dennis Lockhartand Fed governor Jerome Powell, who worked at other banking institutions, and Kansas City Fed President Esther George, who was primarily a bank supervisor.
“The obvious downside of this is there’s more of a groupthink within the Fed,” said George Selgin, the director of the Center for Monetary and Financial Alternatives at the Cato Institute, a libertarian-leaning think tank, referring to the shift toward a narrow range of backgrounds at the central bank. “That can be very dangerous if the groupthink is based on ways of thinking about the economy that are not necessarily sound.”
Mr. Kaplan, a former Harvard Business School professor, had worked as a vice chairman of Goldman Sachs Group Inc., leading investment banking activities. Mr. Harker, the former president of the University of Delaware, served as a trustee of Goldman Sachs Trust and its Variable Insurance Trust.
New York Fed President William Dudley also spent most of his career at Goldman, ultimately serving as its chief economist.
Since the central bank’s founding a century ago, the background of Fed officials has undergone a dramatic shift.
In the early days after the Fed began in 1913, the people selected to run the nation’s central bank were primarily small bankers, reflecting that in the early days, the Fed’s key function was providing banking services to a highly fragmented banking industry. The notion of using Fed policies to steer the broader economy had not yet taken hold.
Through the Fed’s first 40 years, the backgrounds of officials grew increasingly diverse. In the late 1940s, for example, Fed officials included Chester Davis, a former agriculture commissioner and grain marketer; Laurence Whittemore, of the Boston and Maine Railroad and H. Gavin Leedy, a private practice attorney.
The central bank’s leadership also contained many functionaries who rose through the ranks as Fed administrators, such as Robert Gilbert, who in his 20s become one of the first 14 employees of the Dallas Fed. He worked as a loan and discount clerk and in the war loan department, before becoming manger of the Dallas Fed’s El Paso branch and eventually the Dallas Fed President.
Such quaint backgrounds were common among officials in the central bank’s early days but were beginning to dwindle by the 1960s. Today Fed officials who rose through the ranks are almost entirely Ph.D. economists who headed the regional banks’ research departments; the lone exception is Ms. George, who worked as a bank supervisor and Kansas City Fed administrator. Ms. George holds an M.B.A.
Gradually backgrounds in industry, law, and other aspects of government or administration fell out of favor.
“Keep in mind, for much of the Fed’s first half, the focus was really on financial stability,” said Sarah Binder, a George Washington University professor who is also a senior fellow at the Brookings Institution, a Washington think tank. “There wasn’t a well-worked out body of knowledge about monetary policy.”
As it became apparent that Fed policy held vast sway over the economic fortunes of the country, presidents and regional Fed boards increasingly turned to Ph.D. economists to guide the central bank and to be effective participants during the debates of the policy-making Federal Open Market Committee.
Ms. Binder thinks the narrow range of backgrounds among Fed officials may lead to a central bank that is thin on expertise when it comes to “the responsibilities that are laid on top of the board, in particular, that extend beyond monetary policy.”
The central bank is tasked, for example, with regulating much of the financial system, not only the giant Wall Street banks, but also community banks, insurers and other financial institutions. The Fed retains some responsibilities for consumer protection and community development, is responsible for the nation’s payment systems and continues to operate the discount window and other low-profile back-office banking functions.
Liberal activist groups, led by the Center for Popular Democracy, have pushed for diversity in the appointment of new Fed officials, pressing for representatives of workers and consumers or labor and community leaders. They have had no luck, and with the filling of the Minneapolis Fed presidency and inaction in Congress over two current nominees to the Fed board, there are no looming vacancies for the central bank’s composition to begin a shift.
Source: The Wall Street Journal
“These Disasters Aren’t Natural Anymore”: A Dispatch from Puerto Rico After Maria
“These Disasters Aren’t Natural Anymore”: A Dispatch from Puerto Rico After Maria
Several weeks ago, Puerto Rico avoided a direct hit from Hurricane Irma, which shifted north at the last minute. But...
Several weeks ago, Puerto Rico avoided a direct hit from Hurricane Irma, which shifted north at the last minute. But Hurricane Maria hit head on, and has left a humanitarian crisis in its wake. Power on the island could be out for as long as six months, and many parts of the island have yet to be contacted.
Read the full article here.
Liberals turn to Fed in populist push
Left-leaning groups and lawmakers are taking their populist economic fight to the Federal Reserve, as they seek to...
Left-leaning groups and lawmakers are taking their populist economic fight to the Federal Reserve, as they seek to exert new influence over key monetary decisions and a pair of vacancies at the central bank.
The Fed has faced heavy criticism from the right for years, but the other side of the aisle is now beginning to publicly push the institution for preferred policies. With Congress and the White House seemingly set to butt heads for the next two years, left-leaning community and labor groups are turning to the Fed in an attempt to get an economic policy boost for middle- and working-class Americans.
“In the face of the fiscal side not being really a realistic option to promote an economic recovery, the most important economic policymaker in the United States is the Federal Reserve,” said Shawn Sebastian, policy advocate for the Center for Popular Democracy.
And after successfully driving President Obama to nominate Janet Yellen to lead the Fed, some Senate Democrats are again pressing the administration about openings at the central bank. Sens. Elizabeth Warren (D-Mass.) and Joe Manchin (D-W.Va.) are vocally calling on Obama to nominate tough-nosed Wall Street watchdogs to fill out two board spots that often are filled by academics or economists.
The resurgence of left-leaning interest in the Fed’s operations further complicates the bank’s efforts to remain above the political fray. The Fed has weathered years of criticism from the right, which argues its unprecedented foray into monetary stimulus after the recession was a recipe for disaster.But now, with the Fed preparing to finally dial back years’ worth of quantitative easing, it’s the other side that is airing concerns. This time, the worry is that the Fed could tighten policy too quickly, even as millions of Americans still are looking for work or grappling with stagnant paychecks.
“I have been concerned for some time that when the Federal Reserve began to tighten policy that they would be subject to considerable pressure from people who don’t want them to do that,” said Donald Kohn, a former Fed vice chairman now with the Brookings Institution.
A host of left-leaning groups, including the AFL-CIO and the Economic Policy Institute, have joined forces to take a populist message directly to the Fed. The groups have protested a central bank powwow in Jackson Hole, Wyo., and have held public protests outside the institution’s headquarters in Washington.
The leftward push on the Fed follows those groups notching a major victory at the central bank in 2013. With Obama reportedly favoring economic adviser Lawrence Summers to replace the outgoing Ben Bernanke as head of the Fed, Democrats on and off Capitol Hill embarked on a concerted campaign to get Yellen nominated for the top job instead.
Democratic lawmakers took the rare step of publicly advocating for Yellen, then the Fed’s vice chairwoman, before a nomination was made, effectively announcing opposition to Summers in the process. Though Obama defended Summers in public, he ultimately deferred to that pressure and nominated Yellen for the job.
Now, Warren and Manchin are hoping to exert more influence, calling on Obama to fill two openings at the seven-member board with tough supervisors who “have a demonstrated commitment to not backing down when they find problems.”
Fed governors are given a 14-year term, so if those two find success on that front, the end result could be a considerable shift in how the central bank operates as a financial regulator. And any new voices would likely receive an open hearing from Yellen, whose background is as an economist, not a regulator.
“My impression is that Chair Yellen is running the system by consensus in a considerable way, she consults widely,” said Kohn.
Since taking the job, Yellen has made a concerted effort to place the Fed’s deliberations within the context of the working class. One of her first acts as the Fed’s new leader was to address at a Chicago event how the central bank hoped to boost jobs, and she has agreed to meet with left-leaning protestors to hear their concerns.
But Yellen’s openness to those new voices is leaving some unsettled.
“There’s a trend here that’s pretty clear and pretty concerning,” said Steven Lonegan, director of monetary policy at American Principles in Action, which advocates for tighter Fed policy, including a return to the gold standard.
“You can’t start manipulating the value of our money because you have a specific political agenda,” he added.
But these new advocates argue the Fed has always been subject to politics. Sebastian argued that Fed officials and those that track Fed policy skew heavily from corporate and banking interests, leaving a “Main Street” voice out of the picture.
“Every person carries political baggage,” he said. “All we’re trying to do is have that conversation reflect reality.”
But even the people behind the new leftward push on the Fed acknowledge advocacy of the publicly mysterious institution is somewhat novel. Conservative criticism of the Fed has been around for years, first helmed by former Rep. Ron Paul (R-Texas), but a more liberal effort for influence has not been seen in decades.
“This is a new space for us,” said Sebastian. “We don’t know what the effect of this type of engagement will be.”
Source: The Hill
The charter school movement needs greater accountability
A recent study published by the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “...
A recent study published by the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” found $203 million lost to fraud, corruption and mismanagement in charter schools, with a projected $1.4 billion in losses in 2015 alone. The Federal Bureau of Investigation is concerned as well: It has investigated schools in Pennsylvania, Louisiana, Connecticut, Arizona, Ohio, Massachusetts, Indiana and Illinois.
Brown University’s Annenberg Institute for School Reform released a report detailing the standards that should be required to raise the charter sector to the level of equity and transparency that public schools must meet. Such reforms are popular: A 2015 poll showed that 89 percent of respondents favored making charter board meetings publicly accessible, 88 percent supported routine audits of their finances and 86 percent desired transparent budgets.
Whether or not one thinks that charter schools are a good thing, we should be able to agree that greater accountability strengthens our school system. However, many charter advocates have stood in the way of reform.
In California, four long-overdue bills that would bring a higher level of accountability to the state’s 1,100 charter schools were introduced last March. A 2015 report from the Center for Popular Democracy documented how charter schools in California have lost $81 million in public funds to fraud and abuse. Over the last 10 years California’s Fiscal Crisis & Management Assistance Team revealed multi-million dollar scams in Los Angeles, Oakland and Santa Ana, to name a few cities, as well as rampant abuse in what was the state’s largest charter operator.
Instead of supporting common-sense reform, the state’s charter industry, represented by the California Charter School Association, has fiercely opposed the bills. “We believe current laws address these concerns and these proposals are unnecessary,” the lobbying group wrote in a press release.
California, the state with the largest number of charter schools, should lead the way for reform. But progress is slow going: There is little indication that any of the bills will make progress in Sacramento this year.
In Connecticut, it took a scandal to spur this kind of reform. A 2014 study from the National Association of Charter School Authorizers ranked Connecticut as the seventh-lowest state with regard to charter accountability. In response, the state passed a law in July that makes all charter school records a matter of public record subject to the Freedom of Information Act. It also requires charter schools to have anti-nepotism and conflict of interest policies, and it empowers the state’s Department of Education to post each school’s certified audit statement on its website.
The reform was spurred by a massive scandal around a prominent charter school figure named Michael Sharpe. For years Sharpe led a chain of schools called the Jumoke Academy and advocated for unfettered charter expansion. Yet, in early 2015, in the midst of an FBI investigation and after more than six months of relentless investigative reporting by the Hartford Courant, Connecticut’s Department of Education found Sharpe’s network riddled with “rampant nepotism.” Its report also revealed that Sharpe had ordered “expensive and ornate modifications” to an apartment owned by his company, which he then rented for his own use.
In the aftermath of these revelations, Connecticut’s reform law was approved in May by a 35 to 1 vote in the state Senate and 142 to 3 in the state Assembly. While this is a positive development, other states should not have to wait for a scandal of this magnitude before demanding greater accountability.
Charter reform can be a bipartisan cause. In Ohio, Republican State Senator Peggy Lehner began pushing for laws to require greater disclosure of how public funds are spent after, she says, seeing “story after story” about charter school scandals. A recent investigation by the Akron Beacon Journal found that of the 300 charter schools reporters contacted, only a fourth provided basic information like board members’ names. Meanwhile, 87 percent of charters got Ds or Fs on the most recent state report cards.
Major charter advocates spoke to the need for reform. “Charter schools are public schools, and there should not be a veil of secrecy,” said Chad Aldis, vice president for the Thomas B. Fordham Institute, which sponsors 11 charter schools in the state. “We need to have transparency.”
In June, a bill that passed the state Senate that would require Ohio to annually audit all charter school operators to monitor the use of public funds. Charter schools would also have to obey open records laws and other transparency standards that are already the norm in public schools.
Such changes should be no-brainers. And yet the bill has stalled in the General Assembly. With much of the debate going on behind closed doors, the public has thus far not been able to get a clear sense for the cause of the delay.
Sunshine advocates fear that the inaction of the Ohio House bodes ill for the bill’s future. “It appears that the poor-performing charter school sector has again won the day,” argues Stephen Dyer, former legislator and Education Policy Fellow at the progressive think tank Innovation Ohio.
Rather than standing in the way of greater accountability, lawmakers should view the current bill as a first step. Not only should the measures be passed, they should be strengthened. Communications and overhead costs would not have to be disclosed under the state Senate’s bill, casualties of the charter industry’s lobbying.
Moreover, Ohio’s bizarre system of charter approval would remain largely unchanged under the bill. Instead of having a few authorizing agencies to approve charter schools, Ohio allows dozens of groups, including non-profits, to sponsor and approve charter schools. These authorizers receive payments from the schools and rarely close them as a result.
The public deserves better — in Ohio and beyond. If charter schools are to become a permanent and respected part of public education in America, their champions will need to clean up their sector and let the sunshine in.
Source: Al Jazeera America
De Blasio and Mayors of Chicago, Los Angeles Launch Initiative to Help Immigrants Become U.S. Citizens
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new...
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new initiative to push for eligible immigrants to become U.S. citizens in the nation's three largest cities.
"Cities for Citizenship" aims to increase naturalization programs and other efforts to help immigrants in New York City, Chicago and Los Angeles.
"This win-win effort will help us create more inclusive cities that lift up everyone," de Blasio said in a statement announcing the initiative. "From increased economic activity to larger voting and tax bases, the advantages of citizenship will not only expand opportunity to our immigrant families, but to all New Yorkers and residents nationwide."
The de Blasio administration said increasing immigrant access to citizenship will help fight poverty and estimated that naturalizing 684,000 legal permanent residents will add up to $4.1 billion to the city's economy over a decade.
In a report released Wednesday, the Center for Popular Democracy estimated that there are about 750,000 legal permanent residents eligible for naturalization.
Citigroup, a corporate partner of the initiative, will contribute $1.15 million for the new initiative.
New York City will use funds for NYCitizenship, a coordinated effort to connect low- and moderate-income New Yorkers to free legal assistance during the naturalization process. NYCitizenship works with city agencies to connect those in the city eligible to become U.S. citizens with assistance, such as legal advice, help on applications and financial counseling.
The NYCitizenship program has already helped more than 1,800 New Yorkers complete naturalization applications since 2012, according to the Center for Popular Democracy report.
In addition to the initiative, the city's Office of Immigrant Affairs will also commission a study on the economic impact of citizenship programs nationwide.
Source
Open Letter to the Governor of Puerto Rico Ricardo Roselló
Sign-On Letter Condemning the Actions of the Puerto Rican Government on May Day and Demanding Justice for the Puerto...
May 3, 2018
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and organizations that came together on May 1, 2018 to march against inhumane austerity measures that continue to drive a massive exodus of families in search of a better life. We stand with the millions of Puerto Ricans who remain on the island and fight every day to sustain their families and improve their collective quality of life. We write today to condemn the inhumane and violent police actions of the government of Ricardo Rosselló.
On May 1, 2018, thousands of Puerto Rican people, including elderly adults and children, who were exercising their First Amendment right to protest were met with state violence through the use of tear gas and violence at the hands of the police. Images captured at the event, corroborated by first-hand accounts, show crowds of people fighting to catch their breath as they ran away from police in riot gear. This type of scene has no place in a democratic society. The right to assemble and express frustration at the government is essential to the practice of democracy. We are deeply disturbed by Governor Roselló’s defense of the police brutality and demand that the local government take the appropriate actions to prosecute those who gave and executed the orders for these actions to take place.
On May 1, 2018, thousands of Puerto Ricans came out to protest the measures that the governor and the fiscal control board have put forward over the last two years. These measures adversely affect working class Puerto Ricans, and include:
Privatizing of the public school system and the power company; Doubling the tuition costs in Puerto Rico's public university; Closing over 300 schools; Slashing labor rights; Raising taxes; and Cutting pensions.This dire situation is forcing families to flee the island en masse. The Center for Puerto Rican Studies estimates that Puerto Rico could lose 14% of its population, 470,000 people, by 2019.
On May Day, the people of Puerto Rico came out with clear demands for their government. Today we stand with them and echo their demands in solidarity, and we commit to advocate for them in the United States.
We further demand immediate accountability for the May Day violence. Our demands are as follows:
Stop austerity: The Government of Puerto Rico should stop all austerity measures and invest in the working people of Puerto Rico by strengthening labor rights, raising the minimum wage, and promoting other policies that allow families in the island to live with dignity. Living with dignity includes rebuilding Puerto Rico’s power grid with 100% clean and renewable energy and keeping the power grid and power generation in public hands under community control, so as to mitigate the climate crisis and adapt for future extreme weather. Cancel the debt: The Government of Puerto Rico should not make, and the U.S. government should stop promoting, any more debt payments to billionaire bondholders. Instead, all government efforts should focus on securing payments to pension holders. The Puerto Rican government should also prosecute any individual that has profited from the debt crisis. Prosecute: The Government of Puerto Rico should conduct a full, transparent and impartial investigation into the police violence during the May Day actions and prosecute every police officer and civil servant who instructed and executed these acts of violence against the Puerto Rican people. We also encourage human right organizations to conduct their own independent investigations and oversight to guarantee that this process is done with full transparency.We, the undersigned organizations, stand in solidarity with the Puerto Rican people and their demands, condemn the actions of the Puerto Rican government, and demand that the local government take the appropriate actions to prosecute those who instructed and executed these actions.
Sincerely,
215 People Alliance 32BJ SEIU About Face: Veterans Against the War Action Center for Race and the Economy Action NC Alliance for Puerto Rico-Massachusetts Alliance for Quality Education American Family Voices Americas for Conservation Arkansas United Community Coalition Black Voters Matter Fund Blue Future CASA Center for Popular Democracy Chicago Boricua Resistance! Climate Hawks Vote Coalition for Education Justice Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA) Courage Campaign CT PR Agenda Delaware Alliance for Community Advancement DiaspoRicans DiaspoRiqueños Florida Immigrant Rights Coalition- FLIC HANA Center Harry Potter Alliance Hedge Clippers Institute for Policy Studies, New Internationalism Project Journey for Justice Alliance Korean Resource Center (KRC) Lil Sis Maine People’s Alliance Make the Road CT Make the Road NJ Make the Road NV Make the Road NY Make the Road PA Maryland Communities United Massachusets Jobs with Justice Massachusetts Education Justice Alliance Massachusetts Immigrant and Refugee Advocacy Coalition- MIRA Mi Familia Vota Movement Voter Project NAKASEC - Virginia National Economic and Social Rights Initiative National Korean American Service & Education Consortium (NAKASEC) New Haven Association of Legal Services Attorneys NYCC OLÉ in Albuquerque, NM One America Organize Florida Pennsylvania Student Power Network PICC Pineros y Campesinos Unidos del Noroeste (PCUN) Presente Action Progressive Caucus Action Fund Progressive Leadership Alliance of Nevada (PLAN) Promise Arizona (PAZ) Public Higher Education Network of Massachusetts Refund America Proyect Resource Generation Services, Immigrant Rights, and Education Network (SIREN) SPACEs Student Power Networks Sunrise Movement TakeAction Minnesota The Bully Project The Shalom Center United Action CT United for a New Economy United We DREAM VAMOS4PR WeChoose Coalition Womens March Youth Progressive Action Catalyst
www.populardemocracy.org
###
Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Media Contact: Samy Nemir, (929) 285-9623, solivares@populardemocracy.org
Top economists rip Fed, call for letting inflation run higher than normal
Top economists rip Fed, call for letting inflation run higher than normal
Should Federal Reserve officials meet expectations and raise interest rates next week, they will be doing so over the...
Should Federal Reserve officials meet expectations and raise interest rates next week, they will be doing so over the objections of some high-profile experts, including one who used to work for the central bank.
A coalition of economists released a letter Friday urging the Fed to change the criteria it uses to make decisions. Specifically, the group, called "Fed Up," is advocating for a higher inflation rate target than the current 2 percent level. Among its members is former Minnesota Fed President Narayana Kocherlakota.
Read the full article here.
National advocacy groups are backing the sick-leave effort in Texas
National advocacy groups are backing the sick-leave effort in Texas
National advocacy groups based mostly in Washington, D.C., and Brooklyn, N.Y., were responsible for $1.8 million of the...
National advocacy groups based mostly in Washington, D.C., and Brooklyn, N.Y., were responsible for $1.8 million of the $2.5 million contributed and loaned to the political action committee leading the effort to mandate paid sick leave for workers in Texas...The other major outside donors include...$95,000, Center for Popular Democracy, Brooklyn, N.Y.
Read the full article here.
Fed Chairwoman: African-Americans Have Not Recovered from Economic Downturn
Fed Chairwoman: African-Americans Have Not Recovered from Economic Downturn
Federal Reserve Chairwoman Janet Yellen delivered her semiannual testimony on the U.S. economy and monetary policy to...
Federal Reserve Chairwoman Janet Yellen delivered her semiannual testimony on the U.S. economy and monetary policy to the Senate Banking Committee Tuesday. In her prepared remarks, Yellen acknowledged that the country’s economic recovery has not fully extended to the African-American population.
“Jobless rates have declined for all major demographic groups, including for African-Americans and Hispanics,” Yellen said. “Despite these declines, however, it is troubling that unemployment rates for these minority groups remain higher than for the nation overall, and that the annual income of the median African-American household is still well below the median income of other U.S. households.”
An accompanying report revealed that the median Black household income in 2014 was $40,000, which means African-American households are earning just 88 percent of their pre-recession incomes.
The 2014 median white household income was $67,000. According to the report, white, Asian and Hispanic households have regained 94 percent of their pre-recession earnings.
Furthermore, unemployment rates for African-Americans continue to be lower than they were prior to the recession, compared to white unemployment rates, which have nearly returned to original levels.
The Fed has faced growing criticism from activists and lawmakers who accuse the banking system of ignoring the economic disparity faced by minorities in the U.S. Supporters say Fed-controlled interest rates have a direct impact on the economic success of Black Americans.
Tuesday’s comments were a stark contrast to the position taken by Yellen last July, when she argued there was nothing the Reserve could do “about any particular group.”
The statements fired up Connie Razza, director of strategic research at the Center for Popular Democracy, who issued a statement in response.
“With African-Americans still mired in our own Great Recession, we should be hearing a positive vision from the Fed on how to foster full employment,” Razza said on behalf of the Fed Up Coalition. “While the economy is complex and the Federal Reserve’s tools are limited, there is plenty the Fed can do to improve the labor market for Black workers and to reduce racial inequality in the job market.”
The Fed Up Coalition is a consortium of labor unions, community-based organizations and policy think tanks fronted by the Center for Popular Democracy and Action for the Common Good. The group maintains that the economic upswing is a myth for most demographics and stresses that keeping interest rates low will give the economy a chance to truly recover for everyone. Modest rates will raise wages, bringing the country closer to full employment and eliminating the need for discriminatory hiring practices, according to the campaign.
During Yellen’s February address to the House Financial Services Committee, several Democrats pressed the issue of Black unemployment rates.
“Nobody is suffering from unemployment like the African-American community,” Georgia Rep. David Scott said at the hearing, per CNN. “We have got to get the Fed to get off the dime and put the issue of African-American unemployment on the front burner. That is the core of all of the domestic issues that we’re facing.”
The unemployment rate for African-Americans in May was 8.2 percent, which was double the rate of whites at 4.1, according to the Bureau of Labor Statistics.
By Shaundra Selvaggi
Source
23 hours ago
23 hours ago