Group of Lawmakers Says Fed Fails to Diversify Leadership
Group of Lawmakers Says Fed Fails to Diversify Leadership
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its...
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its obligation to build a diverse leadership that includes enough women and minorities, and it wants Chair Janet Yellen to remedy the issue.
The lawmakers said a more inclusive leadership that properly reflects gender, race, ethnicity, occupation and economic background is needed to ensure fairness in Fed policy.
The Democratic lawmakers — 11 senators and 116 in the House — expressed their concerns in a letter to Yellen. The Fed's leadership "remains overwhelmingly and disproportionately white and male," they wrote.
In its search for directors who oversee the Fed's 12 regional banks for terms next year, the Fed's board of governors should cast a wider net for African American, Latino and female candidates, as well as qualified people from labor, consumer and community organizations, the lawmakers told Yellen.
A Fed spokesman, David Skidmore, responded that the central bank is "committed to fostering diversity — by race, ethnicity, gender and professional background — within its leadership ranks."
"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," Skidmore said. "By law, we consider the interests of agriculture, commerce, industry, services, labor and consumers. We also are aiming to increase ethnic and gender diversity."
The senators signing the letter include Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont, who is challenging front-runner Hillary Clinton for the Democratic presidential nomination. Warren and Sanders are the most outspoken Democratic critics on economic and financial issues.
The 116 House members, representing more than half the 188 Democrats in the House, are led by Rep. John Conyers of Michigan, the senior Democrat on the Judiciary Committee.
The letter cites data from the Center for Popular Democracy, a liberal advocacy group. The data indicates that 83 percent of the directors who supervise the Fed's regional banks are white and that nearly three-quarters of them are men. All the members of the Fed's committee that sets interest-rate policy are white, and 60 percent are men.
The Fed counters that the proportion of minority directors on the boards of its regional banks and their branches has risen from 16 percent in 2010 to 24 percent this year, and that the proportion of female directors has increased from 23 percent to 30 percent. Forty-six percent of the directors represent diversity in race and-or gender, the Fed said.
"We are striving to continue that progress," Skidmore said.
The data cited in the congressional letter do not include directors of the regional banks' branches, only the banks themselves.
On Thursday, Clinton's campaign said she shares the lawmakers' concerns. A spokesman, Jesse Ferguson, said Clinton thinks "the Fed needs to be more representative of America as a whole." She also believes there no longer should be three private-sector bankers sitting on each regional Fed bank board, Ferguson said.
That change would require new legislation.
Yellen, the first woman to lead the central bank in its 100-plus-year history, has stressed in her public statements the importance of overcoming economic inequality.
The five current Fed governors are white. Two, including Yellen, are women.
By MARCY GORDON
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Fed’s Mester Calls Case for Gradual Rate Increases ‘Compelling’
Fed’s Mester Calls Case for Gradual Rate Increases ‘Compelling’
Federal Reserve Bank of Cleveland President Loretta Mester said there’s a “compelling” case for gradually raising...
Federal Reserve Bank of Cleveland President Loretta Mester said there’s a “compelling” case for gradually raising interest rates, with the U.S. economy approaching the central bank’s targets on employment and inflation.
“Policy has to be forward-looking,” Mester told reporters Thursday following a speech in Lexington, Kentucky. “If you have a forecast and inflation is moving up to your target and you’re at full employment, then it seems like a gradual increase from a very low interest rate is pretty compelling to me. Pre-emptiveness is important.”
She declined to say precisely when she believed rate increases would be necessary.
The policy-making Federal Open Market Committee will meet Sept. 20-21 to decide whether to lift the target range for its benchmark rate. Fed Chair Janet Yellen said last week the case for an increase had “strengthened in recent months.”
Investors see a roughly one-in-four probability that the Fed will act later this month, based on pricing in federal futures funds contracts.
Too Low for Too Long
Mester, who votes this year on the FOMC, said the Fed must take seriously the risk to financial stability caused by keeping rates low for too long, although she said she didn’t think the central bank was currently “behind the curve.” Nor did she see signs of financial instability already in the economy.
In her speech, Mester rejected the argument made to a number of Fed officials last week by a coalition of community activists that continued low interest rates are needed to extend the benefits of economic recovery to disadvantaged minorities.
“I do not believe that at this point in the business cycle, the current very low level of interest rates is an effective solution to these longer-run issues,” she said.
Eleven Fed governors and regional presidents, including Vice Chairman Stanley Fischer, met with organizers from the Center for Popular Democracy’s “Fed Up” campaign on the sidelines of the annual policy retreat in Jackson Hole, Wyoming, hosted by the Kansas City Fed.
The U.S. central bank has kept rates on hold through five meetings this year following a rate hike in December that was the first in nearly a decade.
By Christopher Condon
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Report: Starbucks falls short on vow to make workers' schedules more fair
Despite a public pledge last year to ease scheduling burdens for its baristas, Starbucks has fallen short of its...
Despite a public pledge last year to ease scheduling burdens for its baristas, Starbucks has fallen short of its commitment on a number of fronts, according to a new report released Wednesday based on interviews with the coffee chain’s workers across the country.
The report, titled “The Grind: Striving for Scheduling Fairness at Starbucks” (PDF), said Starbucks baristas across the country were still complaining that they often don’t receive their work schedules soon enough before shifts and that they are under pressure to avoid taking sick days.
The New York-based advocacy group Center for Popular Democracy produced the report, which cited survey data collected from more than 200 Starbucks baristas in 37 states and compiled by Coworker.org, an online platform that supports workplace rights.
“More than six months after Starbucks publicly recommitted to scheduling policies and mandated ten days’ notice, the scheduling issues they sought to address still persist in their frontline stores,” the report said.
After a New York Times investigation in August 2014 highlighted the scheduling travails of a Starbucks worker and single mother named Janette Navarro, the company announced that it would strive to improve work schedules for its employees, whom the company calls “partners.” The workers’ survey cited in Wednesday’s report was conducted in March this year.
“Taking care of our partners is a responsibility I take very personally,” Cliff Burrows, a high-level Starbucks executive, said in an internal company email at the time, according to the New York Times and other news outlets. Burrows was quoted as saying the company would work to aid “stability and consistency” in the schedules of its more than 130,000 baristas.
Burrows pledged then that the company would improve its scheduling software to make it easier on employees to plan their lives.
But the directive has only partially trickled down to the company's more than 12,000 U.S. locations, Wednesday's report says.
“They’ve made some improvements, but they’ve been minor,” said Carrie Gleason, co-author of the report. “A fair workweek at Starbucks exists in some stores,” she said, but “the issue is inconsistency.”
Starbucks did not respond to a request for comment on the report's findings before the time of publication.
The report said many baristas noted a high incidence of so-called “clopening” shifts, in which a person closes and opens in consecutive shifts, often leaving a span of only a few hours in which to return home before working again.
Last year Starbucks' Burrows pledged an end to the dreaded clopening shifts, saying “district managers must help store managers problem-solve issues specific to individual stores to make this happen.”
But the report indicated that such shifts were still widespread, with nearly a quarter of workers regularly getting them.
“I feel that baristas should have a minimum of 10 hours in between shifts. Everyone should have a fair chance to get home, settled, and be able to sleep for eight hours before having to get up for another shift," the survey report quoted an Illinois Starbucks worker as saying.
But the majority of workers who do clopening shifts are able to get fewer than seven hours of sleep, the report said.
“Because I was frequently scheduled for clopening shifts, I got just four or five hours of sleep a night. I was doing all I could to get ahead, but Starbucks’ scheduling practices made me question whether that was possible,” said Ciara Moran, a former Starbucks barista wrote in a petition she launched with Coworker.org, asking for further scheduling reforms.
The report released Wednesday said that 48 percent of surveyed Starbucks workers said they received their work schedules a week or less in advance, and that 40 percent reported they had experienced pressure to avoid taking sick days.
"Employees say that it can be extremely difficult to take sick days because they face pressure to work while sick, fear negative consequences or are forced to find their own replacement," the report said.
The report suggested that the experiences of individual workers varied considerably, depending on store locations and personnel.
“Many of us have different experiences at Starbucks, depending on our manager,” Moran said, asking others to support the cause “for consistent protections across the company, starting with healthy schedules across the board.”
“On a corporate level there isn’t that level of accountability. They’re not looking whether their polices are going far enough,” Gleason said. “For Starbucks, it can be a model for the industry for how to deliver a sustainable workweek.”
“I think they need to engage their workforce in a different way,” she said.
Source: Al Jazeera America
The #MeToo Movement and Everyday Industries, Part 2
The #MeToo Movement and Everyday Industries, Part 2
The Center for Popular Democracy reports that 18 percent of women have upper-management positions, even though they...
The Center for Popular Democracy reports that 18 percent of women have upper-management positions, even though they make up 60 percent of first-line supervisors. People of color, namely black and Latino, are also delegated to low-level, low-paying positions, such as cashiering. Older, experienced employees often do not receive benefits or long-term rewards, according to The Washington Post.
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Host of issues converge to bring about scrutiny of NY Fed pick
Host of issues converge to bring about scrutiny of NY Fed pick
Progressive groups focus on unemployment. The "Fed Up" campaign has advocated keeping monetary policy stimulus in place...
Progressive groups focus on unemployment. The "Fed Up" campaign has advocated keeping monetary policy stimulus in place longer to drive unemployment lower. Fed officials, including John Williams, have favored raising the federal funds rate in small steps to avoid stimulating the economy too much and generating a large burst of inflation that could prove difficult to control.
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Avengers Assemble! Scarlett Johansson shows off her chic pixie cut as she joins her co-stars including Robert Downey Jnr for benefit reading of classic play Our Town
Avengers Assemble! Scarlett Johansson shows off her chic pixie cut as she joins her co-stars including Robert Downey Jnr for benefit reading of classic play Our Town
She's known for her role as heroine Black Widow in the Marvel Avengers series, with the latest installment, Infinity...
She's known for her role as heroine Black Widow in the Marvel Avengers series, with the latest installment, Infinity War, set to hit UK cinemas in April 2018.
And Scarlett Johansson put her superhero status towards a good cause on Sunday, as she was spotted arriving at rehearsals for a benefit reading of Our Town.
The 32-year-old actress showed off her chic blonde pixie cut as she checked her script on the way into Atlanta's Fox Theatre, where she was joined by some of her Avengers co-stars.
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Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York....
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York. Those cities passed similar legislation after increasing their minimum wage. Adding fair workweek standards was the logical next step, according to Rachel Deutsch, senior staff attorney for worker justice at the Center for Popular Democracy. “Some companies are stuck in this philosophy that labor is the most malleable cost,” she said. “But there has been a ton of data that shows there are hidden costs to this business model that treat workers as disposable.”
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Hearing on charter schools brings out varied opinions
State Pennsylvania Auditor General Eugene DePasquale got an earful during a daylong meeting in Philadelphia on Friday...
State Pennsylvania Auditor General Eugene DePasquale got an earful during a daylong meeting in Philadelphia on Friday on ways to improve the accountability and effectiveness of charter schools.
Paul Kihn, deputy superintendent of the Philadelphia School District, warned that if Harrisburg passed pending legislation that would permit the unlimited growth of charters, the cost to the district would be so devastating that it might not be able to manage its own schools.
Lawrence Jones Jr., head of Richard Allen Preparatory Charter School in Southwest Philadelphia, said the state needs to provide equitable funding for both district and charter schools.
"This grand experiment is one that is about to collapse under its own weight, because we are doing such a poor job in oversight," said Donna Cooper, executive director of Public Citizens for Children and Youth.
Kyle Serrette, education director for the Washington-based Center for Popular Democracy, said his organization was stunned by the number of federal fraud cases involving charter officials that have occurred in Pennsylvania in recent years.
His group, which works with community groups and unions, called for "a comprehensive investigation that allows the public, regulators, and legislators to better understand the depth of the problem" to improve oversight.
And Philadelphia City Controller Alan Butkovitz told the auditor general that his office is taking another look at the district's charter school office and a group of city charter schools.
The review, which he expects to be completed in a few months, is a follow-up to a study his office completed in 2010 which found that the charter office "was not doing its job" overseeing the schools and that questionable practices were rampant at 13 charters it reviewed.
It was the fifth and final meeting that DePasquale has held across the state to gather input on improving the state's 174 taxpayer-funded charters, which enroll 120,000 students.
Philadelphia is home to 86 charters with 67,000 students.
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The #Resistance Trump ignited will shape politics for a generation
The #Resistance Trump ignited will shape politics for a generation
Jennifer Mosbacher cried in a doctor’s office the morning after Donald Trump’s election, unable to control herself...
Jennifer Mosbacher cried in a doctor’s office the morning after Donald Trump’s election, unable to control herself during a routine physical. The 43-year-old Atlanta suburbanite had avoided politics her entire life but was overcome with shock by an outcome she never saw coming.
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Yellen and Draghi Speeches to Highlight Jackson Hole Conference
Yellen and Draghi Speeches to Highlight Jackson Hole Conference
Central bankers and economists from around the world will gather in the mountain resort of Jackson Hole, Wyo.,...
Central bankers and economists from around the world will gather in the mountain resort of Jackson Hole, Wyo., beginning Thursday for the Federal Reserve Bank of Kansas City's annual economic symposium.
The theme of this year's conference, "Fostering a Dynamic Global Economy, " highlights the challenges of boosting economic growth during an expansion that has been marked by poor productivity gains, rising protectionism and demands for greater fiscal austerity.
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