CPD IN THE NEWS

 A coalition of community and labor groups known as “Fed Up” said 39 members planning to stay at the hotel hosting the Federal Reserve’s prestigious annual retreat in Jackson Hole, Wyoming, were unfairly singled out when their 13 room reservations were canceled.

The group, which is pressing the U.S. central bank to appoint more minorities and women to its leadership, said most of its attendees would have been black and Latino. It has filed a complaint with the U.S. Department of Justice and other government officials. The group believes it lost the rooms because of “specific targeting of the Fed Up coalition.”

Fed Chair Janet Yellen is the first woman to lead the U.S. central bank and it remains under pressure to become more diverse. Democratic presidential nominee Hillary Clinton joined calls for reform in May and the central bank has taken fire from Republicans, who warn its low interest rate policies risk inflating another asset bubble.

The Fed Up coalition, which wants rates to stay low to boost hiring and lift wages, has discussed its concerns with Fed officials, including Esther George, president of the Kansas City Fed, which hosts the annual Jackson Hole monetary-policy conference in late August.

Faced with criticism that it doesn’t look out for the interests of poorer Americans, the Fed has been making efforts to change. The Kansas City Fed said on Thursday that it will hold a conference on the challenges low- to moderate-income communities face on Sept. 7-8 at its headquarters.

Booking Error

Alex Klein, vice president and general manager of Grand Teton Lodge Company and Flagg Ranch, said the reservations were canceled because “an error in the booking system” resulted in the Jackson Lake Lodge being oversold by 18 rooms. “We worked proactively and diligently with guests to relocate them to our nearby Flagg Ranch property,” he said in a statement.

The Kansas City Fed has a contract to provide rooms for guests at the symposium and “has no input regarding any decisions that the Lodge makes outside of its contract with us,” said bank spokesman Bill Medley.

The symposium, which gathers policy makers and economic-thought leaders for a three-day retreat in the heart of the Grand Teton mountains, is probably the most important event of its kind on the central-banking calendar. Yellen will attend and plans to address the conference on Aug. 26. This year’s meeting, which is invitation only, is focused on the topic “Designing Resilient Monetary Policy Frameworks for the Future.”

The hotel, while remote, is open to the public and Fed Up representatives have made the trip for the past two years. In 2015, Fed Up held an alternative conference at the Lodge which was addressed by Nobel-prize winning economist Joseph Stiglitz.

By Steve Matthews & Jeanna Smialek

Source

Liberal activists are putting a target on the Federal Reserve for the 2016 elections, much to the delight of the Bernie Sanders campaign.

Denouncing an agenda that they say tilts toward Wall Street, members of the “Fed Up” coalition on Monday unveiled a set of reforms that would alter how the central bank does business.

“No longer are we focused only on fixing the Fed’s monetary policy and internal governance positions,” said Ady Barkan, the group’s campaign director. “We are now beginning an effort to reform the Federal Reserve itself.

“Ask all of the presidential candidates what their plans are for the Federal Reserve,” he added in a call with reporters.

While touting its reform proposals, the group was joined Monday by a top policy official with Sanders, who has made criticism of Wall Street a cornerstone of his presidential bid.

Warren Gunnels, Sanders’s policy director, said the Democratic candidate was not yet ready to endorse the coalition’s proposal, needing more time to review it.

But Sanders has pitched his own Fed reforms, and Gunnels said the Vermont senator is “very passionate” about overhauling how the Fed does business. Gunnels said the central bank should delay raising rates any time soon.

“The Fed should not raise interest rates until unemployment is lower than 4 percent,” he said. “Raising rates must be done as a last resort, not to fight phantom inflation.”

The “Fed Up” coalition said it had reached out to every remaining presidential campaign with its reform proposal. None of the Republican campaigns responded, but the group has had “very substantive conversations” with staffers to Hillary Clinton, according to Barkan.

“We urge Secretary Clinton to show leadership on this issue and hope that she will soon be coming out with her plan to reform the Federal Reserve,” he told The Hill.

Clinton’s campaign did not respond to a request for comment.

The leftward pressure on the Fed is coming at a critical time.

The bank is trying to step back from intense stimulus it injected into the economy after the financial crisis. It raised rates for the first time in nearly a decade in December, but so far has opted not to raise them any further at subsequent meetings.

Looming over its deliberations is the presidential election. The central bank prides itself on its political independence, and any major decisions in the months to come could expose it to charges it is working to benefit one party or the other.

While many economic indicators are improving, many community groups like Fed Up argue that many middle-class and working-class Americans are feeling none of those gains. They point to stagnant wage growth and a low labor participation rate as evidence that the Fed has ample reason to continue boosting the economy.

The coalition’s reform proposal was written by Andrew Levin, a Dartmouth economist who spent two decades at the Fed, including time as a special adviser to Fed chiefs Ben Bernanke and Janet Yellen.

While most conservative critiques of the Fed center on how it conducts monetary policy, Levin focuses most of his fire on the dozen regional Fed banks scattered across the country.

Levin argues that the regional institutions are undemocratic entities that hand bank executives huge influence at the Fed. The regional banks are directly backed by commercial banks, which occupy most of the seats on each regional bank’s board. In turn, those boards pick each regional Fed president, who at some point will hold a rotating spot on the Fed’s board, which handles the nation’s interest rates.

Under Levin’s plan, regional Fed banks would have to solicit public input when selecting their presidents. Regional banks would be required to put together a list of candidates through input from both the public and public officials from their specific region. The plan calls for Fed banks to emphasize diversity, considering candidates across a range of racial, gender and educational backgrounds.

Levin highlighted that in the 100-year history of the Federal Reserve system, there has never been a black head of a Fed regional bank.

The unveiling of the reform plan came on the same day that Fed Chairwoman Janet Yellen met privately with President Obama to discuss the central bank’s work and the state of the economy.

High-ranking Republicans have been critical of the Fed, particularly for the unprecedented stimulus program it carried out under Bernanke. Top GOP candidates like Donald Trump and Ted Cruz have accused the Fed of harming the economy with its efforts, and Speaker Paul Ryan (R-Wis.) has also been a frequent critic of the bank.

Sanders occupies a fairly unique political position when it comes to the Fed. He was one of just two Democrats to back a vote earlier this year on a Republican bill that would subject the central bank to a full outside review.

Did you know 67% of all job growth comes from small businesses? Read More

Separately, Sanders has also pushed to “Audit the Fed,” and the Levin plan also includes a comprehensive annual review of the Fed’s operations.

The Vermont senator has floated his own Fed reform proposal, arguing in a December piece in The New York Times that the institution has been “hijacked” by bankers. His plan would limit the influence of the financial sector on selecting Fed officials and require the Fed to prioritize unemployment when considering interest rates.

Fed officials have repeatedly resisted any efforts to change how it does business, frequently arguing that changes could render the central bank ineffective or subject it to improper political pressure.

By Peter Schroeder

Source

Think Progress – October 25, 2013, by Esther Yu-Hsi Lee -

A Center for Popular Democracy report released on Thursday reveals that the majority of construction site accident victims in New York State are Latinos and/or immigrant workers. In an eight-year overview of Occupational Safety and Health Administration (OSHA) investigations between 2003 to 2011, the researchers found that punitive measures to impose construction worker safety are often meager and its resulting criminal penalties are almost never followed through, especially at non-union work sites.

Only 34 percent of all construction workers in New York state are Latino and/or an immigrant, but they comprise 60 percent of all OSHA-investigated “fall from an elevation fatalities” in the state. That number climbs to 74 percent in New York City and skyrockets to 88 percent in Queens and 87 percent in Brooklyn.

Latinos, some of whom make up the 17 percent undocumented construction worker population, stay on hazardous workplace sites because refusal to work could mean deportation. A 2002 Supreme Court ruling makes it difficult for undocumented workers to seek basic labor protections because they weren’t legally allowed to work in the first place.

Many of these workers are in the US to support their families abroad. According to the New York Daily News, Daniel Basilio, a Mexican immigrant from Hidalgo, fell four stories and died on route to the hospital. Hours after he died, his wife in Mexico gave birth to his second child.

Basilio’s tragedy is just one of 400,000 construction site deaths that have occurred since 1970. One study showed that at least 85 percent of day laborers were “routinely abused,” including receiving substantially less pay than was agreed upon, receiving bad checks, being unable to take breaks or water, and subjected to robbery and threats, and exposed to chemical wastes and occupational hazards.

New York State has had worker protection laws, like the Scaffold Law, in place since the 1880s. That law makes owners and contractors directly liable for providing a safe workplace for workers who are otherwise too afraid to report unsafe conditions. Owners and contractors must provide worker’s compensation and health care for medical care, pain, and suffering if their safety equipment cause serious injury.

But the Scaffold Law is hard to implement given that OSHA fines are meager and do little to improve construction site violations. Penalties generally run between $2,000 (for a serious injury) to $12,000 (for a fatality)– a paltry sum equivalent to the price of an used car. Also, OSHA inspectors have cut down on the number of OSHA visits due to budget cuts, to the point where an average workplace only receives an OSHA visit every 99 years.

Source

Nearly 60 people were killed and more than 500 injured in the worst mass shooting in modern US history on Sunday night, early Monday morning in Las Vegas at a concert. As details are still emerging about the suspected shooter, we’ll take on the issue of gun control and the myths of the gun industry with Dennis Henigan. Then, we’ll turn to the situation in Puerto Rico. Samy Olivares of the Center for Popular Democracy will give us a report on the on-going slow-motion disaster unfolding in the aftermath of Hurricane Maria and how mainland Americans can help. Finally, author George Monbiot joins us from London to discuss his new book Out of the Wreckage: A New Politics for an Age of Crisis. Hosted by Sonali Kolhatkar.

Listen to the story here.