‘Our Town’ benefit raises $500,000 for Puerto Rico
‘Our Town’ benefit raises $500,000 for Puerto Rico
A SUPERHERO EFFORT on Monday night at the Fox Theatre raised more than $500,000 for hurricane relief in Puerto Rico....
A SUPERHERO EFFORT on Monday night at the Fox Theatre raised more than $500,000 for hurricane relief in Puerto Rico.
The event: a starry staged reading of Thornton Wilder’s great American play Our Town, organized by actor Scarlett Johansson and directed by True Colors Theatre’s Kenny Leon.
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New Website Holds US Companies Accountable for Backing Trump
New Website Holds US Companies Accountable for Backing Trump
"Major corporations stand to profit from Trump's hateful agenda. That's why we call them Backers of Hate," the website...
"Major corporations stand to profit from Trump's hateful agenda. That's why we call them Backers of Hate," the website states.
A new campaign, Corporate Backers of Hate is looking to expose the role some U.S. corporations are playing in profiting from the abuses suffered by the communities of color under the Trump administration.
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Clinton offers fresh support for key progressive priorities
Clinton offers fresh support for key progressive priorities
Over the course of the race for the Democratic presidential nomination, Hillary Clinton hasn’t had a whole lot to say...
Over the course of the race for the Democratic presidential nomination, Hillary Clinton hasn’t had a whole lot to say about the Federal Reserve or monetary policy in general, which is why it was all the more interesting to see the Democratic frontrunner’s campaign yesterday endorse a change long sought by progressive activists. The Washington Post reported:
The Fed is led by a seven-member board of governors based in Washington and a dozen regional bank presidents based across the country, from New York to Kansas City to San Francisco. The governors are nominated by the White House and approved by the Senate, but regional bank presidents are selected by their boards of directors, whose occupants are chosen by the banking industry and by the Fed governors in Washington.
In a statement to The Washington Post, Clinton’s campaign said she supports removing bankers from the boards of directors and increasing diversity within the Fed.
In a written statement, a campaign spokesperson told the Post, “The Federal Reserve is a vital institution for our economy and the well-being of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That’s why Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms – like getting bankers off the boards of regional Federal Reserve banks – are long overdue.”
This brings Clinton in line with Bernie Sanders, who endorsed this policy late last year, saying he wants a system in which “the foxes would no longer guard the henhouse.”
The statement also came the same day Clinton wrote an op-ed for the Washington Informer, an African-American newspaper, vowing to be a “vocal champion” for D.C. statehood.
“In the case of our nation’s capital, we have an entire populace that is routinely denied a voice in its own democracy,” Clinton wrote, adding, “Washingtonians serve in the military, serve on juries, and pay taxes just like everyone else. And yet, they don’t even have a vote in Congress.”
Earlier this week, Clinton also emphasized her support for a “public option” in health care coverage, including a possible Medicare buy-in policy.
The broader pattern matters, and it’s not altogether expected.
When Clinton’s campaign got underway nearly a year ago, the former Secretary of State started laying out her platform, and on a variety of issues – immigration, criminal-justice reform, expanding voting rights, etc. – the Democrat not only endorsed progressive ideas, she endorsed an agenda that was even more ambitious and further to the left than many expected.
At the time, of course, the question that loomed over the race dealt with motivation: was Clinton throwing her support behind a series of bold proposals because she was worried about Bernie Sanders, or was she serious about these plans? It’s one thing to make appeals to the left as the Democratic race gets underway, but would Clinton follow through when she shifts her attention to the general election?
The answer to these questions is coming into sharper focus. While the Democratic race still has some primaries to go, the delegate math suggests Clinton is well positioned to prevail, and she’s already begun shifting her attention to Donald Trump and the fall election. If the cynics were correct, this would be about the time we’d expect to see Clinton move gradually towards the center, eschewing some of her more progressive goals.
Except this week, we’re seeing the opposite, with Clinton backing Sanders-endorsed changes to the financial industry and touting her support for a public option.
Maybe Clinton is hoping to win over Sanders’ ardent fans who aren’t yet ready to back her candidacy in the fall. Maybe she believes these progressive goals are popular enough with the American mainstream that she’s not really taking much of a risk. Maybe she actually believes what she’s saying and none of this is calculated in any meaningful way.
Whatever the motivation, Clinton may be focusing her attention on the general election, but many of her key progressive ideals, at least for now, remain very much intact.
By Steve Benen
Source
Janet Yellen’s Future at the Fed Unresolved Heading Into Jackson Hole
Janet Yellen’s Future at the Fed Unresolved Heading Into Jackson Hole
The prospect of a second term for Federal Reserve Chairwoman Janet Yellen won't be on the agenda at the central bank's...
The prospect of a second term for Federal Reserve Chairwoman Janet Yellen won't be on the agenda at the central bank's annual retreat this week at Grand Teton National Park, but the question of whether she could be asked to stay on -- and whether she would accept -- will be hanging over the confab.
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Why retailers are moving away from ‘on-call’ shift scheduling
Why retailers are moving away from ‘on-call’ shift scheduling
For more than two decades, workers in the retail and restaurant industries have struggled to balance family life and...
For more than two decades, workers in the retail and restaurant industries have struggled to balance family life and other obligations with jobs that demand they be “on call.” Now, under legal pressure and in a tightening labor market, some employers are changing their approach.
On Tuesday, the New York Attorney General’s office announced that six retailers – Aeropostale, Carter’s, David’s Tea, Disney, PacSun, and Zumiez – have agreed to end “on-call” scheduling. From now on, their employees will not need to check each day whether they should come to work, nor do they risk being sent home early without pay when the store is quiet. Four of the companies also committed to giving employees their schedules one week in advance.
Ending “on-call” scheduling will make a big difference for employees, increasing the predictability of work schedules and making it easier to plan other activities. But they aren’t the only ones who will benefit from the change, observers say: It could also bring long-term benefits for businesses and society.
“It’s a pretty significant move,” Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, tells The Christian Science Monitor in a phone interview. “Retail companies ... are really starting to recognize that they need to invest in their workforce.”
In the past, workers’ wages were considered a fixed cost, wrote Robert Reich, who served as Labor secretary during Bill Clinton’s presidency and is now a professor of public policy at the University of California at Berkeley. In the 1990s, however, wages became a variable cost: Many businesses used on-call scheduling to trim costs by having as few workers as possible. Some even deployed software systems that highlighted the times when employees were least needed.
That kind of scheduling takes a substantial toll on workers, explains Lonnie Golden, a professor of economics and labor-employment relations at Penn State University-Abington, in a phone interview with the Monitor. Professor Golden was the primary author of an April report for the Economic Policy Institute about the consequences of irregular work scheduling.
Uncertain hours make it hard for workers to plan their daily lives, says Golden. Holding down a second job becomes more difficult, uncertain paychecks mean incomes often fall short, and childcare is an increased challenge.
These employees are most likely to experience “work-life conflict” and be stressed at work, Golden notes.
That also puts businesses with “on-call” scheduling on the wrong side of some state and federal labor laws. In April, New York Attorney General Eric Schneiderman and the attorneys general of seven other states and the District of Columbia sent a letter to the six retailers asking them to end the practice, as they have now agreed to do.
Ms. Gleason points to that April letter and other, similar investigations as the "single most influential factor" in moving businesses away from these scheduling practices. Seven other businesses announced that they would end "on-call" scheduling in 2015.
But with a new presidential administration kicking off in a few weeks, the future of these investigations is uncertain.
“The incoming Labor Secretary is [at] the complete opposite end of the spectrum,” Gleason says, making it “incumbent now on states” to continue pushing for these standards.
Worker-friendly policies are becoming bipartisan causes in many states, the Monitor’s Schuyler Velasco wrote in October – and New York is one of several states working toward a legislative ban on “on-call” scheduling. In September, Seattle's city council unanimously passed a “secure scheduling” law, which requires employers to schedule their workers 14 days in advance, and includes a "right to rest" provision that allows workers to decline closing and opening shifts that are less than 10 hours apart.
Businesses themselves may have incentives to end on-call scheduling. In a tightening labor market, employers want to hang on to their workers, notes Golden, who is also a senior research analyst at the Project for Middle Class Renewal at the University of Illinois. And businesses that offer better hours – and more consistent hours – are more appealing to workers, leading to better retention.
The more businesses sign on to these measures, the more workers’ wages are taken out of the cost-cutting equation. More than 300,000 workers have been impacted so far, says Gleason.
Greater certainty about schedules has benefits beyond individual workers, she says. If people know when they’re working, they can also schedule time to be with their children, or attend college and grad school classes.
“Employees are going to be better off, and maybe even society,” she says.
By Ellen Powell
Source
Wall Street, Main Street, and Martin Luther King Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full Employment Mandate
Executive Summary The story of the economic recovery varies dramatically depending on where it is being told. On...
The story of the economic recovery varies dramatically depending on where it is being told. On Wall Street, big banks look stronger, bigger, and healthier than ever. Large companies are making record profits. But, the labor market remains weak. Although the economy has added more jobs in recent months, job growth on Main Street is not nearly as robust as during previous recoveries.[i] Unemployment rates in nearly every state remain above pre-recession levels. Wages have been stagnant or falling for most workers and the quality of jobs has decreased significantly. Main Street still has no clear route to prosperity.
Dowload the report now.
Many communities are disproportionately struggling in this economy. The Latino unemployment rate is more than 2 percent higher than the rate for whites, and Latino wages and wealth are considerably lower than whites. Women continue to earn substantially less than men. This paper focuses on the economic disparities facing the African-American community in particular because the economic crisis is most acute there: African-American unemployment rates continue to exceed the national unemployment rates at the height of the recession, Black workers’ wages have dropped $0.44 over the past 15 years, though Latino and white wages have risen by $0.48 and $0.45, respectively; unemployment rates among African Americans are higher than those of other racial or ethnic groups; and, though Latino and white wealth has stabilized since the Great Recession, Black wealth continues to shrink. So, while Main Street may be stabilizing (albeit at a lower standard), the recovery has yet to reach Martin Luther King Boulevard. Creating a strong American economy must include prioritizing a genuine recovery for the African American community.
This joint report of the Center for Popular Democracy and the Economic Policy Institute examines the current state of the American economy and labor market, with particular attention to racial inequality and its contours before, during, and in aftermath of the Great Recession. It describes the role that federal monetary policy has played in exacerbating economic disparities over recent decades -- the shrinking national income share for working America and the exploding income and wealth gaps between the top 1 percent and the rest of us. The paper further explores the consequences of the major policy decision currently facing the Federal Reserve (or the Fed): whether to prioritize genuine full employment or to avoid inflation at the cost of robust employment and wage gains. Only by pursuing genuine full employment will the Fed ensure that the recovery reaches Main Street and Martin Luther King Boulevard – and communities of working people throughout the country. As the Fed makes crucial monetary policy decisions in the months and years to come, it must ensure that all communities can share in the prosperity of a functional economy.
The report also studies the decision-making processes and bodies of the Federal Reserve. Although the Board members that govern the regional Federal Reserve banks are legally required to represent the broad interests of the public, they are, in fact, predominantly representatives of the financial sector or large corporations. Without governance that represents the full diversity of the public, Fed decisions risk remaining uninformed by the full economic reality they create, as experienced in communities throughout the country. The Federal Reserve’s focus over the past 35 years has been on price stability, or tamping down inflation. While this focus is good for Wall Street, it has resulted in wage stagnation for most workers on Main Street. The cost of this focus has been slow recoveries in labor markets after each downturn. America needs the Federal Reserve to concentrate on labor market stability and insure that wages are rising with productivity, so that workers reap the benefits from their efficiencies and hard work; that means prioritizing a wage growth target, rather than inflation. A Federal Reserve dominated by banks and major corporations will produce an economy that works for them, at the risk of leaving tens of millions of working families – particularly Black working families – with little hope of a better life.
The report recommends that the Fed:
Create a Strong & Fair Economy
Stimulate Good Jobs for All: The Federal Reserve should commit to building a full employment economy. It should keep interest rates low so that the numbers job openings and job seekers are balanced and everybody who wants to can find a good job.
Invest in the Real Economy: The Fed should use its existing legal authority to provide low- and zero-interest loans so that cities and states can invest in public works projects like renewable energy generation, public transit, and affordable housing that will create good new jobs.
Research for the Public Good: The Fed should study the harmful effects of inequality and examine how policies like raising the minimum wage and guaranteeing a fair workweek can strengthen the economy and expand the middle class.
Create a More Transparent & Democratic Federal Reserve
Ensure That Working Families’ Voices Are Heard: Fed officials should regularly meet with working families and community leaders, not just business executives, in order to get a more accurate picture of how the economy is working.
Represent the Public: In regional banks around the country, Fed leaders come overwhelmingly from financial institutions and major corporations. The Fed should appoint genuine representatives of the public interest to these governance positions.
Create a Legitimate Process for Selecting Fed Presidents: In late 2015 and early 2016, the regional Fed banks will select their next presidents, who will serve five year terms. Currently, the process for selecting those presidents is completely opaque and involves no public input. That needs to change, so that the public has a real role in the selection process.
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[i] Dean Baker, “257,000 Jobs Are Great, but Those Wall Street Boys Are Really Smart” (blog post), Center for Economic and Policy Research, February 6, 2015, http://www.cepr.net/index.php/blogs/beat-the-press/257000-jobs-are-great....
Last Updated April 21, 2015.
Obscure Fed Tool Used to Hammer Yellen for Enriching Banks
Source:...
Source: Bloomberg Business
A tool Congress gave the Federal Reserve to control interest rates has become a hammer for lawmakers to bash the central bank.
Fed Chair Janet Yellen withstood bipartisan criticism at a congressional hearing on Wednesday over the policy of paying the largest financial institutions to keep more funds than required on deposit at the central bank. The Fed doled out $1.7 billion in interest on excess reserves -- known as IOER for short -- to banks in the third quarter.
Congress, which gave the Fed authority in 2008 to pay interest on excess reserves, may be having second thoughts. While the tool helps the Fed raise its benchmark interest rate and simultaneously maintain a $4.5 trillion balance sheet that policy makers say supports the economy, several lawmakers complained to Yellen that IOER is enriching Wall Street.
California Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, labeled the IOER payments a “massive transfer of wealth from the Federal Reserve to private-sector banks.” Committee Chairman Jeb Hensarling, a Texas Republican, called it a “subsidy.”
In a election year, Yellen was grilled on campaign issues ranging from income inequality to high rates of minority unemployment. Candidates such as Senator Bernie Sanders, a socialist from Vermont who won the New Hampshire Democratic primary Tuesday, are finding that Wall Street-bashing resonates with voters struggling with slow wage increases.
The Center for Popular Democracy, part of a coalition known as Fed Up, said it met with Waters in September and discussed why paying banks interest on excess reserves is troublesome.
‘Anti-Consumer’
“It was a tool that was given to the Fed without ever envisioning an environment of multi-trillion dollar excess reserves,” said Jordan Haedtler, campaign manager for the group. “It’s a pretty crude, anti-consumer tool that rewards big banks.”
Yellen defended the tool, noting that the flip side of the excess reserves are the Fed’s large asset holdings, which generated many more billions of dollars in remittances to the Treasury. She also warned that extinguishing reserves through asset sales could cause more volatility in financial markets and hurt growth.
“The Federal Reserve has transferred, since 2008 through 2015, roughly $615 billion back to Congress, to the taxpayers, to the Treasury, funds that have contributed importantly to financing the government,” Yellen said.
The Fed created hundreds of billions of excess reserves in the financial crisis as it began to rescue financial institutions such as Bear Stearns Cos. and conduct quantitative easing through direct bond purchases.
Normally, banks would try to dump some of the $2.3 trillion in excess reserves they now hold into overnight lending markets to try earning a return. That would swamp attempts by the Fed to control the federal funds rate and make raising rates difficult.
Bullard’s Warning
By paying a rate above its target rate for federal funds, the Fed can keep those funds out of the market and exert more control over its policy rate. To mop up other excess cash coming from sources other than commercial banks, the Fed uses another tool called reverse repurchase agreements where it uses securities as collateral for short-term loans of cash, thus removing it from the money markets.
The political liability of paying large sums of interest to private banks hasn’t been lost on Fed officials. St. Louis Fed President James Bullard said in August that the strategy would benefit from bipartisan support.
“It’s going to mean fairly large payments to the largest banks in the U.S. and to some foreign banks,” Bullard said in an August interview with Wharton Business Radio’s ”Behind the Markets” program on Sirius XM Radio. “If Congress is not comfortable with that, they should definitely tell us right now.”
Addressing Yellen during the hearing, Waters said, "It looks like we’re about to have some bipartisan concern on this issue."
The Fed chief responded, "I hear that."
KKR, Bain Create $20 Million Fund for Toys ‘R’ Us Workers
KKR, Bain Create $20 Million Fund for Toys ‘R’ Us Workers
Toys “R” Us shuttered its last stores at the end of June and its liquidation left more than 30,000 workers without...
Toys “R” Us shuttered its last stores at the end of June and its liquidation left more than 30,000 workers without expected severance payouts. That prompted months of lobbying by the employees, organized in part by advocacy groups linked to the Center for Popular Democracy. Those groups estimate that workers are owed $75 million in severance pay and they have pressed Toys “R” Us creditors Angelo Gordon and Solus Alternative Asset Management to contribute to the fund, but the hedge funds have so far declined.
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One of Facebook’s founders is taking on the Federal Reserve
Dustin Moskovitz and his wife, Cari Tuna, have become billionaires since he started the behemoth social networking site...
Dustin Moskovitz and his wife, Cari Tuna, have become billionaires since he started the behemoth social networking site with his former Harvard University roommate Mark Zuckerberg. (Moskovitz left the company in 2008 to found Asana, which streamlines task management). The couple is bringing Silicon Valley-style analytics to the world of philanthropy through their fund, Good Ventures.
The goal is to find and incubate projects with the potential to create the most change for every dollar of funding. Many of the fund’s initiatives tread traditional charitable ground. Good Ventures has backed research on the connection between crime, cannabis and incarceration and helped stop the spread of drug-resistant malarial parasites in Myanmar.
But the group is also broadening its reach into public policy issues, including macroeconomics. It has granted $850,000 to the Center for Popular Democracy over the past year to fund a campaign urging the Fed not to raise its target interest rate until the economy is much stronger. Good Ventures is the single largest backer of the campaign -- dubbed Fed Up -- whose budget this year is about $1 million.
“The central reason we believe that marginally more dovish Fed policy relative to the current baseline would carry net benefits is that, at roughly their current rates, we see unemployment as more costly in humanitarian terms than inflation,” Good Ventures wrote explaining its decision to fund the project. “Dovish” policy generally supports lower interest rates, while a “hawkish” stance would raise them.
The funding has helped the group expand its presence at an annual symposium of economic elite that kicked off Thursday here in the foothills of the Grand Tetons and sponsored by the Federal Reserve Bank of Kansas City. The group arrived at the conference last year with a handful of workersholding up signs and wearing green T-shirts.
This year, Fed Up held “teach-ins” in a meeting room at the same hotel as the Fed’s conference and drew prominent economists such as Nobel Prize winner Joseph Stiglitz, University of California-Berkeley professor Brad DeLong and Center for Economic and Policy Research Co-Director Dean Baker.
The campaign also flew in dozens of workers to underscore the disparity in the nation’s economic recovery. Wage growth has remained stagnant for years, and unemployment among black and Hispanic workers is significantly higher than that of whites.
“An economy that doesn’t deliver for most of its citizens is a failed economy,” Stiglitz said in a press conference in Jackson Hole.
Monetary policy has not traditionally been subject to populist activism, and Good Ventures acknowledges that the success of the campaign is uncertain at best. Fed Up is also working to increase public input in the selection of regional Fed presidents, an effort that Good Ventures rates as more unequivocably positive and, at the very least, easier to measure.
But, the funders note, if the campaign works -- and if easy money is indeed the way to go -- the payoff could be massive:
Our best guess is that the campaign is unlikely to have an impact on the Fed's monetary policy, but that if it does, the benefits from a tighter labor market would be very large; we think this small chance of a large positive impact is sufficient to justify the grant.
However, this is an unusually complex policy area, and we could be mistaken.
Source: Washington Post
Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank...
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank boards, though they couldn't agree on how to reform the quazi-private-public firms.
The twelve regional Fed banks have come under increased scrutiny in recent months after Democratic presidential nominee Hillary Clinton issued a statement in May saying she supports removing bankers from regional Fed boards and increasing director diversity. Her comments heightened the public profile of an issue that otherwise hasn't received much focus.
A key point of debate was concerns by consumer groups that having bankers on regional Fed boards creates a conflict of interest since reserve bank staff supervise big and small commercial banks in their districts. This contrasts to the central bank in Washington, which is a government agency with governors that are nominated by the president and confirmed by the Senate.
For example, among the nine directors who serve on the New York Fed board are Morgan Stanley (MS) CEO James Gorman and two community bank chief executives.
House Republicans indicated during a subcommittee hearing of the House Financial Services Committee that they weren't overly concerned by bank CEOs serving on such quasi-private boards while Democrats questioned the diversity of the panels.
"I don't object to bankers being on the boards," Gwen Moore, D-Wisc., told reporters after the hearing. "I'm concerned about the voice of other directors who are there and their efficacy to participate fully and about mobilizing and empowering them once they are there."
Moore, the top Democrat on the Monetary Policy and Trade subcommittee, said she the boards need more diversity, noting that none of them have hired a Latino or African American as president of the regional Fed banks where they serve.
Meanwhile, demonstrators from a consortium of consumer groups calling itself "Fed Up" attended the hearing, dressed in green shirts with slogans such as "16 of 17 Fed leaders are white."
The group also took issue with bankers on the regional Fed boards and, in their view, a lack of board diversity.
"When these voices are excluded from the conversation, then our interests are excluded," Ruben Lucio, a representative from the Center for Popular Democracy and a member of Fed Up, told reporters outside of the hearing.
According to current rules, regional boards have nine directors divided into three classes. Three banking directors are elected by member banks, another three are designated by the same banks to represent the public and interests of commerce, industry, labor and consumers, and the final class is appointed by Fed governors to represent the public.
Rep. Ed Perlmutter, D-Colo., said he wanted to delve more deeply into bank executives serving on the boards but noted that the Kansas City Fed, which covers the district he represents, appears to be quite diverse based on a variety of metrics.
It "has a diverse board ethnically, gender wise, labor wise, regional within the Fed and that was the template I'm using," Perlmutter said.
Two regional Fed presidents, meanwhile, pushed back against concerns about conflicts of interest during their testimony.
Richmond Fed President Jeffrey Lacker noted that strict rules govern their conduct. "They simply have no avenue through which they can influence supervisory matters," Lacker said.
And Esther George, president of the Federal Reserve Bank of Kansas City, pointed out that bankers who serve on reserve bank boards are prohibited from participating in the selection of bank presidents.
Republicans, meanwhile, focused much of their attention on whether too much influence over monetary policy is wielded by the East Coast, particularly the New York Fed.
Rep. Bill Huizenga, R-Mich., and chairman of the monetary policy subcommittee, argued that lawmakers should back legislation he sponsored, the Federal Oversight Reform and Modernization Act, or FORM, which includes a provision that would reduce the influence of the New York bank.
The Federal Open Market Committee, the branch of the central bank that determines monetary policy, has 12 voting members made up of seven members of the Fed board of governors and five of the regional Fed banks.
The president of the New York Fed, which supervises Wall Street firms from JPMorgan Chase (JPM) to Goldman Sachs (GS) and Citigroup (C) , is a permanent voting member but the other regional bank presidents serve rotating one-year terms. Huizenga's legislation would put the New York Fed president into the voting rotation along with all the other regional bank chiefs.
"For crying out loud, the San Francisco bank has a tremendously important area," Huizenga told reporters after the hearing. "Silicon Valley, that stretches from LA to Seattle, has tremendously valuable input and to have them only be a voting member every two or three years doesn't make a lot of sense to me."
Rep. Mia Love, R-Utah, said she was concerned that the Western states weren't well represented by the regional Fed bank structure.
"You have members on both sides of the aisle expressing concerns and I would like to know what might be done to rebalance the Fed to ensure that all Americans are represented in monetary policy decisions," she said.
Don Lamson, of counsel at Squire Patton Boggs in Washington and a former regulator at the Office of the Comptroller of the Currency, suggested that if the goal is to create greater accountability to Congress, legislators should require the Fed regional bank system to be funded through congressional appropriations instead of the self-funding that exists now.
With that structure, legislators could remove the regional Fed boards, transforming the quazi-private-public entities into government agencies.
An appropriations process, however, would destroy the independence of the Fed, which is vital to setting interest rates and supervising banks appropriately, Moore argued.
Expanding legislative influence would also open Federal Reserve funding to unrelated policy measures that might be attached in an attempt to get them passed. "Come meet with me I'm the chairman of the Fed's appropriations committee," Moore said facetiously.
By Ronald Orol
Source
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