CPD IN THE NEWS

The first woman to chair the Federal Reserve is being criticized by Democratic legislators demanding more diversity in the central bank’s top policymaking positions

The first woman to chair the Federal Reserve is being criticized by Democratic legislators demanding more diversity in the central bank’s top policymaking positions.

According to report from TheHill.com, Fed Chairwoman Janet Yellen received a letter from 116 House Democrats and 11 senators that complained about the surplus of white men in leadership roles. The lawmakers pointed out that the central bank’s Federal Open Market Committee (FOMC) is entirely White and called for an emphasis on ethnicity and economic and professional backgrounds as part of the factors in choosing future executive officers.

“The importance of ensuring that such positions are filled by persons that reflect and represent the interests of our diverse country cannot be overstated,” the letter stated. “When the voices of women, African-Americans, Latinos, Asian Pacific Americans, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected.”

The letter was coordinated by Sen. Elizabeth Warren (D-MA) and Rep. John Conyers Jr. (D-MI). Vermont Sen. Bernie Sanders, an Independent who is running for the Democratic presidential nomination, was among those signing the letter, while Hillary Clinton chimed in her support after the letter’s contents were made public.

For its part, the Fed insisted that it was committed to diversity in hiring.

"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," said a Fed spokesperson. "By law, we consider the interests of agriculture, commerce, industry, services, labor, and consumers. We also are aiming to increase ethnic and gender diversity."

By Phil Hall

Source

“Some campaigners are critical of the Fed’s handling of the mis-selling scandal at Wells Fargo, which is headquartered in Mr Williams’s district, while activists with the Fed Up group want the New York Fed to restart its search. “We haven’t seen as big a backlash as this to a regional Fed appointment,” said Sarah Binder, a professor of political science at George Washington University. “The criticism has been coming only from the Democrats, but that doesn’t mean it doesn’t matter. The Fed depends on there being public support, and it can only make tough decisions if it is seen as having legitimacy. The more criticism it faces the harder it is to do its job."

Read the full article here.

Some top policymakers, including Fed Vice Chairman Stanley Fischer, said recent volatility in global markets could quickly ease and possibly pave the way for the U.S. rate hike, for which investors, governments and central banks around the world are bracing.

With a key policy meeting set for Sept. 16-17, at least five Fed officials spoke publicly in what amounted to a jockeying for position on whether increasing the Fed's benchmark overnight lending rate was too risky amid an economic slowdown in China, a rising U.S. dollar .DXY and falling commodity prices XAU= CMCU3.

"It's early to tell," Fischer told CNBC on the sidelines of the annual central banking conference in Jackson Hole, Wyoming. "We're still watching how it unfolds." He, along with other Fed officials, acknowledged that the global equities sell-off that began last week would influence the timing of a rate hike, which until only a couple of weeks ago seemed increasingly likely to occur in September.

Concerns about China's economy have whipsawed markets, including Wall Street, even while U.S. economic data has been robust. U.S. stock indexes ended largely unchanged, capping a week that included both the market's worst day in four years and biggest two-day gain since the 2007-2009 financial crisis.

"I think they could settle fairly quickly," said Fischer, a close ally of Fed Chair Janet Yellen.

St. Louis Fed President James Bullard told Reuters he still favored hiking rates next month, though he added that his colleagues would be hesitant to do so if global markets continued to be volatile in mid-September.

The Fed's policy committee "does not like to move right in the middle of a global financial storm," Bullard, a Fed hawk, said in an interview. "So one of the advantages we have is that this storm is occurring now and, at least as of now, we think it will be settled down" by the September meeting.

The comments suggest the next two and a half weeks will be critical for the Fed as well as for global markets. A U.S. rate hike is expected to hit emerging market equities and currencies particularly hard, adding to the sell-offs already seen.

Source: Reuters

“As one of Baupost’s most significant outside investors, Harvard can exercise some influence on the hedge fund’s operations," said Julio López Varona, a member of Hedge Clippers. “They have a big endowment; their investment sets a tone.”

Read the full article here.