Activists invite St. Louis Fed president on north St. Louis bus tour
Activists invite St. Louis Fed president on north St. Louis bus tour
Activists with a group pushing for changes at the Federal Reserve asked St. Louis Fed President James Bullard to...
Activists with a group pushing for changes at the Federal Reserve asked St. Louis Fed President James Bullard to accompany them on a bus tour of some of the poorest communities in St. Louis.
About a dozen activists delivered an invitation for the tour to a St. Louis Fed official at the regional Fed headquarters downtown. An equivalent number of police watched.
“You’re very removed when you’re in that rarified air of the Federal Reserve,” said organizer Derek Laney.
The group is affiliated with the national Fed Up campaign, which is pushing for more diversity on regional Fed boards and wants the Fed to put more emphasis on keeping unemployment low rather than controlling inflation. Laney is affiliated with Missourians Organizing for Reform and Empowerment, a local activist group that speaks out on issues such as policing and coal companies.
The activists’ demonstration coincided with the Fed’s Open Market Committee meeting Wednesday, where Fed officials decided, as expected, to again hold off raising its benchmark interest rate.
Still, some expect the Fed could signal another small rate hike at the end of the year, similar to a small increase in December 2015 that was the first hike in almost 10 years.
Even discussing an increase will still affect market interest rates and economic growth — an unnecessary move while many people are still trying to benefit from the tepid economic recovery, said Nick Apperson, an executive from downtown tech firm LockerDome who participated in the demonstration.
“While it’s likely they’re not raising interest rates in this meeting, … they’re hinting that they’re going to, which will have a similar effect,” he said.
Laney said the group also wanted to call attention to comments Bullard made last month at the annual conference attended by Fed officials and other top central bankers in Jackson Hole, Wyo. Fed Up activists attended the event to speak with officials, and during an interview with CNBC, Bullard said that one of the group’s funders, Facebook co-founder, Dustin Moskovitz, should have come in person rather than sending “all these people.”
“If Bullard wants to walk back those comments he made at Jackson Hole, he needs to walk our streets and talk to our folks,” Laney said.
By Jacob Barker
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Women Have a Voice: Watch 2 Protestors Confront Senator Jeff Flake to Call for an FBI Investigation
Women Have a Voice: Watch 2 Protestors Confront Senator Jeff Flake to Call for an FBI Investigation
Before Senator Jeff Flake shocked the world by requesting an FBI investigation into sexual assault claims made by Dr....
Before Senator Jeff Flake shocked the world by requesting an FBI investigation into sexual assault claims made by Dr. Christine Blasey Ford against Supreme Court nominee Brett Kavanaugh on Friday, the Arizona Republican was confronted in an elevator by two protestors who attempted to convince him to call for the probe. The scene was caught on video by people in the hallway, and may have ultimately tipped the scales in Flake’s determining whether to make his pitch to the Senate Judiciary Committee.
Read the full article here.
Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major...
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major Republican-friendly polling shop surveyed CEOs across the country about these typically left-leaning policies, one thing was made clear: they overwhelmingly support them.
So when it came to presenting the results to the Council of State Chambers of Commerce, which commissioned the research, the pollsters had a challenge on their hands — how to reconcile the widespread opposition to these policies by many business lobby groups with their popularity among the people actually running businesses.
In a recorded webinar, David Merritt, the managing director of polling firm LuntzGlobal, described the “empathy” CEOs feel for workers along with their support for labor-friendly policies. “If you ask about them in isolation, of course we want to take care of people who are caring for a loved one. Of course we want to give folks more benefits or more leave or more income.”
In the presentation, obtained by liberal advocacy group the Center for Media and Democracy, Merritt told the business lobbyists that executives expressed widespread support for a number of policies that are vehemently opposed by conservative politicians.
Based on their survey of 1,000 executives, LuntzGlobal found 80% supported raising their state minimum wage, 82% supported increasing paid parental leave requirements and 73% supported increasing paid sick leave. The Washington Post first reported details of the presentation.
“If you’re fighting against a minimum wage increase, you’re fighting an uphill battle,” Merritt said in the presentation. “Because most Americans, even most Republicans, support raising a minimum wage.”
He went on to coach participants on how to oppose those policies anyhow.
“A lot of you guys have minimum wage battles at the state level. If you are fighting those fights, the best way to fight it is not to talk about the minimum wage,” he said. “If you can, turn it into a federal issue and talk about the Earned Income Tax Credit.”
Joe Crosby, Director of the Council of State Chambers, which commissioned the research, said in a statement that the survey was intended “to benchmark trends on current political issues” and “it primarily covered mid-sized and larger companies, not the smaller businesses that are most affected by wage and leave mandates.”
LuntzGlobal, founded by prominent Republican pollster and consultant Frank Luntz, was unable to comment, per the terms of its contract wit the Council of State Chambers, Crosby said.
“We have known for years”
Advocates for these worker-friendly policies said the findings are proof their cause has many allies in the business community — even if those allies aren’t often the most outspoken voices representing business interests in Washington and state houses.
“We have known for years what this research confirms: that an overwhelming share of business leaders support paid sick days, paid leave and other family friendly policies,” said Debra L. Ness, president of the National Partnership for Women & Families, a group that advocates for paid leave.
At one point in the call, Merritt held up language from the group Ness belongs to (below) as polling higher among executives than any other.
“I wouldn’t have changed anything about this statement,” Merritt said in the presentation. “This was the clear winner — from the National Partnership for Women and Families… Perfect, perfect language.”
Business lobby groups like the various state-level chambers of commerce are “not currently representing the views of their members — and doing that at the expense of single moms and hard-working parents,” said Elianne Farhat, who runs the Fair Workweek Initiative, a campaign of the Center For Popular Democracy, a liberal advocacy group. “In every place fair workweek laws are moving, the chambers of commerce have been the loudest voices of opposition.”
But Crosby, the Director of the Council of State Chambers, said the real question at issue is whether labor regulations should be forced onto all businesses by law, not whether businesses support the goal of better pay and working conditions. “Of course business owners support raising wages and benefits for their employees; those are goals they work for every day,” he wrote in an email to BuzzFeed News. “But one-size-fits-all government mandates simply don’t work.”
A spokesperson for the National Restaurant Association, the industry’s largest trade group and one of the loudest voices opposing minimum wake hikes, said its members are more sensitive to labor costs than those in other industries. “The Council of State Chambers represents a diverse range of businesses, including tech and manufacturing companies, that could adapt to increased labor costs more easily” than restaurant and fast food owners, said NRA spokesperson Christin Fernandez.
The U.S. Chamber of Commerce, the federal body representing the country’s business community, echoed concerns that pro-labor policies would negatively affect employers.
“The U.S. Chamber, based on input from our members, continues to believe that imposing higher labor costs on employers, especially small businesses, will force them to cut back elsewhere, and will ultimately price low and un-skilled workers out of entry level job opportunities,” said Randy Johnson, senior vice president of Labor, Immigration, and Employee Benefits for the Chamber, in a statement.
Asked about the chamber’s position on paid family and sick leave, as well as predictive scheduling, all of which polled well in the survey, spokeswoman Blair Holmes wrote that the Chamber is “careful to be responsive and in synch” with the business community it represents.
“The only point we will make is to say we have not lobbied on these issues in any of the states,” she said, adding that the federal group “is not in a position to comment on the positions these state chambers may have taken” with respect to raising the minimum wage or paid leave and “will not comment on state or local versions of predictive scheduling legislation.”
On its website, the U.S. Chamber of Commerce lists among its 2016 priorities: “Oppose efforts to increase the minimum wage and to index the minimum wage to inflation,” and “Oppose attempts to make FMLA [Family and Medical Leave Act] leave paid or to mandate paid sick leave.”
By Cora Lewis
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Immigration Advocates on SB 4: We’re Resisting in Texas
Grassroots leaders and local officials wasted little time organizing a coordinated campaign to fight SB 4, a new Texas...
Grassroots leaders and local officials wasted little time organizing a coordinated campaign to fight SB 4, a new Texas law that targets cities, towns and sheriffs that don’t cooperate with federal immigration enforcement.
Only nine days after Texas Republican Gov. Greg Abbott signed the legislation, formally known as Senate Bill 4, into law, grassroots advocates announced a “Summer of Resistance” campaign May 16. The statute allows police officers, sheriff deputies and Texas state troopers to ask about a person’s immigration status – whether they are here legally – during a routine stop.
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Federal Reserve keeps key interest rate at zero, citing global turmoil
The Federal Reserve on Thursday voted to maintain its unprecedented support for the U.S. recovery, leaving a key...
The Federal Reserve on Thursday voted to maintain its unprecedented support for the U.S. recovery, leaving a key interest rate unchanged amid gathering clouds over the global economy.
In an official statement, the nation’s central bank said the job market is recovering and hiring is “solid.” But it expressed concern that inflation remains too low and exports have weakened. Meanwhile, the risk is building that turmoil overseas will drag down growth in America.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the central bank's official statement read.
The decision to keep the Fed’s benchmark interest rate at zero amounts to a recognition that the robust recovery central bank officials had hoped for when they launched into an uncharted era of easy money during the throes of the 2008 financial crisis has yet to materialize. The Fed has repeatedly pushed back the goal line as the economy failed to deliver. Seven years after the central bank cut its target rate to zero, Fed officials believe the recovery is not yet ready to stand on its own.
At the press conference that followed the rate announcement Thursday afternoon, Fed Chair Janet Yellen said that a rate hike was still likely by the end of the year. But she reiterated that though “domestic developments have been strong, we want to see continued improvement in the labor market," and the central bank would like "to bolster our confidence that inflation will move toward" the Fed’s 2 percent target before a rate hike.
“We have very large drags from energy prices and import prices," Yellen said, adding that the central bank views those as transitory. As the labor market heals, "we will see further upward pressure on inflation," she said. “We expect to achieve our 2 percent goal over the medium term.”
Markets grew volatile immediately after news of the rate hold, going flat by the end of Yellen's press conference. The Dow Jones Industrial average closed down 0.4 percent and the Standard & Poor’s index closed down about 0.3 percent on Thursday.
Documents released by the Fed show most of the Fed's top brass now anticipate increasing rates only once this year, instead of twice. A growing minority think the central bank should not raise its benchmark rate this year at all, and one suggested it should stimulate the economy even more by taking the rate negative.
Three officials are advocating a 2016 liftoff, while one person pinned 2017 as the date -- longer than anyone has suggested so far.
“Even though the summer stresses in financial markets have abated, the impact of the intense market volatility on domestic economic activity is yet to fully play out,” Millan Mulraine, deputy chief U.S. macro strategist at TD Securities, wrote in a research note.
The Fed lowers its target rate when it wants to stimulate the economy by encouraging businesses and consumers to spend. It hikes when the economy begins to grow too quickly and inflation picks up, making saving money more attractive.
Timing, however, is crucial. If the Fed moves too soon, it risks undercutting the recovery’s momentum. Waiting too long could stock dangerous financial bubbles.
Yellen made reference to that risk at the press conference Thursday when asked whether the Fed should be moving sooner rather than later to raise the rates. "I don't think it's good policy to then have to slam on the brakes," she said.
The Fed modestly upgraded Thursday its expectation for economic growth this year from 1.9 percent to 2.1 percent, but the forecast is still lower than the robust expansion enjoyed a decade ago. The jobless rate has already fallen below the central bank's June estimate of 5.3 percent. The Fed adjusted its forecast to 5 percent. It also nudged up its estimate of core inflation from 1.3 percent to 1.4 percent.
In May, Yellen said speech that she expected the economy would be strong enough to raise the target rate by the end of the year. Other top Fed officials had signaled the long-awaited move could come during its meeting this month.
But that was before the jaw-dropping swings in financial markets over the past few weeks, including a 1,000-point plunge in the Dow Jones industrial average. Evidence is mounting that China’s breakneck economic growth is fizzling out faster than previously thought.
In the meantime, the strong U.S. dollar and low oil prices are weighing on inflation, which has run below the Fed’s target of 2 percent for years. The World Bank, the International Monetary Fund, Nobel-laureate Joseph Stiglitz and former Treasury Secretary Lawrence Summers have all called on the central bank to hold off on a rate hike, at least for now.
“Now is the time for the Fed to do what is often hardest for policymakers,” Summers wrote in The Washington Post recently. “Stand still.”
The calls for delay are also coming from a populist campaign known as Fed Up, which protested outside of the central bank’s buildings Thursday. Several lawmakers joined the demonstration, including Michigan Rep. John Conyers, who is sponsoring a bill that would require the Fed to target a 4 percent unemployment rate.
Not everyone agrees the Fed should wait, however. Richmond Fed President Jeffrey Lacker dissented from the central bank’s vote on Thursday. In aspeech earlier this month, he pointed to strong consumer spending, the sharp decline in unemployment and a pickup in inflation measured since the beginning of the year as reasons a rate hike is warranted.
“I am not arguing that the economy is perfect, but nor is it on the ropes, requiring zero interest rates to get it back into the ring,” he said. “It’s time to align our monetary policy with the significant progress we have made.”
In its official statement, the Fed attempted to assure investors and the public that after the first rate hike, it expects to make subsequent hikes only gradually. Though most officials predicted the Fed would raise its target rate several times next year, they also forecast it would remain below its historic norm of about 4 percent for several years. Fed documents released Thursday show the long-run median estimate at just 3.5 percent.
Each hike will also likely be small, analysts expect just one quarter of one percent. That would allow the central bank to assess how an economy grown accustomed to easy money operates under a new regime.
“One should never discount the importance of an interest rate change by a central bank merely because it looks small,” said Scott Sumner, an economist at the Mercatus Center at George Mason University. “Some pretty big avalanches have started from a small pebble being dislodged.”
Source: Washington Post
Minneapolis Fed chief Neel Kashkari calls some racial disparity 'a crisis'
Minneapolis Fed chief Neel Kashkari calls some racial disparity 'a crisis'
Community organizer Wintana Melekin was grabbing a soda in late June at a coffee shop near her office when she heard...
Community organizer Wintana Melekin was grabbing a soda in late June at a coffee shop near her office when she heard Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, had just been in.
Seeing her chance, she dashed out the door after Kashkari, caught up and asked if he would meet with her organization, Neighborhoods Organizing for Change, to discuss racial and economic disparities in the Twin Cities.
He agreed, and to confirm that he meant it, retweeted Melekin’s tweet saying he was willing to meet.
On Wednesday, the meeting happened. Kashkari sat down with about a dozen people at NOC’s offices in north Minneapolis and committed to an ongoing collaboration between the Minneapolis Fed and some of the state’s most outspoken critics of a status quo in which blacks are not enjoying the benefits of economic growth.
“Some of the racial disparities are a crisis, and we need to treat them like a crisis,” Kashkari said. “One of the things I learned in 2008 is you don’t tackle a crisis with incremental solutions. You tackle a crisis with overwhelming force, and so if this is a crisis, and I think certainly parts of this are, then we need to bring overwhelming force.”
Kashkari, who became president of the Minneapolis Fed at the start of the year, is a former investment banker and Treasury official in the George W. Bush administration. He was appointed the first chief of the bank bailout program known as TARP at the end of the Bush term and start of President Obama’s administration.
Though his everyday work is at the very top of the national economy, Kashkari has a record of trying to understand its depths. As a candidate for governor in California two years ago, Kashkari spent a week living on the streets of Fresno, a midsize city, with just $40. He tried unsuccessfully to find work during that week and wound up in a homeless shelter.
It’s not clear how Kashkari and the nation’s central bank can directly address the challenges that were brought up at Wednesday’s meeting. The Fed controls interest rates, with the goal of creating maximum employment, but monetary policy can’t be targeted at segments of the population or certain states or cities. As Kashkari pointed out, black unemployment in the United States stubbornly tracks at roughly twice the level of white unemployment.
“There’s something structural in the U.S. economy, in good times and bad, that black unemployment is almost always twice as high as white unemployment,” Kashkari said.
He said driving unemployment downward will help everyone, and he is for low interest rates as long as they aren’t driving inflation upward. But he has not heard a satisfying answer for why the disparity in Minnesota is worse than in most places, though he committed to working with NOC to understand why it is.
From NOC’s perspective, the meeting with Kashkari was historic. Never before has a Fed president met face to face with its members in Minneapolis. As local ambassadors for the national Fed Up campaign, the organization has a fresh interest in the Fed and has taken the position that interest rates should remain low.
For Anthony Newby, the head of the organization, the meeting was a good starting point. Kashkari’s comment that the economic plight of black Minnesotans is a crisis requiring a response of “overwhelming force” was particularly satisfying.
“It sets the tone for how the Fed could, in unusual and unorthodox ways, use its power and position to solve some of these equity problems,” Newby said.
Kashkari agreed to spend a day with Rosheeda Credit, a mother of five at the meeting who said she struggles to pay for rent and child care. “The crime rate is high here, and the rent is high here and we’re not getting paid enough to work here,” Credit said.
He heard from Tenice Hodges, a former teacher who moved back to Minneapolis two months ago to help her sister’s family. She is living out of her car until she can get a teaching job because she can’t afford the city’s high rents with her restaurant wages.
“We are struggling out here,” Hodges said. “Yes, I’m employed. I work every day. But can I go out and get an apartment right now? No. I don’t have $1,100 by myself, or $2,200 for a deposit.”
Kashkari committed to looking closely at the résumés of people of color that NOC submitted for various board appointments at the Minneapolis Fed. He also said he will work with NOC on research and meet with people from the organization again in the future. He also committed to attending a workshop put on by groups affiliated with NOC at the Jackson Hole Economic Policy Symposium, an annual conference in Wyoming where central bankers from around the world gather.
Kashkari, who has drawn national attention by calling for a transformative solution to the problem of banks that are too big to fail, explained that his role as a regional Fed president is to understand the problems people face in his district. While the tools of monetary policy are limited, and much of the heavy lifting that causes social change much happen in Congress, he said it is important for him to meet with people as he did Wednesday to understand their concerns.
“I appreciate that you think it is business as usual,” Newby told Kashkari. “I don’t think it is business as usual.”
By ADAM BELZ
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GOP accuses Dems of stalling Kavanaugh over document requests
Jennifer Epps-Addison, network president at the grassroots Center for Popular Democracy, stressed that public access to...
Jennifer Epps-Addison, network president at the grassroots Center for Popular Democracy, stressed that public access to Kavanaugh's legal opinions and documents from his time in the Bush administration is "the bare minimum of transparency Americans should expect before confirming a Supreme Court nominee."
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CPD Director of Research Connie Razza on Melissa Harris-Perry
How Pension Plans are at Risk Melisa Harris-Perry - March 23, 2014 - Lynnette Khalfani-Cox, Connie Razza, Arun Gupta...
Melisa Harris-Perry - March 23, 2014 - Lynnette Khalfani-Cox, Connie Razza, Arun Gupta and Karen Friedman takes a closer look at Detroit’s pension funds as the city struggles with bankruptcy and the growing retirement savings crisis nationwide.
How CEO Pensions Compare to Average Workers' PensionsMelissa Harris-Perry - March 23, 2014 - According to a recent survey, CEO pensions are worth at least 239 times more than the average employee's 401(k) at ten of the biggest U.S. companies.
Why Cities are Watching Detroit
Melissa Harris-Perry - March 23, 2014 - The MHP table discusses if other American cities could be on the same road as Detroit.
What You Need To Know About The Special Election In Arizona
What You Need To Know About The Special Election In Arizona
Ady Barkan, an ALS-stricken progressive activist whose “Be A Hero” initiative targets Republicans who voted for, or...
Ady Barkan, an ALS-stricken progressive activist whose “Be A Hero” initiative targets Republicans who voted for, or back the tax cuts, traveled to the district to campaign on Tipirneni’s behalf. While in Arizona, Barkan, who will need Medicare as his body deteriorates, asked Lesko to respond to the stated intentions of several Republican leaders, including House Speaker Ryan and White House budget director Mick Mulvaney, to seek major cuts to Social Security, Medicare and Medicaid.
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Latinos Presentan La Mayor Tasa De Mortalidad Por Accidentes En Industria De La Construcción De Nueva York
Latinos Post – October 25, 2013 - La población hispana e inmigrante que es empleada en el sector de la...
Latinos Post – October 25, 2013 -
La población hispana e inmigrante que es empleada en el sector de la construcción del estado de Nueva York es el grupo étnico más vulnerable a los accidentes fatales en su lugar de trabajo, según reveló este jueves 24 de octubre un reporte realizado por el Centro por la Democracia Popular.
De acuerdo con El Diario NY, Los datos arrojados por el estudio, muestran que entre 2003 y 2011, del total de muertes por caídas y accidentes en las construcciones registrados en La Gran Manzana, el 60% de los casos los fallecidos resultaron ser hombres hispanos y/o inmigrantes.
Se trata de una cifra alarmante ya que 75 trabajadores de la construcción mueren por accidentes de manera anual en el estado de Nueva York, según dio a conocer la periodista Blanca Rosa Vílchez a la cadena de noticias de Univisión.
La fuente señala que en Nueva York el 41% de los trabajadores del sector construcción son hispanos. Sin embargo, el informe dado a conocer este jueves demostró que el 74% de las muertes por accidentes corresponden al mismo grupo étnico.
Un problema de seguridad
El pasado 24 de septiembre, trabajadores de la construcción en Brooklyn se manifestaron para exigir mejoras en las condiciones de seguridad en sus lugares de trabajo, luego de que reportaran una importante alza en los accidentes relacionadas con la escasa inversión en esta materia que las compañías constructores ofrecen, lo que ha causado graves accidentes que en muchos casos han cobrado la vida de trabajadores que reciben un salario mínimo.
En su momento Diario NY dio a conocer que los obreros se manifestaron en el 227 de la avenida Carlton, en Fort Greene, lugar en el que el 10 de septiembre un trabajador de 62 años perdió la vida al venirse abajo el techo de uno de los apartamentos en los que trabajaba.
De acuerdo con los manifestantes, las compañías contratistas de Nueva York compran materiales de mala calidad con tal de ahorrar dinero y no invierten en cursos de seguridad para sus trabajadores, lo que deja a los constructores en una situación peligrosa.
Miedo a denunciar por falta de documentación legal
La comunidad latina que trabaja en la construcción es doblemente vulnerable a esta situación, ya que muchos de los obreros son inmigrantes indocumentados, por lo que en caso de sufrir algún accidente prefieren no denunciar a la empresa constructora por miedo a ser deportados o despedidos.
Por si esto fuera poco, en caso de reportar violaciones a las normas de seguridad, las multas a las compañías constructoras son por montos muy bajos, lo que facilita que se siga omitiendo la inversión en seguridad en los lugares de trabajo.
Según destaca Univisión, las multas a las que se enfrentan las constructoras no superan los 2 mil dólares en caso de accidente, y los 12 mil en caso de muerte de un trabajador, una cifra que refleja la dimensión de los riesgos con los que los obreros de la construcción deben trabajar todos los días.
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