Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central...
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central bank to keep interest rates low, as Yellen did—also criticized the Powell pick.
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Fed's Kashkari says racial economic gap needs forceful response
Fed's Kashkari says racial economic gap needs forceful response
A U.S. central banker on Wednesday pledged to devote more resources to addressing economic disparities between black...
A U.S. central banker on Wednesday pledged to devote more resources to addressing economic disparities between black and white Americans, saying the high rate of unemployment among African Americans is "really troubling."
"I do think some of the racial disparities are a crisis and we need to treat them like a crisis," Neel Kashkari, chief of the Federal Reserve Bank of Minneapolis, said after meeting with members of the Minneapolis black community and Fed Up, a network of community organizations and labor unions calling for changes to the U.S. central bank.
Kashkari, a former Republican candidate for California governor, is the son of Indian immigrants and the only one of 17 Fed policy-makers nationwide who is not white.
Unemployment among black Americans, for example, is typically twice that for whites, Kashkari noted. Educational disparity may be one factor, but more research is needed to identify causes, he said.
"We need to understand the 'why?' before we can design potential solutions," Kashkari said. "You don’t tackle a crisis with incremental solutions ... We need to bring overwhelming force to try to address this."
At the same time, Kashkari suggested the solutions are likely to go beyond the powers of the Fed, with lawmakers and local politicians likely in a better position to craft meaningful solutions.
The Fed, he said, has only the tool of interest rates at its disposal. As long as inflation remains low, he said, the Fed can keep rates low to boost job prospects for all Americans. But, he said, there is little the Fed can do to address structural problems in the economy besides contribute to research.
Regional Fed bank presidents often meet with members of their communities but only rarely are those meetings publicized.
Wednesday's meeting and press conference afterward was livestreamed by Minneapolis-based media collective Unicorn Riot from the offices of Minnesota Neighborhoods Organizing for Change, which hosted the event at which several community members aired their experiences with low pay, long hours and homelessness.
Kashkari promised to spend a day with one of the participants to better understand the challenges she faces.
He also promised to meet with community activists again this month on the sidelines of an annual meeting of global central bankers in a national park near the well-heeled town of Jackson, Wyoming, and to collaborate on research.
"My job is to be your voice," he said.
By KRISTOFFER TIGUE
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Fed Hawk Lacker to Retire Oct. 1, Successor Search Under Way
Fed Hawk Lacker to Retire Oct. 1, Successor Search Under Way
Federal Reserve Bank of Richmond President Jeffrey Lacker plans to retire Oct. 1, marking the exit of one of the U.S....
Federal Reserve Bank of Richmond President Jeffrey Lacker plans to retire Oct. 1, marking the exit of one of the U.S. central bank’s most steadfast inflation fighters at a time when the Fed is weighing how quickly to raise interest rates.
The Richmond Fed said Tuesday that a committee had been formed to find a successor for Lacker, who has led the regional Fed bank since 2004, and has engaged professional services firm Heidrick & Struggles to conduct the search. The head of the Richmond Fed will be a voting member of the policy-setting Federal Open Market Committee in 2018.
Lacker, 61, was a voice of restraint in the use of monetary policy and the central bank’s balance sheet as the Fed deployed extraordinary powers to combat the financial crisis, the worst recession since the Great Depression as well as a sluggish recovery.
“He was consistent in terms of wanting a narrow Fed that stuck to the business of ensuring price stability because that would be the Fed’s best contribution to society,” said Vincent Reinhart, chief economist at Standish Mellon Asset Management Co. LLC in Boston. “Jeff Lacker kept the faith.”
Lacker dissented frequently in favor of tighter policy when he was a voter on the FOMC, including at every meeting in 2012. During the financial crisis he warned about channeling credit to specific sectors of the economy, inflation risks and government rescues of troubled banks.
Core Doctrines
One of Lacker’s core doctrines was that an expansion of Fed credit to other sectors of the economy would create expectations of further support and thus further destabilize markets in the future as investors tested the perceived safety net.
“The striking feature of central bank lending during the recent turmoil is the extent to which it has extended well beyond the boundaries that previously were understood to constrain such lending,” Lacker said in a speech in November 2008.
Lacker wasn’t alone in those views. Former Fed Chairman Paul Volcker said the bailouts had taken the central bank to “the very edge of its lawful and implied powers, transcending in the process certain long-embedded central banking principles and practices.”
Arguing for constraint when the entire financial system was at risk seemed overly cautious to some of his colleagues. Former Chairman Ben S. Bernanke noted that Lacker opposed a crisis-era innovation called the Term Securities Lending Facility, where the Fed loaned out its Treasury portfolio to primary dealers in exchange for mortgage-backed securities as collateral.
“Jeff Lacker spoke against the TSLF,” Bernanke wrote in his book, “The Courage to Act.”
Lacker will depart three years ahead of his mandatory retirement age of 65. He hasn’t lined up another job, according to Richmond Fed spokeswoman Laura Fortunato. “He does want to get back to writing and research,” she said.
The search for his successor, which gets under way as the Atlanta Fed is undertaking its own campaign to replace its president Dennis Lockhart, who retires Feb. 28, will be conducted nationally to “identify a broad, diverse and highly qualified candidate pool for this leadership role,” the Richmond Fed said in a statement on its website.
The Fed is under pressure to increase diversity among its leaders after criticism that it is dominated by white men. Janet Yellen, the first woman to chair the central bank, has said she’d like to see more diversity, though the Richmond Fed’s own board of directors will make the ultimate selection.
Jordan Haedtler, campaign manager for the Fed Up coalition, which has called for a more diverse leadership that includes more minorities and women, said the group will push for “a publicly inclusive and transparent process with the consideration of diverse candidates who will consider labor market conditions for all workers in weighing their decisions.”
Haedtler said Lacker was “always gracious” and toured low-income communities in Charlotte, North Carolina, with one of their member groups.
Given the Richmond Fed’s tradition of standing firm on price stability, “my guess is that the Richmond Fed will find a hawk,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte. “Part of this reflects the sentiment of businesses, residents and bankers located in this part of the country, who tend to take a more cautious view on what monetary policy can and cannot do,” he said.
Atlanta’s Vacancy
Lacker admitted in speeches that his forecasts for the recovery were at times too optimistic. His warnings about inflation were defused as shocks hit the economy. When the Fed decided to go forward with a second round of quantitative easing in November 2010, Lacker raised concerns that it could make it hard to restrain inflation.
“This poses unacceptable risks to price stability and to our credibility,” he said, according to the meeting transcript. “I fear today’s decision and the expectations it encourages will come back to haunt us.”
The Fed’s preferred inflation measure, the personal consumption expenditures price index, did rise above its 2 percent target in 2011 and for part of 2012. It then fell below 2 percent in May that year and has never risen above that level since, partly due to a tumble in oil prices that began in 2014.
By Craig Torres
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The elevator moment: when to speak up, when to stay quiet, and the power of both
The elevator moment: when to speak up, when to stay quiet, and the power of both
Anger, pain, and courage. That was what the moment was about. Two women and their pain. A U.S. Senator in an elevator,...
Anger, pain, and courage.
That was what the moment was about.
Two women and their pain.
A U.S. Senator in an elevator, literally trapped and torn.
Frozen by their escalating anger and anguish over what he had just announced.
A yes vote for Brett Kavanaugh to join the Supreme Court.
Read the article and watch the video here.
#Cville2DC marchers pledge to fight white supremacy in all its forms after 118-mile journey
#Cville2DC marchers pledge to fight white supremacy in all its forms after 118-mile journey
WASHINGTON — They kept a grueling pace. More than 250 marchers completed a 118-mile journey from Charlottesville,...
WASHINGTON — They kept a grueling pace.
More than 250 marchers completed a 118-mile journey from Charlottesville, Virginia, to the nation’s capital on Wednesday. A core group of faithful marchers walked a third of the length of Virginia, a former Confederate slave-holding state, to speak out against racial hatred.
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Activists Call on Fed Chief to Focus on Struggles of Citizens
The China Post - November 16, 2014 - In a rarity for a U.S. central bank chief, Federal Reserve Chair Janet Yellen met...
The China Post - November 16, 2014 - In a rarity for a U.S. central bank chief, Federal Reserve Chair Janet Yellen met Friday with activist groups calling for a fairer economic recovery and a more transparent Fed.
About 20 representatives of community and labor organizations met with Yellen for an hour in the meeting room of the policy-setting Federal Open Market Committee, the activists said.
The groups were banded together as “Fed Up: The National Campaign for a Strong Economy,” lobbying Yellen and her team to orient Fed policy to boost employment and wages.
In addition to Yellen, Fed Vice Chairman Stanley Fischer and board members Lael Brainard and Jerome Powell participated in the meeting.
“We had a very good conversation,” said Ady Barkan, representing the Center for Popular Democracy.
The activists presented their views about conditions in the economy to the Fed officials and “they listened very carefully,” Barkan said.
Yellen “asked people questions about their personal experiences in the economy,” he added.
The coalition gave the Fed officials a list of six proposals to make the central bank more transparent and democratic.
“The economy is not working for the vast majority of people,” Barkan said.
“The Federal Reserve has huge influence over the number of people who have jobs, over our wages ... and yet we don't have discussion and engagement over what Fed policy should be.”
Wearing T-shirts emblazoned with “What recovery?” the activists criticized the Fed's isolation from the general public.
“Our wages are on a flat line for 30 years,” said Anthony Newby, director of Minnesota Neighborhoods Organizing for Change, which wants the Fed to give interest-free loans to cities so they can create jobs in infrastructure projects.
With two regional Fed bank presidents preparing to step down — Charles Plosser for the Philadelphia Fed and Richard Fisher at the Dallas Fed — the coalition is pressing for a transparent process for selecting their successors.
The Philadelphia Fed said on its website Friday that the executive search firm it hired has set up an email address to receive inquiries in the interest of helping the bank “in a broad search for its next president.”
“Philadelphia has hovered around eight percent unemployment for all of 2014; in the black community it's over 14 percent,” said Kati Sipp, head of Pennsylvania Working Families and a “Fed Up” activist.
“We want the Fed to spend some time in the neighborhoods where regular working people live.”
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Turmoil Among Progressive, Latino Groups After Julian Castro Attacked
Turmoil Among Progressive, Latino Groups After Julian Castro Attacked
Why Are Progressive Groups Slamming Julián Castro? Castro,Julian-Clinton,HillaryTexas Insider Report: WASHINGTON, D.C...
Why Are Progressive Groups Slamming Julián Castro?
Castro,Julian-Clinton,HillaryTexas Insider Report: WASHINGTON, D.C. – In the middle of April, POLITICO reported that several progressive groups have targeted HUD Secretary Julián Castro, questioning his vice presidential qualifications if Hillary Clinton were to win the Democratic presidential nomination. The fight between a new-school Latino group and some old-school Latino groups erupted into chatter that kept getting stronger, so much so that Castro had to address it with NBC News.
The new-school latinos campaign led to dissension among Latino organizations. Others have weighed in on the story, claiming that Castro being Latino is just irrelevant. In the midst of all this hubbub, one thing became clear — none of those old-guard Latino groups countered on the merits of the attack against Castro. Apparently, he is untouchable, regardless what he does.
Joe Velasquez, a former deputy political director in the Clinton Administration, submitted his resignation letter from the board of American Family Voices (AFV), which was part of the coalition of groups that hit Castro for a HUD policy the groups argue is too friendly to financial institutions looking to buy distressed homes.
berniesanders-hillaryclintonAnd, the Sanders campaign denied having any part in the effort to discredit Castro.
Progressive groups target Julián Castro
They say the record of the HUD secretary makes him unsuitable to be Clinton’s VP.
By Edward-Isaac Dovere
The 41-year-old Julian Castro is seen by many as the perfect balance to Hillary Clinton. But the veepstakes oppo war has begun.
With Bernie Sanders’ durability exciting progressives at their potential to shape the Democratic race, a coalition of groups — many of them backers of the Vermont senator — are launching a preemptive strike against Housing and Urban Development Secretary Julián Castro, aimed at disqualifying him from consideration to be Hillary Clinton’s running mate.
Tuesday morning, the group emailed petitions to several million people attacking Castro on the relatively obscure issue of his handling of mortgage sales and launching a website with an unsubtle address: DontSellOurHomesToWallStreet.org.
They’re just as open with their political aims: to publicly discredit Castro as a progressive, latching onto the mortgage issue to seed enough suspicion to keep him off Clinton’s shortlist.
“It’s a situation where the Clinton campaign wants Castro to be a major asset to her chances of winning the White House, and unless he changes his position related to foreclosures and loans, he’ll be a toxic asset to the Clinton campaign,” said Matt Nelson, the managing director for Presente.org, the nation’s largest Latino organizing group that focuses on social justice.
“All year, we’ve seen the candidates tripping over themselves to show how tough they’ll be on Wall Street,” said Kurt Walters, the campaign manager for Root Strikers, a 501(c4) group of Demand Progress and its 2 million affiliated activists, who is planning to deliver the petitions to Castro’s office when they’re ready. “Then to turn around and take a step backwards on that exact question, and Castro, Julian3hput someone who has been doing the exact opposite — I think it would be tough for a lot of people who care about Wall Street accountability to get excited about that pick.”
By the coalition’s calculations, HUD under Castro has sold 98 percent of the long-delinquent mortgages it acquired through a program aimed at preventing foreclosures to Wall Street banks under Castro’s watch, without anywhere near the number of needed strings attached. (HUD says that figure is way off.) And Nelson and Walters say that for a politician who’s aiming to be considered the vice presidential prospect for both progressives and minorities, Castro has done too much to help private equity firms like Blackstone, instead of black and Latino communities.
“If Secretary Castro fails to create significant momentum in terms of stopping the sale of mortgages to Wall Street, then I do think it disqualifies him. But there’s time left on the clock,” said Jonathan Westin, the director of New York Communities for Change, which was formed out of the remains of the community activist group ACORN. “I think a lot of the progressive movement would not be in support of a Castro ticket if he fails to make traction here.”
The 41-year-old Castro is seen by many as the perfect balance to Clinton — younger and Latino, with a history as mayor of San Antonio and now two years in the Obama administration, handsome and with a 2012 convention keynote speech that immediately made him a rising star to watch in the party. And people close to him say he’s a proven progressive across the board.
“Castro has a strong record at HUD fighting on behalf of progressive issues including protecting those with criminal records, standing up for LGBT rights and advocating for more inclusive communities through affirmatively furthering fair housing,” said one person close to the secretary.
But Maurice Weeks, an Atlanta-based organizer who works on housing justice in communities of color for the Center for Popular Democracy/CPD Action, said that Castro’s lack of action at HUD is breeding more gentrification and suffering in a way that should make blacks and Latinos pay attention.
“What I wouldn’t be excited about is any candidate, not just Julián, who is looking to further some of these practices,” Weeks said.
At issue is the Distressed Asset Stabilization Program, started in 2010 to allow mortgages going toward foreclosure to be sold to what HUD calls “qualified bidders and encourages them to work with borrowers to help bring the loan out of default.”
The progressives attacking Castro say they believe the mortgages should be sold instead to nonprofits and other institutions that would care more about the communities involved. What Castro’s done, they say, has essentially amounted to a fire sale for Wall Street firms.
Castro,Julian3hRep. Raúl Grijalva (D-Ariz.), co-chairman of the Congressional Progressive Caucus and one of Sanders’ few endorsers in Congress, complained about the program to Castro last week in a letter obtained by Politico.
“Your own Distressed Asset Stabilization Program, which was designed to help right the wrongs of the meltdown years, has been selling homes that once belonged to the families I’ve spoken with at rock-bottom prices to the Wall Street entities that created this situation in the first place,” Grijalva wrote.
HUD says that Castro has continued to meet with advocates, in the hopes of improving the policy, and points to several changes that have been made — including those that have increased the number of mortgages sold to nonprofits. An official pointed to changes made a year ago that, among other things, now require servicers buying loans to delay foreclosure for a year.
“Providing an option for homeowners to remain in their homes is one of the reasons the DASP program was created” said a HUD spokesperson. “We’ve received feedback from stakeholders which has led us to make a number of important changes to the program including the creation of nonprofit-only pools and delaying foreclosure for a year. Additionally, we are still evaluating further enhancements to the program to meet our core mission.”
But that’s not enough for the groups joining the coalition to attack Castro. Those include the Alliance of Californians for Community Empowerment (ACCE) Action, American Family Voices, Color of Change, Courage Campaign, CPD Action, Daily Kos, MoveOn, New York Communities for Change, Other 98%, Presente, RootsAction, Rootstrikers and the Working Families Party.
With the exception of the Working Families Party, which is backing Sanders, the groups have not formally endorsed a candidate in the presidential primaries.
Most conversations about Clinton’s prospective pick center on Castro and Sen. Tim Kaine (D-Va.), and the secretary’s ambitions to be the vice presidential nominee are well known.
But among progressives, so are the suspicions about his bona fides. The red banner across the website proclaiming “TELL HUD SECRETARY JULIAN CASTRO: STOP SELLING OUR NEIGHBORHOODS TO WALL STREET!” amounts to the opening salvo in doing something about it.
“There’s a lot of hope around him,” said Brandi Collins, campaign director for the 1.2-million member Color of Change, who said she was one of the people excited by the possibilities opened up by his keynote speech.
Collins said this complaint about Castro’s leadership is reflective of a whole range of issues her organization has had with what members say is the secretary’s closeness to Wall Street and lack of attention to black and brown communities.
“If he’s not showing up for our communities while the cameras aren’t there, we don’t know that he’ll show up when he’s on his way to the White House,” Collins said.
According to Julia Gordon, formerly at the Center for American Progress and currently an executive vice president at the National Community Stabilization Trust, the coalition may have a point — if only because it is taking advantage of opaque accounting at HUD. Gordon said she’s met often with HUD about these issues but hasn’t seen the kind of progress she’d like or evidence that the program matches the claims that officials make.
“We know it’s been good for investors. According to HUD, it’s been good for the fund, although the level of detail that they release to account for it is minimal. We really don’t know how good it’s been for the homeowners, and that’s where this wave of protests is coming from,” Gordon said.
Laurie Goodman, the director of the Housing Finance Policy Center at the Urban Institute, said that the people who are attacking Castro for selling the loans to Wall Street are misinterpreting the pragmatic realities about what’s in play.
The mortgages in question tend to be delinquent for over two years, she said, and getting them out of HUD with its limited resources and tools to deal with them is a positive step for homeowners. Only big banks can take on mortgages like that, she argued, making the nonprofit issue moot.
“The only way to help these borrowers is to sell the loans. You don’t have any other buyers big enough in size,” she said. “Even if you wanted to do something different, you couldn’t.”
Within that, though, Goodman credited HUD under Castro for making “some really big improvements.”
Not nearly enough, according to Gordon.
“Both HUD and [the Federal Housing Finance Agency] have let down communities by not focusing on what they want the buyer to do with these,” Gordon said, arguing that they’ve been focused instead on offloading the debt. “They’re just like, ‘Get it away from me.’”
The idea that Castro would be the first Latino on a national ticket means something, Nelson said, though he argued that this only adds to the burden for the secretary to show leadership on the mortgage issue in the way progressives want at this moment of added attention to their concerns.
Nelson said that at Presente, they think of it like a parable — it doesn’t make it any better to be hurt if the hurt is coming from one of their own.
There are two trees in a forest, Nelson said, and they see an ax coming to chop them down. “Don’t worry,” says one tree to the other, “the handle’s one of us.”
“Basically,” Nelson said, “we’re fighting to make sure Castro isn’t the handle.”
By Edward-Isaac Dovere
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Watch the video for Death Cab For Cutie's new anti-Donald Trump song Read more at http://www.nme.com/news/death-cab-for-cutie/97016#EkDo9zizovyxV1uy.99
Watch the video for Death Cab For Cutie's new anti-Donald Trump song Read more at http://www.nme.com/news/death-cab-for-cutie/97016#EkDo9zizovyxV1uy.99
Death Cab For Cutie have released a new anti-Donald Trump song. The track, 'Million Dollar Loan', is one of...
Death Cab For Cutie have released a new anti-Donald Trump song.
The track, 'Million Dollar Loan', is one of 30 tracks being released over the next 30 days in the final run in to the US Presidential election. Watch the video below.
Other artists who will feature on the anti-Trump '30 Days, 30 Songs' compilation, include My Morning Jacket’s Jim James, Aimee Mann and Thao Nguyen. A previously unreleased live track by R.E.M will also feature.
"Lyrically, 'Million Dollar Loan' deals with a particularly tone deaf moment in Donald Trump's ascent to the Republican nomination,” said Death Cab For Cutie frontman Ben Gibbard. "While campaigning in New Hampshire last year, he attempted to cast himself as a self-made man by claiming he built his fortune with just a 'small loan of a million dollars' from his father. Not only has this statement been proven to be wildly untrue, he was so flippant about it. It truly disgusted me.
“Donald Trump has repeatedly demonstrated that he is unworthy of the honour and responsibility of being President of the United States of America, and in no way, shape or form represents what this country truly stands for. He is beneath us."
You can purchase 'Million Dollar Loan' here. All of 30 Days’ proceeds will go to the Center for Popular Democracy and their efforts toward Universal Voter Registration in America.
Earlier today (October 10), the music world reacted to the second US Presidential town hall debate with Hillary Clinton and Donald Trump.
By DAMIAN JONES
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Why are former Toys R Us workers planning to protest CalSTRS’ investments of private equity?
Why are former Toys R Us workers planning to protest CalSTRS’ investments of private equity?
Supporting the workers are Rise Up Retail, the Center for Popular Democracy and the Organization United for Respect....
Supporting the workers are Rise Up Retail, the Center for Popular Democracy and the Organization United for Respect.
Read the full article here.
Unemployed Take Their Case to Fed Officials at Jackson Hole
Reuters - August 23, 2014, by Michael Flahery - Reginald Rounds was among those present at the Federal Reserve's high-...
Reuters - August 23, 2014, by Michael Flahery - Reginald Rounds was among those present at the Federal Reserve's high-flying monetary conference here, enjoying the chance to button hole two top officials of the U.S. central bank.
The St. Louis resident is neither an economist nor a central banker. He's a 57-year-old unemployed worker, who said he is trained in the green technology field and can't find a job.
He was among a group of activists who gathered on the sidelines of the Fed's annual symposium wearing green t-shirts with "What Recovery?" on the front and a chart depicting sluggish U.S. wage growth on the back.
"From the world where I reside, there is no recovery. We need a boost. We need a jump start," said Rounds. "The key is jobs creation."
The ten activists, most of whom were unemployed and seeking jobs, were sent as emissaries for a coalition of advocacy groups that has launched an unusual campaign from the left to press the U.S. central bank to keep monetary policy easy.
The coalition, consisting of more than 70 organizations, released an open letter to Fed officials earlier this week urging them to hold off on interest rate hikes until wages were rising more swiftly.
While small in number, the activists managed to get a great deal of face time with senior officials. On Thursday, they spoke with the host of the conference, Kansas City Federal Reserve Bank President Esther George, for two hours.
On Friday, Fed Vice Chairman Stanley Fischer stepped out of the conference to spend ten minutes to listen to their plight.
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3 days ago
3 days ago