Fed Up Coalition Complains About Jackson Hole Room Cancellations
Fed Up Coalition Complains About Jackson Hole Room Cancellations
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson...
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson Hole, Wyo., has filed a complaint with the National Park Service, the Department of the Interior’s Inspector General’s Office and the Justice Department after the conference hotel canceled the group’s room reservations.
The Center for Popular Democracy’s Fed Up Coalition said in an Aug. 9 letter that it booked 13 rooms in May at the Jackson Lake Lodge for its members for the nights of Aug. 24, 25 and 26. Last month, the lodge informed the group that their reservations had been canceled because of a “computer glitch,” according to the letter.
But the lodge didn’t cancel the reservations for other guests who booked after Fed Up did, said the letter written by Ady Barkan, campaign director of Fed Up, a left-leaning group that has lobbied for more diversity among Fed officials and more openness about the selection of regional Fed bank presidents.
“It is very hard for me to interpret the Company’s actions as anything other than a specific targeting of the Fed Up coalition,” he wrote in the letter.
Mr. Barkan said the group booked rooms at other hotels farther away from the conference, which will make it difficult for activists to attend events.
The Jackson Hole conference draws central-bank officials and economists from around the world who gather near the Grand Tetons to discuss monetary policy.
Fed Up members have been attending the conference for the past two years to urge Fed officials to hold off on raising interest rates, arguing that higher borrowing costs will slow economic growth and hurt low-income households. The group’s members often hold events and rallies near Fed events, wearing their signature green T-shirts.
A spokesperson for the Jackson Lake Lodge didn’t return a call for comment. Kathy Kupper, a spokeswoman for the National Parks Service said the lodges are run by independent contractors who are responsible for their day-to-day operations.
Mr. Barkan said he was writing the letter “to file a formal complaint regarding improper and potentially illegal behavior,” by the company.
By David Harrison
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BERNANKE’S FORMER ADVISOR: “PEOPLE WOULD BE STUNNED TO KNOW THE EXTENT TO WHICH THE FED IS PRIVATELY OWNED”
BERNANKE’S FORMER ADVISOR: “PEOPLE WOULD BE STUNNED TO KNOW THE EXTENT TO WHICH THE FED IS PRIVATELY OWNED”
With every passing day, the Fed is slowly but surely losing the game. Only it is not just former (and in some cases...
With every passing day, the Fed is slowly but surely losing the game.
Only it is not just former (and in some cases current) Fed presidents admitting central banks are increasingly powerless to boost the global economy, even if they still have sway over capital markets. What is far more insidious to the Fed’s waning credibility is when former economists affiliated with the Fed start repeating mantras that until recently were only a prominent feature in the so-called fringe media.
This is precisely what happened today when former central bank staffer and Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012, joined with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public.
Levin is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts.
All of that is not surprising. What he said to justify his new found cause, however, is.
“A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.”
Why is that stunning? Because it has long been a bone of contention if only among the fringe media, that at its core the Fed is merely a private institution, beholden only to its de facto owners: not the people of the U.S. but to a small cabal of banks. Worse, the actual org chart of who owns what is not disclosed, even as the vast majority of the U.S. population remains deluded that the Fed is a publicly owned institution.
As the WSJ goes on to note, the former central bank staffer said he sees his ideas as designed to maintain the virtues the central bank already brings to the table. They aren’t targeted at changing how policy is conducted today. “What’s important here is that reform to the Federal Reserve can last for 100 years, not just the near term,” he said.
And this is coming from a former Fed employee and Ben Bernanke’s personal advisor! That in itself is a most striking development, because now that the insiders are finally speaking up, it will be a race among both current and prior Fed workers to reveal as much dirty laundry as possible ahead of what is increasingly being perceived by many as the Fed’s demise.
To be sure, Levin’s personal campaign for Fed transformation will not be easy, and as the WSJ writes, what is being sought by Mr. Levin and the activists is significant and would require congressional action. Ady Barkan, who leads the Fed Up campaign, said the Fed’s current structure “is an embarrassment to America” and Fed leaders haven’t been “willing or able” to make changes.
Specifically, Levin wants the 12 regional Fed banks to be brought fully into the government. He also wants the process of selecting new bank presidents—they are key regulators and contributors in setting interest-rate policy—opened up more fully to public input, as well as term limits for Fed officials.
This would represent a revolution to the internal staffing of the Fed, which will no longer be at the mercy of its now-defunct shareholders, America’s commercial banks; it would also mean that Goldman Sachs would lose all its leverage as the world’s biggest central bank incubator, a revolving door relationship which has allowed the Manhattan firm to dominate the world of finance for the decades.
Levin’s proposal was made in conjunction with the Center for Popular Democracy’s Fed Up coalition, a group that has been pressuring the central bank for more accountability for some time. The left-leaning group has been critical of the structure of the regional banks, and has been pressing the Fed to hold off on raising rates in a bid to make sure the recovery is enjoyed not just by the wealthy, in their view.
The proposal was revealed on a conference call that also included a representative from Bernie Sanders’s presidential campaign, although all campaigns were invited to participate.
The WSJ adds that according to Levin, who knows the Fed’s operating structure intimately, says the members of the regional Fed bank boards of directors, the majority of whom are selected by the private banks with the approval of the Washington-based governors, should be chosen differently. The professor says director slots now reserved for financial professionals regulated by the Fed should be eliminated, and that directors who oversee and advise the regional banks should be selected in a public process involving the Washington governors and local elected officials. These directors also should better represent the diversity of the U.S.
Levin also wants formal public input into the selection of new bank presidents, with candidates’ names known publicly and a process that allows for public comment in a way that doesn’t now exist. The professor also wants all Fed officials to serve for single seven-year terms, which would give them the needed distance from the political process while eliminating situations where some policy makers stay at the bank for decades. Alan Greenspan, for example, was Fed chairman from 1987 to 2006.
As the WSJ conveniently adds, the selection of regional bank presidents has become a hot-button issue. Currently, the leaders of the New York, Philadelphia, Dallas and Minneapolis Fed banks are helmed by men who formerly worked for or had close connections to investment bank Goldman Sachs.
Levin called for watchdog agency the Government Accountability Office to annually review and report on Fed operations, including the regional Fed banks. He also wants the regional Fed banks to be covered under the Freedom of Information Act. A regular annual review hopefully would insulate the effort from perceptions of political interference, Mr. Levin said.
* * *
While ending the Fed may still seem like a pipe dream, at least until the market’s next major crash at which point the population may finally turn on the culprit behind America’s serial boom-bust culture, the U.S. central bank, Levin’s proposal would get to the heart of the most insidious conflict of interest in the US: the fact that the Federal Reserve works not for the people of America, but for its owners – the banks.
Which is also why, sadly, this proposal will be dead on arrival, as its passage would represent the biggest loss for Wall Street in the past 103 years, far more significant than anything Dodd-Frank could hope to accomplish.
By Zero Hedge
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In Minneapolis, a Strong ‘Fair Scheduling’ Law for Workers Runs Into a Corporate Roadblock
Less than a year after San Francisco passed a first-of-its-kind fair scheduling ordinance for retail employers,...
Less than a year after San Francisco passed a first-of-its-kind fair scheduling ordinance for retail employers, progressive activists in Minneapolis began pushing for an even stronger scheduling ordinance of their own—along with paid sick leave, wage theft protections, and the possibility of a $15 minimum wage.
But the campaign, dubbed the Working Families Agenda, ran into a roadblock earlier this month when its most powerful political ally, Mayor Betsy Hodges, decided to abandon the fair scheduling component. Language in the proposed ordinance called for scheduling notice of at least two weeks in advance and extra “predictability pay” for workers who were scheduled after that threshold.
Those requirements quickly awoke the local business lobby, typically a fairly dormant political power in a city with a strong progressive streak. In late September, opponents formed the Workforce Fairness Coalition by the Chamber of Commerce, and included prominent members like the Minnesota Business Partnership (which represents about 80 businesses, including Target, U.S. Bancorp and Xcel Energy) and the Minnesota Restaurant Association. They took specific issue with the scheduling law, saying that it would impede operations and could force businesses to flee the city.
Many progressive activists don’t buy that argument.
“We heard the same arguments from the Chamber of Commerce that are being made in Minneapolis,” says Gordon Mar, who led the campaign to pass San Francisco’s Retail Worker Bill of Rights, which includes fair scheduling. “As we’ve been implementing the law, those arguments have proven to be just as hollow as they were in business’s opposition to other worker-friendly laws."
Minneapolis Mayor Betsy Hodges ran in 2013 on a campaign that promised to directly address the city’s stark racial disparities, aspiring for a “One Minneapolis.” The city has some of the largest gaps in the country between whites and people of color for a number of indicators including rates of high school graduation, homeownership, low-level arrests and employment.
Those disparities are rampant in the workplace, too. For example, 63 percent of white workers in Minneapolis have access to earned sick time compared with just 32 percent of Latino workers. A Minnesota Department of Health report found that 79 percent of food workers—many of whom are minorities—lacked paid sick time.
In her 2015 State of the City address just six months ago, Hodges outlined an agenda she said would address economic disparities, specifically calling for an ambitious plan to implement fair scheduling, wage theft protection and paid sick leave. But since then, Hodges appears to have taken business’s concerns to heart.
“When it comes to fair, predictable scheduling, I have heard from many people, including many business owners, that the issue is complicated and that more time is needed to engage in this important issue,” the mayor said in a statement on October 14. “As a result, I have come to the conclusion that we are not in a position to resolve the concerns satisfactorily on the timeline currently contemplated.”
While Hodges pledged to continue pushing for paid sick leave and wage theft enforcement, activists felt blindsided by her sudden retreat.
“Our progressive champions were not prepared for the pushback and frankly folded under the pressure, … caving to conservative business elements,” says Anthony Newby, executive director for Minnesota Neighborhoods Organizing for Change, a member of the coalition supporting these policies. “Where does [Hodges] want to be allied? With working people or with the worst actors of the business community?”
The day after Hodges’ announcement, about 300 people streamed into City Hall in downtown Minneapolis to reaffirm support for all aspects of the Working Families Agenda. Workers and organizers spoke about the daily burdens of low-wage work and how they contribute to the racial disparities that plague a city often portrayed as a progressive wonderland. Minneapolis NAACP President Nekima Levy-Pounds described the city’s situation as a tale of two cities: “It’s the best of times if you’re white and the worst of times if you’re black.”
While the scheduling law language had not been set in stone, many businesses were concerned with its details. At first, advanced notice for schedules was set at four weeks, which was eventually scaled back to two. For every change an employer made to a worker’s schedule within two weeks of the shift, that worker would earn an hour’s wage worth of “predictability pay.” For any schedule change within 24 hours of a shift, a worker would get four hours’ pay.
Opponents were quick to cast this as an unrealistic policy with a costly burden placed on employers, and would be completely unworkable for restaurants, retailers and many other businesses that they say are dependent on “flexible” scheduling models. Advocates are quick to point out, though, that current workplace scheduling standards put all the cost on workers. For example, if a worker relies on childcare during her shifts and an employer tells her to stay late, many childcare centers charge fees for late pickups; or, having already spent money on childcare and transit, she could arrive at work to find her shift has been cut.
On fair scheduling, says Elianne Farhat with the Center for Popular Democracy’s Fair Workweek Initiative, it’s clear there’s going to be a cost. “What gets lost in the conversation is that it’s not that there isn’t a cost right now— it’s just that the workers are bearing that cost,” Farhat says. “What [fair scheduling] is trying to do is balance that cost.”
Despite Hodges’ call for more time to parse out details on scheduling, activists aren’t backing off. Her announcement seems to have galvanized many local organizations that previously were on the fence. Organizers say they will continue to advocate for paid sick leave and wage theft protections in the immediate future while aiming for an eventual victory on fair scheduling.
Compromises will likely need to be made. While San Francisco’s scheduling law applied only to big chain stores, Minneapolis’s fair scheduling proposal is universal. That may need to be scaled back, according to activists: Some added flexibility for “predictability pay” requirements may be needed, and further discussion about phase-in periods for smaller businesses will likely be coming. But organizers say they didn’t expect an easy path to passing the strongest scheduling law in the country. In fact, at a city council meeting last week two members announced a plan to refer the proposed paid sick leave policy to a new committee made up of workers, labor leaders, employers and business associations that would meet in mid-November and hash out details.
“‘No’ is not an answer. The question is what does it take to get a yes,” says Newby. “We need to figure out what is that sweet spot that’s gonna work for us. That may take a little bit more time.”
Source: In These Times
Maria Gallagher, Ana Maria Archila and the amazing power of everyday people raising their voice
Maria Gallagher, Ana Maria Archila and the amazing power of everyday people raising their voice
Maria Gallagher, a 23-year-old woman from New York, had never told anyone about the time she was sexually assaulted...
Maria Gallagher, a 23-year-old woman from New York, had never told anyone about the time she was sexually assaulted before she blurted it out to a United States senator, Republican Jeff Flake of Arizona, with millions watching on live national television.
Read the full article here.
Fed more upbeat on economy, unclear on timing of rate hike
The Federal Reserve offered a slightly more upbeat assessment of the economy but provided little insight into when it...
The Federal Reserve offered a slightly more upbeat assessment of the economy but provided little insight into when it will raise its benchmark interest rate for the first time in nearly a decade.
Fed officials voted unanimously to keep the target rate at zero for now, after wrapping up their regular two-day policy-setting meeting in Washington on Wednesday afternoon. In a carefully worded statement, the central bank noted that the economy has expanded “moderately.” It pointed to solid job gains and lower unemployment as signs that the labor market has improved, adding that underemployment has also diminished.
Perhaps most important, the Fed characterized the risks to its outlook for the economy as “nearly balanced” — the same description it used after its previous meeting. Some analysts believe that the Fed will move once the risks are weighted more evenly.
U.S. stock markets spiked after the release of the Fed statement but quickly settled back down. Both the blue-chip Dow Jones Industrial Average and the broader Standard & Poor's 500 average were up about half a percentage point in mid-afternoon trading.
Fed Chair Janet Yellen has said several times that she expects the central bank will raise its benchmark federal funds rate before the end of the year, a move that would herald the end of the central bank’s unconventional — and controversial — efforts to resuscitate the American economy.
Many investors and economists believe the moment will come during the Fed’s meeting in September, which would be followed by a news conference allowing Yellen to explain the central bank’s decision more fully. But a vocal minority think the Fed will wait to move in December, the next meeting with a scheduled news conference. A few economists — including two officials within the central bank — believe the Fed should hold off until 2016 to be sure the recovery is solid.
Fed officials have debated how strong of a signal to send as the moment of liftoff nears. But the central bank has repeatedly emphasized that its decision will depend on the evolution of economic data — and so investors should look to the numbers for the green light for action.
A key figure will be the government’s estimate of second quarter economic growth slated for release Thursday. Falling oil prices, a strong dollar and a sharp slowdown in the growth of consumer spending helped drive an unexpected contraction in the economy over the winter. Fed officials are hoping that second quarter GDP growth will prove the dip was merely temporary.
A stronger reading would also align with the pickup in hiring over the past two months. Unemployment is nearing its lowest sustainable level, making some officials antsy for the Fed to start tapping the brakes on the economy.
But others have argued that exceptionally low inflation means the Fed has plenty of time to act. Price growth remains well below the central bank’s 2 percent target, and officials have said they want to be “reasonably confident” it is moving up before tightening policy. In June, the central bank had stated that energy prices “appear to have stabilized.” But on Wednesday, it cited further declines in energy prices, along with the falling price of imports, as reasons inflation has remained low.
The Fed slashed its target interest rate to zero when the country was in the grips of the financial crisis in 2008, and it has stayed there ever since. In addition, it pumped trillions of dollars into the economy in an effort to lower longer-term rates and spur borrowing among consumers and investment among businesses. Unwinding those policies will likely take years.
Meanwhile, the Fed is facing renewed scrutiny in Congress. The House Financial Services committee on Wednesday passed a bill that would require the central bank to explain when it deviates from certain monetary policy models, disclose more information on salaries and allow for audits of the Fed's decision-making process. Another bill sponsored by Texas Republican Rep. Kevin Brady would create a commission to examine the Fed, which recently celebrated its centennial.
“The Fed is trying to do too much,” Brady said in an interview. “It can be the right tool, but not for everything and everybody.”
The central bank is also facing pressure from the other end of the political spectrum. A coalition of community activists and labor groups is urging the Fed to leave its target rate unchanged amid elevated unemployment rates among minorities.
“Until we reach genuine full employment, there is no reason for the Fed to contemplate putting people out of work and slowing down our economy via interest rate hikes,” the Fed Up campaign said in a statement.
Source: The Washington Post
Loan market shrugs off prison financing protests
Advocacy groups in New York gathered Wednesday near JP Morgan Chief Executive Officer Jamie Dimon’s apartment, calling...
Advocacy groups in New York gathered Wednesday near JP Morgan Chief Executive Officer Jamie Dimon’s apartment, calling on the bank to stop lending to private prison and immigration detention companies, according to the Center for Popular Democracy, one of the protest organizers.
Read the full article here.
Report Shows Unemployment Rate in Twin Cities 4x Higher for Blacks than Whites
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national...
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national day of action, showing that the unemployment rate for Blacks in the Twin Cities is four times higher than for whites, calling on the Federal Reserve to prioritize full employment in all communities. "Minnesota is a great place to live, if you're white," said NOC executive director Anthony Newby. "The unemployment rate is 2.8%. But for black folks, unemployment is over ten percent--crisis levels. The Federal Reserve is considering raising interest rates because Wall Street thinks the economy has recovered. But that would only increase unemployment, especially in communities of color."
"Historically, the African-American community has been cut out of opportunities the government was supposedly providing to everyone--for example, homeownership programs that African-Americans could not participate in, public education programs that African-Americans were either cut out of or cut short, livable wage jobs that African-Americans would not be considered for," said Pastor Paul Slack, pastor of New Creation Church in Minneapolis and President of ISAIAH. "It's time for the Federal Reserve to act specifically in the interest of the African-American community and other low-income communities, by keeping interest rates low so that we can rebuild the wealth that was stolen from us through this recent economic crisis."Joe Elliott worked at the Target Center for five years until he was unexpectedly laid off. "I liked the job--I met a lot of great people, and went to concerts and games. But I didn't like the money. I deserve more than $8.40/hour. It wasn't supporting my daily living--bills, kids, transportation. But it's hard looking for a job as an African-American male.""The Minneapolis Fed President, Narayana Kocherlakota, has expressed support for keeping interest rates low," said Anthony Newby. "That's great. But he's also retiring in a year. We need an open and transparent process for community input on the next Minneapolis Fed president."The Federal Reserve has a key policymaking meeting coming up in mid-March.
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Ulster County Legislator Calls for Equity and Accountability in School Funding
Mid-Hudson News - December 29, 2014 - It took a 2007 Federal lawsuit to ensure equity in New York State school aid...
Mid-Hudson News - December 29, 2014 - It took a 2007 Federal lawsuit to ensure equity in New York State school aid funding to local districts. Over the course of the past six years, Ulster County school districts received close to $26 million or at least they would have, had the State actually implemented the promised foundation aid. Instead, the foundation aid was frozen as part of the State's budget process.
"Ulster County tax payers have been paying more and more to ensure education for all," said County Legislator David Donaldson (D, Kingston). "Yet, the State has balanced its budget without paying its promised share. The State leadership has to stop talking about supporting the future of our State and actually pay for what they promised."
Over a billion dollars are being given to serve the 3% of student population that attend Charter Schools in New York State for 2014. $54 million is estimated by a Center for Popular Democracy's report to be lost because of charter school fraud and abuse in 2014 alone. Only eighteen of the sixtytwo counties in New York State have a charter school. Ulster County has no charter schools.
"I am all for helping parents to ensure their children receive the quality education they deserve," said Donaldson. 'That quality education starts with the public education system that serves 85% of New York State's children. Until the State leaders provide the funding that will address the educational gaps in public education and ensure the oversight and accountability of private charter school education, no taxpayer dollars - whether State or local taxes - should be spent on privately run schools that are not held to the same standards or expectations as the public school system."
Donaldson wants the County Legislature to consider the measure at their January 9 session.
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In New York, a Bill to Grant Undocumented Immigrants State Citizenship
Bloomberg Businessweek - June 16, 2014, by Josh Eidelson - While Congress drags its feet on immigration reform, New...
Bloomberg Businessweek - June 16, 2014, by Josh Eidelson - While Congress drags its feet on immigration reform, New York State lawmakers are mulling an immigration bill of their own: It would grant state citizenship to some noncitizen immigrants, including undocumented residents, allowing them to vote and run for office. Under the New York Is Home Act, noncitizen residents who have proof of identity and have lived and paid taxes in the state for three years could apply for legal status that would let some qualify for Medicaid coverage, professional licensing, tuition assistance, and driver’s licenses, as well as state and local—but not federal—voting rights. The responsibilities of citizenship would also apply, including jury duty.
“It’s mind-boggling,” says Michael Olivas, a professor at the University of Houston Law Center who specializes in immigration law. “I don’t believe there’s ever been a serious attempt to codify so many benefits and opportunities.”
Democratic State Senator Gustavo Rivera, who’s sponsoring the legislation, sees it as a precedent. “We have a bill here that could be a model of what we need to do across the country,” he says. Rivera acknowledges the bill “certainly will not pass this session,” comparing it to same-sex marriage, a cause which took years to travel from fringe to mainstream. But he expressed hope that the primary defeat of Republican House Majority Leader Eric Cantor of Virginia, widely construed as a final nail in the coffin of near-term federal immigration reform, would create interest in state-level reforms like his. Democratic Assemblyman Karim Camara is introducing the same bill on the other side of the Capitol. Governor Andrew Cuomo’s office did not immediately respond to a request for comment.
If it did pass and Cuomo signed it—again, not at all likely—the new law would certainly be challenged in court. Olivas says some aspects of the bill are on safe ground (in-state tuition for undocumented students has become widespread), while others involve “unsettled or untested” areas of the law. Olivas says that by “appropriating the term ‘citizen,’” a word he says “is really truly a federal term,” the bill’s authors have made it more vulnerable to legal challenge.
The state law wouldn’t trump federal immigration statutes, so undocumented workers in New York would still be denied some important benefits of citizenship. One big example: They’d be subject to federal laws barring them from legally working in the U.S.
Supporters insist the bill, unlike Arizona’s largely overturned SB 1070, is well within the law. “The problem with the Arizona law and the copycat laws around the country is that they were intruding upon the unique province of the federal government to determine who gets to enter the United States and who gets deported,” says Peter Markowitz, a professor at New York’s Benjamin N. Cardozo School of Law. He says the bill, which he helped draft, is instead “exercising a firmly established, constitutionally enshrined authority of the state to determine the boundaries of its own political community” and is consistent with Supreme Court precedents that recognize “state citizenship” as well as “federal citizenship.”
“The very nature of our dual-sovereign federal structure,” says Markowitz, “means that New York gets to decide who are New Yorkers.”
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A New Divestment Movement Against Trump Gears Up
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But...
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But the ultimate goal is to help build a mass movement against the White House.
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7 days ago
7 days ago