Hundreds march on Capitol Hill to call for a DACA replacement
Hundreds march on Capitol Hill to call for a DACA replacement
The Trump administration's decision to end the DACA program means thousands of undocumented individuals are on the...
The Trump administration's decision to end the DACA program means thousands of undocumented individuals are on the verge of being deported, despite having lived in the US for years. On Wednesday, protesters took to DC to call for the DREAM Act, which would build on DACA, creating a multi-phase process that would lead to permanent residency.
Read the full article here.
Still important to let our senators know what we think
Still important to let our senators know what we think
What do Credo Action, MoveOn, Idaho Medical Advocacy, CPD Action, Daily Kos, People’s Action, Elizabeth Warren, Mom’s...
What do Credo Action, MoveOn, Idaho Medical Advocacy, CPD Action, Daily Kos, People’s Action, Elizabeth Warren, Mom’s Rising, Our Revolution, Change.Org, AARP, and the Economic Policy Institute have in common?
Well, possibly lots of things — each is an advocacy group working to change America.
Read the full article here.
Police lay out security approach for People's March in wake of Dallas shootings
Police lay out security approach for People's March in wake of Dallas shootings
A scheduled protest march by a host of progressive advocacy groups as part of the Still We Rise convention downtown...
A scheduled protest march by a host of progressive advocacy groups as part of the Still We Rise convention downtown came with an added dose of tension and scrutiny a day after a protest in Dallas culminated in the shooting of five police officers.
The “People’s March” scheduled for 2:30 p.m. on Friday is part of the opening festivities for Still We Rise, a convention organized by the Center for Popular Democracy that’s brought 1,500 people to the city to gather over various causes such as workers' rights, climate change, criminal justice reform and many others.
They’re causes that overlap with the protest march in Dallas over recent police shootings in Minnesota and New Orleans. At that march Thursday, snipers targeted police officers, killing five and wounding seven others, according to various reports.
The People’s March is expected to protest against UPMC, Bank of New York Mellon and Republican Sen. Pat Toomey in a parade that will trail from the David L. Convention Center hosting Still We Rise to the U.S. Steel Tower, headquarters for UPMC, then to One Oxford Centre and across the Smithfield Street Bridge to the Pittsburgh office of Pat Toomey.
A spokesman or BNYMellon declined comment on the event. A representative for UPMC did not return a call seeking comment.
A statement by the Pittsburgh Bureau of Police laid out the public safety strategy and acknowledged calling on law enforcement resources beyond Pittsburgh.
“The Pittsburgh Bureau of Police is committed to keeping people safe during this afternoon’s planned People’s Convention March that begins at the David L. Lawrence Convention Center. There will be a visible presence of uniformed officers along with a not-so-visible presence of plain clothes officers,” reads the statement, quoting the event organizers’ intention of protesting growing inequality and “a toxic atmosphere of hate.”
“Officers will exercise extreme caution to ensure the safety of both our officers and the public,” continued the statement. “The Public Safety Department has been and will continue to be in communication with the FBI. The Police Bureau will work closely with law enforcement agencies on the federal, state and local levels.”
The event otherwise marked a modest convention event for the city, in which the 1,500 attendees represent 2,587 room nights at downtown hotels such as the Omni William Penn, the Wyndham Grand Pittsburgh Downtown, the Westin Convention Center and others.
The Still We Rise proceedings come on the same weekend that the city of Pittsburgh is celebrating the 200th anniversary of its incorporation as a city, including a Bicentennial Parade scheduled for Saturday morning at 11:00 a.m., just one of what’s expected to be more than 100 affiliated events throughout the city in the coming weeks.
Yet the city’s celebration of its birthday has been overshadowed by the shootings in Dallas and by the police shootings of black men in Louisiana and Minnesota that helped to trigger them.
Anticipating the anger and sadness from the shootings, on Friday Pittsburgh Mayor Bill Peduto, working with Allegheny County Chief Executive Rich Fitzgerald, called for “communitywide peace summit” to be held sometime next week.
“We are all affected by the violence in our communities – whether it be here in Pittsburgh, in Dallas, or so many other cities – and we all must do everything we can to stop it,” he said in a prepared statement. “Pittsburgh is a strong and resilient place, and our bonds are even stronger when all of us in the city work together.”
Peduto announced the plan for the summit without a determined date at a meeting today of Local Progress, a national network of progressive elected officials and other organization leaders from throughout the country.
By Tim Schooley
Source
The public compact
The public compact
It is always amusing to be the subject of a John McClaughry jeremiad. While I don’t mind being labeled as the “foremost...
It is always amusing to be the subject of a John McClaughry jeremiad. While I don’t mind being labeled as the “foremost defender” of public education, he insists on giving me full personal credit for what is a state school board position.
In the instant case, John appears to be affronted by the suggestion that private (independent) schools that take public money must actually be held accountable for that money. This principle is at the core of the state board’s review of the independent school rules. Now this seems like a straightforward and fundamentally democratic concept that is generally accepted, but it has been a long-standing problem for some.
The law (16 VSA 166) provides a list of reporting requirements for independent schools if they want to chow down at the public trough. Unfortunately, as far back as the 1914 Carnegie Commission, we find evidence of the refusal of some independent schools to provide private school data even though it was the law of the land. (At that time, the Cubs were still basking in the glory of their World Series victory.)
The second paramount principle is that we have to educate all the children — regardless of needs and handicaps. That’s a necessity in a democracy. Denying a child admission on the basis of a handicap is, in most cases, illegal. Furthermore, it’s wrong. Public schools serve every child. The false fear John peddles is that the private school can’t afford to serve these children. That’s incorrect. It’s really quite simple. While great eruptions of umbrage are displayed, this problem has been solved for years. The private school contracts with (or hires) a specialist who bills the costs back to the public school. Approval in a given area requires that one sheet of paper be filed with the state. As simple as the solution actually is, some independent schools refuse to adopt an equal opportunity policy.
Instead, John proposes that Vermont “clone” Florida’s McKay Scholarship program where parents can choose the school for their handicapped child. That hasn’t worked out too well. If you think a “business management class” that sends students onto the street to panhandle is an acceptable education, then the McKay program may be just your thing. The Florida Department of Education has uncovered “substantial fraud,” including schools that don’t exist, non-existent students, and classes held in condemned buildings and public parks. And the state of Florida does not have the staff to adequately monitor the program. This is a recipe for abuse. Last May, the Center for Popular Democracy estimated that $216 million in charter school money went out the back door.
Finally, John raises the cost question and says private school scholarships would be “less expensive.” Yet he also criticizes the cost of the state’s excess public school capacity. Now let’s look at Vermont’s private independent school numbers. In 1998, there were 68 independent schools, and by 2016, the number had exploded to 93. In the decade 2004-14, independent school enrollments went down from 4,361 to 3,392. A 37 percent increase in schools with a 29 percent drop in students suggests somebody needs to revisit their business plan.
Taking it all together, (1) all who profit from the public treasury must be accountable for that money, (2) children have the right to be admitted to private schools, free of discrimination, on an equal opportunity basis, (3) private schools are a part of our system, (4) the public purse must be protected from fraud and abuse, and (5) directly or indirectly building and operating a parallel school system would be inordinately expensive and wasteful. Do these principles sound reasonable?
William J. Mathis is managing director of the National Education Policy Center and a member of the Vermont state Board of Education. The views expressed here are his own and do not represent the views of any group with which he is associated.
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Progressive Groups Go On The Offensive Against A Fed Interest Rate Hike
Progressive groups are launching a national campaign this week to pressure the Federal Reserve not to raise interest...
Progressive groups are launching a national campaign this week to pressure the Federal Reserve not to raise interest rates until wages begin growing more significantly. And they are getting some help from popular liberal economist Robert Reich.
The groups, led by the Center for Popular Democracy’s Fed Up campaign -- a foundation-funded nonprofit committed to a more "pro-worker" Federal Reserve -- inaugurated the effort in earnest over the weekend with mass email blasts and solicitation on other digital platforms of a petition, “Tell the Fed: Don’t Raise Interest Rates!”
Participating organizations, which include online progressive heavyweights CREDO Action, Daily Kos and the Working Families Party, will send the petition to an increasing number of activists over the course of the week. The groups, a complete list of which you can find in the petition, have a combined email list and website visitor reach in the millions.
Activists will deliver the petition signatures they amass in the coming weeks to Fed officials at the Kansas City Federal Reserve Bank’s annual symposium in Jackson Hole, Wyoming, onAug. 27-29. Fed Up is sending a delegation of low-income workers and representatives from communities of color to the symposium with the goal of raising awareness of working families’ concerns about Fed monetary policy. The Fed Up campaign formally began with a similar visit to Jackson Hole last year.
Some of the emails to activists will include a video from Robert Reich, an economist at the University of California, Berkeley and former secretary of labor, that is likely to give the effort a high-profile boost. Reich posted the video, along with a link to the petition, on his Facebook page on Friday. As of Monday afternoon it already had been viewed over 142,000 times -- and shared by more than 3,600 people. Reich relies on a production team to make his videos, but does the illustrations featured in them himself.
The new online campaign aims to influence the Fed at a pivotal moment: The central bank is indicating that it will raise interest rates as soon as September. Atlanta Fed President Dennis Lockhart, who sits on the FOMC, confirmed on Monday that the Fed would soon raise rates, saying the "the point of 'liftoff' is close." Lockhart's remarks come after July jobs numbers Friday showed relatively steady job gains.
Robert Reich’s Federal Reserve 101
The progressive groups pushing back against a rate hike are betting that if the public knew how much they stood to lose if rates go up, they would be willing to speak out against a hike. They could then generate pressure to change the Fed’s calculus.
For that to happen, though, people need to understand what the Federal Reserve is -- which activists acknowledge is rare.
So Reich’s five-minute video starts at square one, explaining how the Federal Reserve works and why it affects Americans’ lives -- before articulating the case against a rate hike. The Fed cuts interest rates, or keeps them low, he explains, in order to stimulate the economy. “The lower the [Fed’s] rates, the easier it is to borrow,” Reich says in the video. “The easier it is to borrow, the more active the economy becomes.”
Reich then elaborates on the virtuous cycle that takes hold when low rates leave people with more disposable income, as graphics illustrating his points whiz by onscreen. Consumers spend more, Reich explains, growing businesses and increasing demand for labor. And if there is enough demand for workers, he continues, employers raise wages to compete for those workers.
Why Do Progressives Think A September Rate Hike Is Premature?
Reich, like the campaign he is backing, makes the case that the Fed should wait until demand for workers is high enough to increase wages substantially before raising interest rates. Although the official unemployment rate of 5.3 percent is low by historical standards, it has yet to translate into substantial wage growth. Average wages have risen 2.1 percent in the past 12 months -- not much higher than the rate of price inflation, which, as of June, was 1.8 percent (not including energy and food).
Economists like Jared Bernstein of the Center on Budget and Policy Priorities argue that wage growth has yet to take off because there are still too many job seekers for the number of jobs available. The official unemployment rate does not account for the 6.3 million underemployed workers, who have part-time work but want to work full time, or the 668,000 jobless workers, who have given up seeking work altogether.
Although the progressive groups’ petition does not explicitly demand that the Fed wait for a specific wage growth figure before raising interest rates, the Fed Up campaign and its partners have largely coalesced around a wage growth target of 3.5 to 4 percent. The liberal-leaningEconomic Policy Institute, which is participating in the new petition campaign, estimates that with that type of wage growth, price inflation will not “significantly exceed” the Fed’s 2 percent inflation target.
These progressives warn that a Fed interest rate hike that occurs before significant wage growth takes hold would disproportionately hurt people of color and women. Both groups face routine discrimination in the job market that they are more likely to overcome in a high-demand economy buttressed by low rates. And people of color are much more likely to be workers on the lower side of the earnings spectrum, who have the least leverage vis-à-vis employers. That means they are often the last people to get hired or get a raise when the job market heats up, and the first to lose their jobs when it cools down. For evidence of this, they say, look no further than the shockingly high African-American unemployment rate of 9.1 percent.
What About Inflation?
The Fed balances its mandate to maximize employment with an obligation to prevent excessive inflation. That is why it raises interest rates when it believes prices are at or near its target inflation rate of 2 percent. Some economists also believe that even when consumer prices are below the target rate, the Fed should raise rates if housing and stock prices are getting unreasonably high.
Reich -- and the many economists and activists with whom he finds common cause -- appreciate the Fed’s obligation to prevent runaway inflation. But they note that inflation has remained consistently below the Fed’s target rate of 2 percent. And they believe that for the sake of job creation and wage growth, the economy can tolerate slightly higher inflation than the current Fed target.
“More jobs and better wages are more important than theoretical worries about accelerating inflation,” Reich concludes.
Reich and allies point to the late 1990s as a model for Fed monetary policy. They credit then-Fed Chair Alan Greenspan for refusing to raise interest rates even as the official unemployment rate dipped, against the wishes of other Fed officials concerned about inflation. As a result, wage growth was widespread enough to produce significant gains for workers at the bottom of the earnings spectrum.
A New Progressive Priority?
The petition campaign against a Fed rate hike is something of a coup for advocates who, asHuffPost reported at length in June, have long argued that Fed monetary policy should be a higher priority for the political left. Although the foundation-funded Fed Up campaign has been agitating for a more “pro-worker” Fed for nearly a year now, this is the first time it is collaborating with major progressive players like CREDO Action, Daily Kos and the Working Families Party. The Economic Policy Institute, which is a member of the Fed Up campaign’s founding coalition, is also activating its email list for a Fed Up petition effort for the first time.
A broad array of liberal-leaning organizations joined forces in the summer and fall of 2013 to torpedo President Barack Obama’s nomination of Lawrence Summers as chair of the Federal Reserve Board of Governors. Summers united economic progressives concerned about his Wall Street ties and women’s advocates angered by his remarks about women. Their efforts succeeded in winning the appointment of Janet Yellen as chair instead of Summers.
But since that time, the Fed has largely faded from the progressive foreground. Higher-profile fights like the movements for the $15 minimum wage and against the Trans-Pacific Partnership trade deal have taken up the lion’s share of progressive energy and attention, dwarfing more esoteric causes. To the extent progressives have publicly pressured the Fed, it has been to police Wall Street more carefully, not maintain a dovish monetary policy.
“In general it’s clear that the Federal Reserve gets far less attention from progressives than it should in light of the tremendous influence it has over the economy and Americans’ quality of life,” said Josh Nelson, communications director for CREDO Action.
This relative inattention is evident in how little Federal Reserve monetary policy has come up in the 2016 Democratic presidential primary. The topic has not been discussed widely on the campaign trail. Of the major Democratic presidential candidates, only former Maryland Gov. Martin O’Malley responded to a request for comment last week on a possible Fed rate hike. O’Malley agreed with progressive activists that the Fed should wait for more robust wage growth before raising rates.
By contrast, the right wing has relentlessly trained its fire on the Fed for “debasing” the dollar with its quantitative easing program -- its now-defunct multitrillion-dollar asset purchasing program -- and low interest rates. Republican members of Congress regularly grill Yellen for printing too much money.
To the extent that Republican presidential candidates have broached the subject, they have weighed in in support of raising rates. Donald Trump, a real estate mogul and ersatz Republican presidential candidate, warned last week that the Fed’s low interest rates are causing an asset bubble. New Jersey Gov. Chris Christie has also slammed the Fed’s “easy money” policies for endangering the economy.
But the petition effort raises advocates’ hopes that a progressive movement with the power to match the right's Fed lobby is finally taking shape.
Haedtler said that CREDO Action, Daily Kos and the Working Families Party were eager to get involved.
“They were very enthusiastic about targeting a new institution that was not accustomed to outside pressure by working families,” Haedtler said, adding that he thought soliciting these groups’ involvement “would be more challenging than it was.”
They were receptive to the argument, Haedtler said, that the Federal Reserve can “wipe out a lot of progress” on more visible issues like the minimum wage, if the Fed “does not recognize that the economic recovery has not benefitted everybody.”
CREDO Action did not specify how many activists it would target, but said that the petition would reach “many of the economic justice activists” on the group’s 3.8 million-person email list.
“The traditional obscurity [of the Fed] is why we must organize around it,” CREDO Action’s Nelson said. “People assume they can't influence the Fed. But that's wrong. These are people and they are open to both pressure and input. Pointing out that many communities still suffer is an essential role for advocates.” Nelson added that progressive input is a “necessary counterweight” to Wall Street influence on the central bank.
Chris Bowers, the Daily Kos’ executive campaign director, is confident that the Fed rate hike is not too esoteric for Daily Kos members. “One thing we've learned over the years is that Daily Kos readers tend to be very sophisticated, highly engaged activists who know a great deal about all manner of political issues,” Bowers said in an email. “In fact, some of our best-performing campaigns have focused on topics that might seem surprisingly obscure, such as net neutrality and filibuster reform. So we expect that our readers will readily grasp what's at stake here.”
Daily Kos is soliciting signatures for the petition through a splash screen some people see when they visit the site. Bowers estimates that 20,000 people a day will see the splash over the course of a campaign that will last at least two weeks. He said Daily Kos is gauging the “intensity” of their members’ interest in the Fed based on their engagement with the petition. If enthusiasm is high, it will send the petition to its much larger email activism list.
Beyond Stopping A Rate Hike
Ultimately, the Fed Up campaign and its allies are on a larger mission to make the Federal Reserve more accountable to working people. That means not only preventing an interest rate hike before greater wage growth takes hold, but also pushing the Fed to rebalance its dual mandate toward genuine full employment and higher wages, and away from what they believe is excessive concern about inflation. The theme of this year’s Jackson Hole symposium is“Inflation Dynamics and Monetary Policy,” which Fed Up points to as a typical sign of the Fed’s inflation bias.
“We want to reframe the narrative” at the symposium, Haedtler said. Inflation, he explains, “is not what is on the minds of low-wage workers who have been suffering through a very slow economic recovery.”
“We think of our campaign less as a left/right divide, and more as an effort to bring the voices of working families to the Federal Reserve for the first time,” Haedtler noted. “Ultimately our members are fighting for a broader recovery, better wages and better working conditions.”
Fed Up can point to concrete progress toward this goal since its inaugural action at the Jackson Hole symposium last August. Their protests there led to a meeting between Fed Up activists and Kansas City Fed President Esther George. That in turn opened the door to meetings with four other regional Federal Reserve bank presidents. Fed Up has also met with Yellen and several members of the Fed Board of Governors in their Washington offices.
The meetings have enabled working people organized by Fed Up to share their economic experiences with Fed officials, who make decisions that will affect these people’s lives.
Haedtler believes these meetings are already bearing fruit. The Fed created a Community Advisory Council in January to solicit more diverse views on the state of the economy.
“Even very hawkish regional presidents -- like James Bullard, the St. Louis Fed president -- really seem to take to heart some of the stories we convey to them,” he said.
The Fed Up campaign also wants to reform the selection process for regional Federal Reserve bank presidents, which it says reflects the narrow interests of the bankers that dominate their boards of directors. They are asking regional Fed presidents that they meet with for a timeline of their selection process and a list of candidates being considered.
Fed Up claims credit for the Minneapolis regional Federal Reserve Bank’s decision to disclose the process through which it would select its next president.
“We know something about congressionally confirmed Fed board governors, but very little about regional fed presidents, other than that they are overwhelmingly white, male and have close ties to the financial sector,” Haedtler said.
Source: Huffington Post
More Cities Should Do What States and Federal Government Aren't on Minimum Wage
Early this month, New York City Mayor Bill de Blasio announced a guaranteed $15 minimum wage for all city government...
Early this month, New York City Mayor Bill de Blasio announced a guaranteed $15 minimum wage for all city government employees by the end of 2018. This is a big win for over 50,000 workers across the city struggling to provide for their families, including those directly on the payroll and tens of thousands working at non-profits that contract with the city.
Unlike in Seattle and Los Angeles, where city officials are empowered to raise the minimum wage for the entire workforce in their cities, Mayor de Blasio is unable to unilaterally raise wages for all New York City workers. That power lies with Gov. Andrew Cuomo and the state legislature. The governor's efforts to lift the minimum wage to $15 are being hampered by a Republican-controlled state Senate.
De Blasio's decision to raise wages for city employees is a crucial independent step towards a more equitable city - and should be seen as an inspiration for cities around the nation. It also reflects the power and momentum of a groundbreaking worker-led countrywide movement demanding higher wages.
Even as state and federal administrations drag their feet on the inevitable question of a decent minimum wage for working families in the United States, de Blasio's gutsy move shows cities can and should take matters into their own hands.
The mayor's minimum wage raise closely follows his announcement last month giving six weeks paid parental leave, and up to 12 weeks when combined with existing leave, to the city's 20,000 non-unionized employees. The mayor has now moved to negotiate the same benefits with municipal unions. Again, New York City private sector workers must look to Albany or Washington, D.C. to move on paid family leave for all.
Mayor de Blasio's recent actions support his goal of lifting 800,000 New Yorkers out of poverty over ten years. More than 20 percent of the city's population lives in poverty, a huge swath of a city commonly associated with extraordinary wealth.
The last couple of years have seen unparalleled momentum from workers themselves - from New York City to Los Angeles and Chicago - calling for livable wages, resulting in minimum wage raises for fast food workers and other groups.
Workers are not waiting patiently on government officials – they are organizing in an unprecedented way. Progressive mayors like de Blasio are responding with sound policy, while less responsive officials are being put on notice. Cities like Los Angeles, New York City, and Chicago are paving the way, showing that it is possible to act independently of state and federal governments.
In addition, laws raising the minimum wage to more than the pitiful federal standard of $7.25 an hour have passed in a number of states. There are now campaigns to raise the floor and standards for workers being led in 14 states and four cities. This momentum is building into a crescendo that will have deep implications for the 2016 presidential election.
Nearly half of our country's workers earn less than $15 an hour and 43 million are forced to work or place their jobs at risk when sick or faced with a critical care-giving need. Now is the time for cities to listen to their workers and override state and federal passivity to allow millions of hard-working Americans to provide for their families.
*** JoEllen Chernow is minimum wage and paid sick days campaign director at Center for Popular Democracy. On Twitter @popdemoc.
Source: Gotham Gazette
Why markets ignore Trump news
Why markets ignore Trump news
ALSO TODAY: FED UP IN WYOMING — Per release: “On the eve of the Federal Reserve’s annual economic symposium in Jackson...
ALSO TODAY: FED UP IN WYOMING — Per release: “On the eve of the Federal Reserve’s annual economic symposium in Jackson Hole, researchers, scholars, and workers will join Fed Up for a panel discussion that will set the tone for this year’s theme: “Changing Market Structure and Implications for Monetary Policy.” Thursday, August 23 - 4:00 pm MDT. “Free Speech Area” directly in front of the Jackson Lake Lodge.
Read the full article here.
Accountability of Charter Schools in Illinois Raises Questions
WTAX News Radio - February 2, 2015 - Charter schools in Illinois are in the cross hairs of a new report alleging a lack...
WTAX News Radio - February 2, 2015 - Charter schools in Illinois are in the cross hairs of a new report alleging a lack of accountability leading to between $13 million and $27 million in fraud.“At a time when (Chicago Public Schools are) crying broke, and public schools are grossly under-resourced, and there’s a public demand for transparency and accountability around every corner,” says Action Now executive director Katelyn Johnson, “it seems unconscionable that CPS and the state of Illinois would not invest in rigid financial oversight of charter schools.”Johnson’s group is supporting the Center for Popular Democracy in the report, “Risking Public Money.”Andrew Broy has a differing viewpoint. He’s the president of the Illinois Network of Charter Schools and dismisses the other two groups as union-funded and anti-charter to begin with.“The question” about accountability, he says, “is if there are challenges with an internal governing board, how do we uncover that and make sure it’s taken care of, and the current law equips districts with all the tools they need to make sure that happens.”Source
May Day Protesters Gather Outside JP Morgan Chase HQ in Manhattan
May Day Protesters Gather Outside JP Morgan Chase HQ in Manhattan
New Yorkers kicked off May Day protests early on May 1, marching from Bryant Park to the JP Morgan Chase headquarters...
New Yorkers kicked off May Day protests early on May 1, marching from Bryant Park to the JP Morgan Chase headquarters in Manhattan, where they attempted to block the entrance. Over a dozen arrests were made, according to local reports.
The protesters outside JP Morgan were joined by others outside the Wells Fargo building as part of a larger Take on Corporate Backers of Hate March, targeting the corporate entities for financing Immigration and Customs Enforcement (ICE) detention centers and private prisons across the country.
Read full article here.
Elizabeth Warren And Congressional Democrats Call Out Lack Of Diversity At The Federal Reserve
Elizabeth Warren And Congressional Democrats Call Out Lack Of Diversity At The Federal Reserve
A majority of House Democrats and eleven Democratic senators sent a letter to Federal Reserve Chair Janet Yellen on...
A majority of House Democrats and eleven Democratic senators sent a letter to Federal Reserve Chair Janet Yellen on Thursday, urging the Fed to improve the diversity of its top officials and increase the representation of consumer and labor groups in its ranks.
The letter, spearheaded by Sen. Elizabeth Warren (D-Mass.) in the Senate and Rep. John Conyers (D-Mich.) in the House, argues that a lack of diversity of all kinds at the Federal Reserve undermines the central bank’s ability to represent the public.
The Fed’s control over monetary policy, the letter notes, gives it far-reaching influence over the economy. When the central bank decides to raise interest rates, it increases borrowing costs, putting downward pressure on job creation in order to keep inflation in check.
A Fed with fewer black and female decision-makers might be less attuned to the ways in which modest changes in the job market disproportionately affect African-Americans and women, both of whom suffer from employment discrimination.
“When the voices of women, African-Americans, Latinos, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected,” the letter states.
Boasting the signatures of 116 House Democrats, including all of the Democrats in the Congressional Black Caucus, the letter does not lack for evidence with which to critique the central bank.
Eighty-three percent of the board members of the regional Federal Reserve banks are white, and almost three-quarters of them are men, according to a Center for Popular Democracy study cited in the letter.
Just 11 percent of those board members represent consumer and community groups or labor organizations, the study states, while 39 percent come from the financial industry and 47 percent from other major business sectors.
When the voices of women, African-Americans, Latinos, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected.
Warren-Conyers letter to Janet Yellen
The congressional Democrats praised Yellen in the letter for prioritizing full employment since she has taken the helm in 2014. Yellen has presided over just one increase in the Fed’s benchmark rate in December, when the Fed raised it to a range of 0.25 to 0.5 percent from the near-zero level, where it had been since the 2008 financial crisis.
The letter also credits Yellen for promising to “consider” African-American candidates for open regional Fed president positions during her congressional testimony in February, and expressing “concern” that there has never been a black president of a regional Federal Reserve bank.
But just days after Yellen’s testimony, the Democrats note, the Fed announced it had approved the re-appointment of 10 regional Fed presidents, all of whom are white and eight of whom are men.
“Despite the importance of this decision, there appears to have been no public consultation, and limited transparency regarding the metrics and criteria used to evaluate the presidents’ performance, or in the decision to reappoint them,” the letter alleges.
Warren and Conyers’ letter is part of a broader push by progressive members of Congress, along with national activist groups and like-minded economists, to make Federal Reserve monetary policy a key component of the progressive agenda. They argue that the outsize influence of inflation-wary financial professionals on the central bank, plus sustained pressure from ideological conservatives in Congress, mean it’s time for liberals to be more vocal about their views.
The Fed Up coalition, an alliance of progressive groups headed by the Center for Popular Democracy, has led these efforts, which include a reform plan released in April that would transform the Fed into a wholly public entity, among other changes. (The 12 regional Fed banks are currently owned by private financial institutions.)
Fed Up said activists affiliated with its member groups made calls to members of Congress to encourage them to sign the letter.
Democratic hopeful Sen. Bernie Sanders (I-Vt.) was among the lawmakers who did so. Sanders also praised Fed Up’s April reform plan and released detailed proposals of his own for the central bank in December.
Fellow Democratic candidate Hillary Clinton’s campaign implied that Clinton agreed with the letter’s key demands.
“Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue,” Jesse Ferguson, a spokesman for the Clinton campaign, said in a statement. “Secretary Clinton will also defend the Fed’s so-called dual mandate — the legal requirement that it focus on full employment as well as inflation — and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry.”
The remarks appear to be the most explicit comments to date by either Clinton or her campaign on the Democratic presidential front-runner’s vision for the Fed and the types of Fed officials she would appoint as president.
Presumptive GOP nominee Donald Trump’s presidential campaign did not immediately respond to a request for comment on the letter.
Trump told CNBC last week that he would likely replace Yellen, who is the first female chair of the central bank, once her term ends in 2018. In the same interview, he said he supports low interest rates, a policy Yellen promoted that might be undone by a more conservative Fed chair.
Trump’s latest comments suggest a departure from claims he made in August, when he said the low rates were feeding a financial asset bubble.
By Daniel Marans
Source
1 month ago
1 month ago