Lacker to Tell Congress the Fed Doesn’t Need an Overhaul
Lacker to Tell Congress the Fed Doesn’t Need an Overhaul
Federal Reserve Bank of Richmond President Jeffrey Lacker is set to tell a congressional panel Wednesday the U.S....
Federal Reserve Bank of Richmond President Jeffrey Lacker is set to tell a congressional panel Wednesday the U.S. central bank’s structure is effective, and that he is reluctant to see it altered in any major way.
In an interview with The Wall Street Journal, Mr. Lacker said the U.S. central bank—with its Washington-based board of governors and 12 quasiprivate, quasigovernmental regional banks across the country—“works well.”
The Federal Reserve, created more than a century ago, might seem like “an archaic structure, but the choices and trade-offs they were facing then are still relevant choices and trade-offs now. Our federated structure reflected a desire to ensure that the diversity of views were reflected in monetary policy,” he said.
Mr. Lacker spoke to the Journal on Thursday in his office overlooking the James River, ahead of speech in which he argued the Fed was increasingly likely to face trouble if it doesn’t raise short-term interest rates soon.
The veteran central banker—he is the longest-serving regional Fed bank president—and Kansas City Fed President Esther George are scheduled to testify Wednesday before the House Committee on Financial Services’ Monetary Policy and Trade subcommittee. They will discuss the structure of their banks and “how it relates to the conduct of monetary policy and economic performance.”
The Fed in recent years has faced critics from the right and left who would like to change the way the central bank operates. Some Republican lawmakers, for example, want to give Congress more scrutiny over the Fed’s interest-rate-setting policy actions via formal government audits, something central bankers have long argued would make policy-making more political and ultimately less effective.
Some left-leaning activists and Democrats, including the campaign of presidential nominee Hillary Clinton, have called for bankers to be removed from the boards overseeing the regional Fed banks.
Members of the Center for Popular Democracy’s Fed Up campaign, working with a former top Fed staffer, have gone further. They have called for the regional Fed banks, which are technically owned by private banks via nonvoting shares, to be moved fully into government. The group also has sought a more open process to select bank presidents, and to take stock of their performance once they are on the job.
“I completely understand the heightened attention the Fed has gotten” in light of the dramatic actions it took over the course of the financial crisis and its aftermath, Mr. Lacker said. “We’re America’s central bank. And I think it’s a discussion worth having.”
Some of the criticism of the Fed owes to misunderstandings, Mr. Lacker said. But he added, “I’d agree we could do a better job of explaining our governance.”
By and large, Mr. Lacker said the current setup has proved to be the best in terms of setting policy and achieving the independence most economists believe is critical for effective central banking, a view shared by other regional Fed bank chiefs.
He said the regional banks, part-private and part-public organizations, are afforded independence to provide views protected from political interference. Turning the regional Fed banks into fully governmental institutions would compromise that and relieve the board of governors of a vital counterweight, Mr. Lacker said.
“Preserving that diversity of views, preserving the independence of the reserve bank president’s role in monetary policy, is an exceptionally high value,” he said.
Mr. Lacker also said the regional Fed banks’ boards of directors, drawn from a mix of local business and community leaders, as well as bankers, provide insight into local economic developments. These directors also offer operational insight to the central bank, a large service provider to financial institutions on a variety of fronts, he said.
The U.S. central bank, which is a major financial industry regulator, has long faced criticism because bankers serve on the boards of directors of the regional Fed banks. Critics say it is a conflict of interest because it allows banks to oversee their supervisor. Fed officials reject this view, saying that its regulatory activities, while carried out largely by the regional banks, are directed out of Washington.
“I think we all appreciate the—you know, I think [former Treasury Secretary and New York Fed President] Tim Geithner called it the optics issue, or optics problem” of the ownership structure and board composition, Mr. Lacker said. “As a practical matter, it’s not an issue.”
Mr. Lacker said that private bank ownership of the regional Fed banks isn’t like corporate ownership because the banks’ shares don’t have voting rights. He also said the regional boards have “a classic American governance role” and he rejected the idea that there would be any conflicts of interest faced by the board members.
Mr. Lacker said he welcomes meeting with Fed critics.
Many are activists “trying very hard to do what they can to improve lives. And you know, you can’t help but come away from conversations like that with a deep appreciation of the struggles and challenges that many of our—you know, many people in our country face,” Mr. Lacker said. He added, “I commend them for their interest in us and the willingness to engage in conversation with us.”
By Michael S. Derby
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America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda......
Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda...
Read full article here.
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.
Read the full article here.
Extraordinary organizing effort to assist undocumented immigrants impacted by the #FlintWaterCrisis needs YOUR help
Art Reyes III is Director of Training and Leadership Development at Center for Popular Democracy. He along with the...
Art Reyes III is Director of Training and Leadership Development at Center for Popular Democracy. He along with the Genesee County Hispanic Latino Collaborative and a powerful group of organizers from around the country are working in Flint to be sure undocumented immigrants in Flint are getting the help they need in the midst of the water crisis there. The need is real. Many undocumented people are not getting the information they need and still more are too afraid of being detained to go to water distribution sites. It’s a legitimate fear as the U.S. Department of Immigration and Customs Enforcement (ICE) is reported to detaining people in grocery stores and other areas around Flint:
Juani Olivares, says there are roughly a thousand undocumented immigrants in Flint – and many have spent years hiding from authorities to avoid deportation.
“Water was being delivered,” she says, “and they (immigrants) were not opening the door. Because that is the one rule. Do not open the door.”
Let’s face it, undocumented immigrants aren’t paranoid: The government really does want to get them.
Juani Oliveras works with the Genesee County Hispanic/Latino Collaborative. She says rumors are flying about sporadic raids at grocery stores.
“That’s another reason why people are not getting the water,” she says.
What’s worse is that many of these folks are still boiling water before drinking it because that’s what they have been told to do in the past when e. colicontaminated the city’s drinking water. In the case of lead contamination, however, it’s exactly the WRONG thing to do because it concentrates the lead even further.
This past Wednesday, Reyes and other organizers held a training for lead canvassers in Flint, setting the stage for what they hope will become regular daily canvasses until the water issue is resolved.
I spoke with Reyes after the organizing meeting to get a better understanding of what they are hoping to accomplish. He told me that there is currently no infrastructure in place to do what needs to be done in the undocumented community so they are literally building it as they go. He told me that there are an estimated 1,000 undocumented people in Flint. The goals of his group are fourfold:
First, they want to educate people about the water situation to ensure they know what precautions to take and what things to avoid (like boiling the water.)
Second, they want to make sure people are getting the water, water filters, and other necessary items that they need to stay healthy. The state has already been neglected this marginalized population and the poisoning of Flint’s drinking water is making things much, much worse.
Third, they are collecting stories from people. Unless the stories of those who are impacted are lifted up and heard, there will be nothing to stop this from happening again.
Fourth, they are trying to create a database of undocumented immigrants so that they can continue to work with them as needed until the crisis is over. This one is very difficult. The idea of getting into any database is, of course, the greatest fear of people here without documentation.
Finally, they are working to build a database of partners and volunteers who can help them with their effort.
How can you help? There are several ways. First, you can donate money. The Genesee County Hispanic Latino Collaborative has set up a fundraising page HERE.
Second, you can volunteer your time and resources to the effort. This will be an ongoing project and they will need assistance for the foreseeable future. Spanish-speaking volunteers are in particularly high demand. They also need things like storage and organizing spaces, trainers, printing, and all of the things that go along with a long-term effort like this. Click HERE to volunteer.
Third, you can donate water.
Finally, educate yourself about the issue. A good starting point is this essay by Art Reyes titled, “I Grew Up in Flint. Here’s Why Governor Snyder Must Resign. “.
One of the groups assisting with this effort is a small non-governmental agency (NGO) called Crossing Water. The group is headed up by social worker Michael Hood who has brought together around 150 social workers from around the country along with several hundred other volunteers and donors. They have already put up several billboards around Flint in both English and Spanish letting people know not to boil the water. They have plans for more billboards, including trailer mounted billboards that they can drive around Flint. They are also using donations to pay for public service announcements on television and radio. They’ve created videos on how to properly install and use water filters and teaching new parents not to use tap water to mix with baby formula. They have recruited plumbers to help replace lead-containing plumbing. This single group is making a huge difference.
Please do what you can to help with this important outreach effort. There are literally lives on the line, including the lives of babies and children.
Source: Eclecta Blog
Warren calls for diversity in Federal Reserve leadership
Warren calls for diversity in Federal Reserve leadership
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup...
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup of the Federal Reserve’s leadership and spearheaded in part by Elizabeth Warren, the senior U.S. senator from Massachusetts.
The Cambridge Democrat recently linked up with fellow Democrat, Michigan U.S. Rep. John Conyers, to send a letter to Janet Yellen, chair of the Federal Reserve Board of Governors, asking the former Clinton administration adviser to take action. They cited a 1977 law that requires the bank regulator to reflect the nation’s diversity.
The progressive duo began their missive by praising her work under President Barack Obama before stating that they “remain deeply concerned that the Federal Reserve has not yet fulfilled its statutory and moral obligation to ensure that its leadership reflects the composition of our diverse nation.” Instead, they said, the central bank’s leadership “remains overwhelmingly and disproportionately white and male,” and is drawn mainly from major banks and corporations.
The letter cites a statistic reported in February by the left-leaning Center for Popular Democracy that indicates that “83 percent of Federal Reserve head office board members are white” while “men occupy nearly three-fourths of all regional bank directorships.”
The lawmakers assert that the discussions among Fed leaders regarding labor market conditions never once mentioned the situation confronting blacks in 2010, the most recent year for which full transcripts are available. The lawmakers point out that the unemployment rate for blacks that year never fell below 15.5 percent, while the nation’s average jobless rate hovered just below 10 percent during most of that post-recession period.
Fellow Massachusetts U.S. Sen. Ed Markey put his signature on the letter, alongside those of more than 120 other Democrats in Congress
Warren and Conyers later took to social media to rally the public around the cause:
Former Secretary of State Hillary Clinton, the frontrunner for the Democratic presidential nomination, was also quick to throw her support behind the call for diversity:
“The Fed needs to be more representative of America as a whole,” Jesse Ferguson, a Clinton campaign spokesman, told the Associated Press Thursday, adding that Clinton also opposes the fact that three private-sector bankers currently sit on each regional Fed bank board.
The Fed is actively working to further diversify its ranks, bank spokesman Dave Skidmore said in a statement provided to AP.
“Minority representation on Reserve Bank and Branch boards has increased from 16 percent in 2010 to 24 percent in 2016,” Skidmore told AP. “The proportion of women directors has risen from 23 percent to 30 percent over the same period. Currently, 46 percent of all directors are diverse in terms of race and/or gender (with a director who is both female and a minority counted only one time).”
“We are striving to continue that progress.”
By BY EVAN LIPS
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IDNYC: Fuente de Dignidad para Miles
El Diario - January 30, 2015, by Ana Maria Archila - Se puede palpar la emoción este mes en las comunidades inmigrantes...
El Diario - January 30, 2015, by Ana Maria Archila - Se puede palpar la emoción este mes en las comunidades inmigrantes pues los neoyorquinos, incluidos miles de inmigrantes indocumentados deseosos de más acceso e igualdad, acudieron en masa a inscribirse para IDNYC. El éxito del programa es claro, ya que más de 12,000 residentes ya se han inscrito y más de 100,000 otros tienen cita para hacerlo.
Los beneficios de tener tal identificación son básicos, pero la tarjeta de identificación gubernamental es absolutamente necesaria para quienes de lo contrario enfrentarían muchos desafíos en el diario vivir.
Guadalupe Paleta, madre indocumentada y residente de Queens, hizo cita la semana pasada. Con identificación, podrá visitar la escuela de sus hijos sin necesidad de preocuparse. No le molesta tener que esperar unas cuantas semanas para solicitarla. "Esta identificación indica que estamos acá, que nos ven", dijo.
Para las familias inmigrantes como la de Guadalupe, el programa de identificación ofrece mucho más que una tarjeta con foto. Nos dice que, independientemente de nuestra situación, si hemos echado raíces aquí, pertenecemos aquí.
El entusiasmo por IDNYC es enorme. Ante la oportunidad de tener una tarjeta que simboliza su estatus como neoyorquinos, los inmigrantes acudieron en masa. Nuestras familias atestaron oficinas e hicieron largas filas. Fue prueba de la labor hecha por la oficina del alcalde, como también la comunidad –organizaciones de servicio y de activismo, medios de prensa y otros– para informar a los neoyorquinos sobre el programa.
Pero no todos nuestros vecinos tuvieron la sensatez necesaria para darse cuenta del valor histórico y cívico de lo sucedido. Opositores al programa no pudieron resistir la tentación de armar escándalo.
Hicieron que otros en el entorno de comentarios noticiosos cayeran en la trampa de perder la perspectiva y fueran tendenciosos en su opinión sobre el programa.
La indignación y las protestas sobre las fallas del programa provinieron de quienes nunca apoyaron IDNYC, y a muchos nos parecieron poco sinceras. Simplemente no se percataron de la verdadera noticia que se producía ante sus ojos: la ciudad de NY sirve de inspiración al incluir cada vez más a todo tipo de personas.
Sin embargo, este programa es demasiado importante para demasiados neoyorquinos como para convertirse en una serie de golpes editoriales bajos al alcalde.
A todos nos deben alentar y conmover las imágenes de familias inmigrantes que se inscriben para IDNYC. Confirman la importancia de una política municipal dinámica que facilita la inclusión de los inmigrantes.
Para ver el articulo original, haga un clic aqui.
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.”
Read the full article here.
Protesters On Hunger Strike For 17 Days Ask Education Department To Help
Two Chicago protesters who have been fasting for 17 days over the future of a local high school traveled to Washington...
Two Chicago protesters who have been fasting for 17 days over the future of a local high school traveled to Washington D.C. this week to take their fight to the national stage.
The protesters, joined by civil rights leaders and the presidents of the nation's two largest teachers unions, held a press conference on Wednesday and delivered a letter to Secretary of Education Arne Duncan, asking him to take action so city officials will make a decision about Chicago's Dyett High School, which closed in June due to low enrollment rates and test scores.
Twelve protesters have been participating in a hunger strike since Aug. 17 in an attempt to convince the Chicago Board of Education to reopen the school as an open-enrollment public school with a focus on science, which they say will best serve the needs of the community. The board is weighing various plans to reopen the school, but protesters say this process has been slow and inconsistent, and worry that the board will ultimately allow the school to remain closed.
Since the start of the hunger strike, four protesters have had to receive medical attention, according to the Chicago Sun-Times. Last week, a group of medical professionals asked Chicago Mayor Rahm Emanuel to intervene, calling the situation "a health emergency."
Only two of the protesters made the trip to Washington. The letter they delivered to Duncan on Wednesday asks him to "act swiftly to avert the further harm." An excerpt from the letter states:
"One of the challenges facing African American parents and students in Chicago is the lack of response and accountability from elected and appointed officials. Affluent neighborhoods receive selective enrollment and well-resourced schools. However, communities comprised of predominantly low-income and working families have to contend with under-resourced schools and privatization models that undermine the integrity of the community. We compel you to act on behalf of the residents of Bronzeville who have been rendered voiceless in this process."
At Wednesday's press conference, protesters Jitu Brown and April Stogner were joined by American Federation of Teachers President Randi Weingarten, National Education Association President Lily Eskelsen García, Advancement Project Co-Director Judith Browne Dianis, Schott Foundation President John Jackson, Coalition for Community Schools Director Martin Blank, and members of the Alliance for Educational Justice and the Center for Popular Democracy.
"Sometimes you have to put your own health on the line to get the attention of the world," said García.
The protesters want the Board of Education to choose their proposal for the school's future, which would reopen the school as the Dyett Global Leadership and Green Technology High School.
"We’re going to do whatever is necessary to keep this school and have an open enrollment school in our community,” said Stogner, a protester who has three grandchildren. “I’m hungry. But I’m not really hungry for food -- I’m hungry for justice. I’m hungry for justice for my grandbabies, for all the kids in my community."
“We live in a city where we are not valued as black and brown people,” she added.
Earlier this week, protesters met with Emanuel and officials from Chicago Public Schools to discuss the strike, but the meeting did not lead to any resolution.
"The mayor appreciates there are strong feelings about Dyett, and he understands there is a desire for a quick resolution about its future, however what's most important is the right decision," said a statement from the mayor's office. "CPS is engaged in a thorough review of Dyett, and while they are closer to a decision, they continue to weigh all the factors at play in an effort to achieve the best outcome possible -- one that will ensure a strong Bronzeville and a strong future for our children."
A spokesperson for Duncan said Department of Education leaders plan to meet with the protesters to hear their concerns.
“We respect the efforts of this group and worked to accommodate their plans to hold a press conference outside our building," said Department of Education press secretary Dorie Nolt in a statement. "Senior leaders at the Department will meet with representatives of the group today to hear more about their concerns. While this is squarely a local issue, we always welcome the opportunity to engage with concerned students, parents, educators and community members.”
Source: Huffington Post
New York Fed taps Williams for top post, ignoring Democrats on diversity
New York Fed taps Williams for top post, ignoring Democrats on diversity
Sen. Elizabeth Warren (D-Mass.) had called for the co-chairs and Williams to appear before the Senate Banking Committee...
Sen. Elizabeth Warren (D-Mass.) had called for the co-chairs and Williams to appear before the Senate Banking Committee if Williams ended up as the choice. Fed Up co-director Shawn Sebastian said the coalition supports that call. “Today, the Fed concluded another opaque and controversial Reserve Bank presidential selection process by ignoring the demands of the public and choosing another white man whose record on Wall St regulation and full employment raises serious questions,” he said in a tweet.
Read the full article here.
Report Documents $100 Million in Charter School Fraud in 14 States and D.C.
Education Week - May 7, 2014, by Katie Ash - An examination of charter schools in 15 charter markets across the...
The report appears to be one of the first shots fired from Integrity in Education, a newly formed nonprofit that aims to expose corporate interests in public education, and is headed up by Sabrina Stevens, a former teacher and American Federation of Teachers staffer. The organization is decidedly anti-charter, likening school choice to "a euphemism for school closures" on its website.
The report gathered court cases, media investigations, regulatory findings, audits, and other sources from Arizona, California, Colorado, the District of Columbia, Florida, Illinois, Louisiana, Minnesota, New Jersey, New York, Ohio, Pennsylvania., Texas, and Wisconsin to examine the trends in charter school fraud, waste, and mismanagement.
It found that there were six main categories of fraud, waste, and abuse:
Charter operators using public funds for their personal gain.School revenue being used to support other charter operators' businesses.
Charter school mismanagement that fails to create a safe environment for students, such as not providing background checks on staff or not properly supervising students.
Charters requesting public funds for services they do not provide.
Charters inflating their enrollment numbers to boost revenues.
Charter operators mismanaging funds and schools.
After examination, the report found that the most prevalent form of fraud in charters was the first category—charter operators' using public funds for personal use.
The report provided several recommendations to help prevent fraud, waste, and abuse from occurring. States should establish an adequately funded office solely dedicated to charter school oversight that has the authority to investigate fraud, waste, and misconduct, the report said. All charters should be independently audited each year, and the schools should be held to the same transparency requirements as regular public schools, the report recommended.
In addition, the charter school's application, contract, financial information, board members and affiliations, vendor contracts over $25,000, and board-meeting minutes should be made available publicly online, said the report. In addition, relatives of charter school operators should not be allowed to serve on the board, while parents, teachers, and students (in the case of high schools) should be provided representation there, the report recommended.
The report's appendix includes an extensive list of the different charter fraud, waste, and misconduct cases broken down by state with links to media reports about each one.
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30 days ago
30 days ago