Richmond Fed Names McKinsey's Thomas Barkin as Its President
Directors at the Federal Reserve Bank of Richmond confirmed Monday they had chosen Thomas Barkin, a senior executive at global consulting firm McKinsey & Co., as the institution’s next...
Directors at the Federal Reserve Bank of Richmond confirmed Monday they had chosen Thomas Barkin, a senior executive at global consulting firm McKinsey & Co., as the institution’s next president.
“We are fortunate to have found an extremely well-qualified individual to serve the Federal Reserve’s Fifth District and the American people,” Margaret Lewis, chair of the Richmond board of directors, said in a statement.
Read the full article here.
Jeff Flake Is Confronted on Video by Sexual Assault Survivors A Tumultuous 24 Hours: How Jeff Flake Delayed a Vote on Kavanaugh Women Are Watching
Jeff Flake Is Confronted on Video by Sexual Assault Survivors A Tumultuous 24 Hours: How Jeff Flake Delayed a Vote on Kavanaugh Women Are Watching
Surrounded by his colleagues in a cramped corridor behind the Senate Judiciary Committee, Senator Jeff Flake was in agony, getting pounded on all sides.
...
Surrounded by his colleagues in a cramped corridor behind the Senate Judiciary Committee, Senator Jeff Flake was in agony, getting pounded on all sides.
Read the article and watch the video here.
Carlos Menchaca: Sunset Park’s Councilman Brings A Voice To The Voiceless
Carlos Menchaca: Sunset Park’s Councilman Brings A Voice To The Voiceless
New York City Council Member Carlos Menchaca loves to grow spices and chilies to add to his home cooked meals — but when it comes to choosing his favorite Mexican food spot in Sunset Park, he...
New York City Council Member Carlos Menchaca loves to grow spices and chilies to add to his home cooked meals — but when it comes to choosing his favorite Mexican food spot in Sunset Park, he doesn’t play favorites.
“That’s a hard one,” Menchaca chuckled. “I always order tacos al pastor with a side of Mexican rice and beans,” he said of his traditional go-to dish. It binds him to his Mexican roots and the vibrant immigrant community that has adopted him as their hometown hero.
“What I love about Sunset Park is that anywhere you go, Bush Terminal Park, the senior center, down 5th Avenue, or even 8th Avenue, you feel at home,” Menchaca, who also represents Red Hook, parts of Bensonhurst and Borough Park, told the Sunset Park Voice. “It’s a neighborhood of families.”
A large majority of those Sunset Park families hail from the neighborhood’s Mexican and Asian immigrant communities — the two largest ethnic groups in New York City, after Dominicans, according to Census data — which stood firmly behind Menchaca during his 2013 run for District 38 council member.
Menchaca made history as the first Mexican-American Democrat elected to serve in the New York City Council. His victory over an incumbent councilwoman signified the rise of Mexican Americans in the political landscape, putting the young trailblazer on the map.
“We grew as a family. They took care of me and I took care of them,” Menchaca said of his constituents.
The 35-year-old Manchaca already knew he wanted to go into politics while growing up in the border town of El Paso, Texas, described himself as a “feisty kid, wanting to know everything” to advocate for his family.
He witnessed his single mother, Magdalena, struggle to raise seven children on her own.
“I don’t know how she did it,” Menchaca said of the hardships the family faced. “We interacted with government all the time, and it made me passionate about understanding how the system could be better.”
The first in his family to graduate from college, Menchaca holds a degree from the University of San Francisco in performing arts and social justice. His experience in political activism led him to New York to join the Coro Fellows Program – where he learned the value of community-government relations.
Since then, he’s made it his mission to bridge communities and as a council member he introduced participatory budgeting in Sunset Park – a democratic process that allows residents to decide how to spend a public budget and where taxpayers dollars go to fund their neighborhoods.
Menchaca’s success at empowering disenfranchised communities through the initiative has garnered write-ups in The New York Times, DNAInfo, and the Brooklyn Daily Eagle. In his first year of PB, two-thirds of the ballots in his district were cast in Spanish and Chinese.
“Whether you live or work here, your voice matters, and what we’ve been able to do through participatory budgeting is bring opportunities to invite everyone to the table no matter their age, sexual orientation, or immigration status,” Menchaca said.
As Chair of the Committee on Immigration and member of the LGBT Caucus, Menchaca sponsored the 2015 launch of IDNYC, a municipal identification card offered to New Yorkers and undocumented immigrants. It gave them an opportunity to have legal identification without fears of deportation, open a bank account, access to public places, among other benefits.
But Menchaca was just getting started.
His next mission: Invest in adult education to help immigrant New Yorkers learn English. Menchaca says he receives daily letters at his legislative office from non-English speaking parents requesting for classes to help them communicate with their children’s teachers.
That’s why he’s advocating for $16 million and calling on Mayor Bill de Blasio to fund the Adult Literacy Initiative they way he did with universal pre-kindergarten. A recent report by the Center for Popular Democracy and Make the Road New York suggests that these classes could raise immigrants’ wages and reduce income inequality in impoverished communities.
“This is where it gets serious,” Menchaca said. “We think about gentrification and all the things that make us so afraid, because we don’t know what it is. But one thing that’s clear is how we can affect family’s lives through education.”
As our conversation steered towards immigration reform and the importance of ethnic and community media, Menchaca’s calm demeanor turned sympathetic. The 102-year-old El Diario/La Presna, the nation’s oldest Spanish language newspaper, laid off nearly half of its staff due to budget cuts, which shocked its readers, including Menchaca.
“The second I heard those real issues of El Diario, I called for a public hearing,” he said. He calls ethnic and community media a lifeline to many people in the city because it connects them to job postings, news, and immigration issues vital to families.
An hour before the hearing, Mayor Bill de Blasio and City Council Speaker Melissa Mark-Viverito announced, via press release, an expansion of the administrations outreach to community and ethnic media companies across the city. In addition, the city created an online directory of 200 media ethnic media outlets, that will be available to city agencies and the city vowed to place more advertising in the ethnic papers.
Aside from the legal and education proposals, gentrification is another issue Menchaca’s community knows all too well. People have seen the factory district west of the Gowanus Expressway redeveloped as Industry City, a home for trendy shops, hip cafes, and markets like the Brooklyn Flea and Smorgasburg aimed at food fanatics.
In February, when the mayor proposed the BQX Connector, a streetcar line that would link Sunset Park to Astoria, Queens, some residents feared this new development would accelerate gentrification in their waterfront neighborhood, but the councilman says it can also ease transportation woes in his district.
“We are in desperate need of transportation options and I think the BQX serves as one idea we need to explore,” Menchaca said. “We want to increase the ability for people to travel outside the neighborhood for jobs.”
People have been vocal on fixing the R trains, the extension of bus lines, potentially bringing Citi bike and the ferry into their communities. For now, Menchaca sees the BXQ as an economic development to help community members, but it will only happen if people work together, he noted.
Menchaca confirmed that he plans to embark on a City Council re-election campaign in 2017.
What will his campaign be about? Preserving manufacturing jobs in Sunset Park, protecting immigrants through legal services, and shaping how the police force works with the community, he said.
“No matter the immigration status, you help everybody, and when you do that, you get these beautiful communities that are so diverse,” said Menchaca.
Clarification [June 2, 10am]: An earlier version of the headline misleadingly referred to the councilman as Sunset Park’s hometown hero, although he was not born in New York. We’ve adjusted the headline accordingly.
BY ELIZABETH ELIZALDE
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The big 2016 minimum wage push just got a powerful new ally
A little over a year out from the presidential election, we already know the states where the fiercest battles will likely be fought. But another electoral map is shaping up too: The states where...
A little over a year out from the presidential election, we already know the states where the fiercest battles will likely be fought. But another electoral map is shaping up too: The states where voters will decide where to raise their minimum wage.
And soon, those pay-boosting ballot measures might have some serious money behind them. A large California union is seed funding an organization aimed at accelerating such campaigns around the country, seizing on growing public support for raising the minimum wage to heights that just one cycle ago would have seemed like total fantasy.
It’s called the Fairness Project, officially launching Thursday, and it’s already focusing on three jurisdictions: California, Maine and the District of Columbia, with potentially more to come as funding becomes available. And the group's main backer, the Service Employees International Union’s 80,000-person strong United Healthcare Workers local in California, says it’s talking with a handful more.
“This is the best value in American politics,” says SEIU-UHW president Dave Regan, who last year laid out a strategy to raise wages through ballot initiatives in the 24 states that allow them. “If you can amass $25 million, you can put a question in front of half the country that simply can’t be moved through legislatures because of big money in politics.”
The organization doesn’t have $25 million yet, just a couple million; Regan declined to specify exactly how much. SEIU headquarters, despite waging its own multi-million dollar “Fight for $15” campaign to raise wages around the country, has yet to pitch in (which may have something to do with the fact that Regan has had a testy relationship with SEIU’s president, Mary Kay Henry; SEIU declined to comment).
But Regan says he hopes that as union locals do their budgets for the 2016 campaigns, they’ll contribute, partly as a way to resuscitate the labor movement’s image. “Most of the discourse around unions is negative,” Regan says. "So the Fairness Project is saying, 'Look, we can win for tens of millions of people, just if we’re committed to doing this.'"
They’ve picked a soft target. According to the Ballot Initiative Strategy Center, minimum wage measures have been tried 20 times in 16 states since 1996, and all but two succeeded. The earlier victories came in waves, starting with the “living wage” movement in the 1990s. The campaigns even work in conservative states: in 2004, John Kerry lost Florida, but a minimum wage hike passed with 70 percent of the vote.
Even though those measures may not have made it through state legislatures, in combination, they do seem to add momentum for minimum wage hikes on the federal level — Congress responded with legislation in 1997 after a spate of ballot initiatives, and again in 2007 and 2008. Sometimes, just the credible threat of a ballot initiative can spur state houses to action where previously they had no interest, although the final result may end up watered down.
Most recently, in 2014, minimum wage measures passed in Arkansas, Alaska, Nebraska, and South Dakota. This latest wave is even more ambitious than the first and second, says Brian Kettenring, co-executive director of the Center for Popular Democracy — and it benefits from the narrative around inequality that arose during an economic recovery that delivered very little wage growth.
"In some ways the most powerful, because it’s the most visionary in terms of the Fight for $15,” Kettenring says. “What the project hits on that really makes sense is engaging inequality through the ballot initiative.”
Still, there’s no guarantee of success, and credible initiative campaigns do take money. They also have a lot of common needs, like polling, voter targeting, Website design, and message strategy. That’s where Ryan Johnson, the Fairness Project’s executive director, says the group can help.
“There are a lot of very expensive things with ballot initiatives,” Johnson says. “Things that work with presidential campaigns — could we take the lead in investing in those directly and at scale? It saves people a couple grand here, and couple grand there.”
It’s a model that’s worked for other causes, as well, such as marriage equality and medical marijuana. The ballot initiative process has long been used by both conservative and liberal groups, with varying degrees of scale, sometimes with the side effect of driving turnout for Democratic or Republican candidates.
The support will help campaigns that usually lack major corporate financing, and have to sustain themselves with volunteers and small dollar donations. Amy Halsted, of the Maine Peoples’ Alliance, says the organization received unprecedented financial support for its push to raise the state’s minimum wage to $12 by 2020 — it has raised about $150,000.
But it could use help with big-ticket items that are more efficiently provided by a central coordinating body, like consulting and tech support. And besides, a national campaign has a galvanizing effect in itself.
“One of the things we’re excited about is their ability to sustain that energy that exists nationally, and try to create an echo chamber,” she says. "The ability to connect all the movements I think is powerful and exciting, and makes our hundreds of volunteers feel connected to a big national campaign.”
The Fairness Project may not even be the only game in town when it comes to national support for minimum wage campaigns. Seattle billionaire Nick Hanauer, who helped bankroll the successful $15 an hour campaign there, isn’t contributing — he thinks the group has got the wrong message. “The majority of workers want the economy to grow,” he wrote in an e-mail, arguing that high wages are good for business. “Growth sells. Complaining about fairness does not.” (Regan says their initial focus groups responded well to the fairness message.)
But Hanauer may be supporting other campaigns independently — including a ballot initiative in his home state of Washington. “We hope to influence the messaging on a lot of the campaigns that will unfold in ’15 and ’16,” he says.
Ballots will likely becrowded with other measures, too — with more and more state legislatures controlled by Republicans, liberal groups are trying to put gun control and marijuana legalization questions before voters directly.
Facing that popular onslaught, the business community is weighing its options.
In some places, like Maine, the opposition might not be that fierce. Although business groups grumbled when the $12 statewide ballot initiative was introduced, the state’s biggest city — Portland — already passed a law that would raise the wage at least that high by 2018. On top of that, they’refighting a city vote on a local $15 minimum.
“$12 is not out of the question here, as long as it's statewide,” said Toby McGrath, who’s running the campaign against the $15 measure for the Portland Chamber of Commerce.
California, however, will see a more pitched battle. Business groups managed to stall a $13 minimum wage hike proposal in the legislature. Tom Scott, California’s state director for the National Federation of Independent Business, says there's still a lot of time yet to build an employer response to the ballot measure that labor backers say just got enough signatures to qualify.
“There’s going to be a huge coalition opposition a minimum wage increase,” he says. “This is a very long process. And the one thing about ballot initiatives — depending on how it’s worded, if it’s a yes or a no, in California, if I can in 15 seconds create confusion or questions, people will typically vote no.”
But if young people vote in large numbers, Scott worries they could be hard to beat. “I would just be fearful of the voter turnout,” he says, "and the demographics of who’s turning out.”
After publication, SEIU headquarters reached out to add the following statement:
SEIU works directly with our local unions in states to evaluate ballot initiatives on a state by state basis and determine which ones will advance better jobs and better wages for working people.
Source: Washington Post
Pressures mount on Wells Fargo following fake-accounts scandal
Pressures mount on Wells Fargo following fake-accounts scandal
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to allow affected customers to file lawsuits and for the board of directors to...
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to allow affected customers to file lawsuits and for the board of directors to rescind the pay of a key senior executive.
The demands came just one day after Chief Executive John Stumpf resigned from a Federal Reserve advisory panel.
Senators had pushed for Stumpf not to be reappointed, saying it was inappropriate for someone who presided over improper sales tactics to be giving advice to an agency involved with bank regulation.
Stumpf has been under intense fire since the bank this month agreed to pay $185 million to settle investigations by Los Angeles City Atty. Mike Feuer, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency into an aggressive sales culture that led bank employees to open as many as 2 million accounts that customers didn’t authorize.
The Justice Department is investigating possible criminal charges, and some senators have called for a Labor Department investigation into whether the bank failed to pay employees overtime when they worked late nights and weekend to meet sales quotas.
A group of Senate Democrats continued to attack Wells Fargo on Friday, publicly calling on Stumpf to stop enforcing mandatory arbitration clauses in the agreements for customer accounts that were not authorized.
Sen. Sherrod Brown (D-Ohio) had pressed Stumpf on the matter at a Senate Banking, Housing and Urban Affairs Committee hearing Tuesday, arguing that it was unfair not to allow those customers the ability to file lawsuits against the bank.
Stumpf said at the time that he would have to “talk to my legal team.”
Brown said Friday that he and his colleagues want relief for bank customers and more answers from Wells Fargo.
“If Wells Fargo really does want to look out for the customers, if they really are in fact sorry, as the CEO said, for these unauthorized accounts, they ought to let the court system work if these people who were wronged want to bring suit,” he said.
Wells Fargo's collateral damage: customers' credit scores
Wells Fargo's collateral damage: customers' credit scores
The Democrats sent a letter to Stumpf on Friday, requesting more information about the arbitration clauses, including how many customer complaints about fake accounts were forced into arbitration proceedings.
Brown was among those writing to Stumpf, along with Patrick Leahy of Vermont, Richard Durbin of Illinois, Richard Blumenthal of Connecticut, Al Franken of Minnesota and Elizabeth Warren of Massachusetts.
A spokeswoman for Wells Fargo did not immediately respond to a request for comment.
Also on Friday, an activist investment group that is part of the Change to Win union federation wrote to Wells Fargo’s board, asking it to rescind at least part of the compensation earned by the executive who oversaw the employees who opened unauthorized customer accounts.
The letter from CtW Investment Group, which is a Wells Fargo shareholder, adds to the pressure on the bank to claw back some of the approximately $100 million earned by Carrie Tolstedt, the company’s former head of community banking.
Wells Fargo’s stock has declined by about 8% since the settlement was announced on Sept. 8.
On Thursday, five senators called for Stumpf not to be reappointed to the Federal Advisory Council, a 12-member body that meets four times a year with the Fed’s Board of Governors to discuss banking and economic matters.
Stumpf had represented the Fed’s San Francisco district, where Wells Fargo is based, since 2015.
He “made a personal decision to resign” and notified the Fed on Thursday, Wells Fargo spokeswoman Jennifer Dunn said.
“His top priority is leading Wells Fargo,” she said.
Sen. Angus King, an independent from Maine, organized the letter to the head of the board of directors of the Federal Reserve Bank of San Francisco asking that Stump not be reappointed to the advisory council when his term expires on Dec. 31.
“It would be ironic if the Federal Reserve, a key federal banking regulator tasked in part with ensuring the fair and equitable treatment of consumers in financial transactions, continued to receive special insights and recommendations from senior management of a financial institution that just paid a record-breaking fine to the Consumer Financial Protection Bureau for ‘unfair’ and ‘abusive’ practices that placed consumers at financial risk,” they wrote.
The letter also was signed by Warren and Democratic Sens. Maria Cantwell of Washington and Jeff Merkley and Ron Wyden, both of Oregon.
Their call was backed by Fed Up, a coalition of labor, community and liberal activist groups that has pushed to reduce the influence of bankers on Federal Reserve policies.
“Commercial banks already have too much influence within the Federal Reserve System,” the coalition said Thursday. The coalition also asked its members to sign a petition calling for Stump’s “immediate dismissal” from the advisory panel.
“Stumpf, as the CEO of a bank accused of ‘unfair’ and ‘abusive’ practices, should have no role advising the Federal Reserve’s Board of Governors on policies affecting working families,” Fed Up said.
By Jim Puzzanghera
Source
Three Labels Control 80% Of The U.S. Music Industry. What Responsibility Comes With That Power?
Three Labels Control 80% Of The U.S. Music Industry. What Responsibility Comes With That Power?
In recent months, the music media has responded to the political climate by zooming in on artist behavior: Have or haven’t they condemned Trump? Where do they stand? What do they suggest we do to...
In recent months, the music media has responded to the political climate by zooming in on artist behavior: Have or haven’t they condemned Trump? Where do they stand? What do they suggest we do to resist? Publications including The FADER have increasingly looked to celebrities to provide a moral compass, to demonstrate what large-scale compassion looks like, and to show their peers what they’re doing wrong.
Read the full article here.
Arrests, sit-ins, shouting — activists plan a week of nationwide protest to fight Graham-Cassidy
Arrests, sit-ins, shouting — activists plan a week of nationwide protest to fight Graham-Cassidy
Since early March, when the first Republican effort to repeal and replace the Affordable Care Act was introduced in the House, activist groups have driven millions of phone calls and thousands of...
Since early March, when the first Republican effort to repeal and replace the Affordable Care Act was introduced in the House, activist groups have driven millions of phone calls and thousands of protesters to Washington.
To push for the bill’s defeat, they led numerous rallies on Capitol Hill, occupied Senate offices, shouted in the Capitol building — and even learned, if they made enough noise, senators could hear them outside the Capitol.
Read the full article here.
Statement on Abercrombie & Fitch’s Ending of Just-in-time Scheduling
Following reports that Abercrombie and Fitch stores will no longer schedule employees for “on-call” shifts, an unnecessary scheduling practice that forces working people to put their lives on hold...
Following reports that Abercrombie and Fitch stores will no longer schedule employees for “on-call” shifts, an unnecessary scheduling practice that forces working people to put their lives on hold for hours every week without guarantee of work or compensation for their time, Elianne Farhat, Deputy Campaign Director for the Fair Workweek Initiative at the Center for Popular Democracy, released the following statement:
“Working families across the country understand that our time counts. Every hour put on-hold is an hour they cannot plan on using to spend quality time with loved ones, study for college classes or work a second job. On-call schedules unnecessarily disrupt working people’s lives and prevent us from being able to work hard and meet our off-the-clock responsibilities. We hope this announcement comes as part of a larger shift towards better scheduling practices at Abercrombie and Fitch, and we congratulate workers with groups like RWDSU and Retail Action Project for organizing and demanding an end to this unfair scheduling practice.
“Still, the fight goes on. Working people, just like those at Abercrombie & Fitch, are standing up across the country to demand fair schedules. Employers who use this unnecessary practice, like Bath & Body Works, Gap, Urban Outfitters and L Brands should follow suit and end on-call scheduling.”
Working parents and students as well as experts on scheduling and childcare issues are available for interviews.
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The Fair Workweek Initiative (FWI), a collaborative effort anchored by the Center for Popular Democracy (CPD), is bringing together leading worker, community and policy organizations across the country to raise industry standards and develop, drive and win policy solutions that achieve a workweek working families can count on.
The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Paid Sick Leave Now Mandatory for Most Businesses in Jersey City
The Jersey Journal - January 24, 2014, by Terrence McDonald - When Jersey City in September 2012 became the first New Jersey municipality to mandate that most private businesses provide paid sick...
The Jersey Journal - January 24, 2014, by Terrence McDonald - When Jersey City in September 2012 became the first New Jersey municipality to mandate that most private businesses provide paid sick leave for its workers, Mayor Steve Fulop predicted a legal fight.
Four months later, and no lawsuit filed, the measure is now law.
Fulop called today “very exciting.”
“I think it’s going to help tens of thousands of working families in Jersey City,” he said at an event at Saint Peter's University.
Jersey City is the sixth city in the nation to force private businesses to provide paid sick time. The law affects employers with 10 or more workers, and was opposed by state- and countywide business groups.
Paid sick time laws have become a favored cause of liberals and labor unions. Both groups hailed Jersey City when Fulop first proposed the measure last year, and they extolled the city again today.
“This law respects the dignity of workers, protects the public health and will mean savings for businesses big and small. When workers can earn sick days, everybody wins,” said Phyllis Salowe-Kaye, executive director of the New Jersey Citizen Action and spokesperson for the New Jersey Time to Care Coalition.
Other cities that have implemented similar mandates include Washington, D.C., San Francisco and Seattle. New York City, which passed a similar law last year, is set to strengthen it under its new, more liberal mayor.
Business groups have opposed the mandate wherever it's been implemented, but in San Francisco, which in 2006 became the first in the nation to require paid sick leave, thanks to a voter referendum, some who opposed the requirement subsequently said it hadn't affected businesses much, if at all.
An audit in Washington, D.C., found the law had not led to fewer businesses opening, though local businesses owners said they had cut back on hours.
Michael Egenton, a senior vice president at the New Jersey Chamber of Commerce, fears that paid sick leave, together with new health-care regulations and the state’s new minimum-wage increase, could convince businesses to relocate.
Egenton also expressed concern about local governments implementing these types of regulations.
“Whatever happened to the freedom of enterprise?” he said today, adding that he believes business owners will reward employees with benefits like paid sick time even if the government doesn’t force them to.
“If you’re a good worker, your boss will give you sick time,” Egenton said.
Source
White House: Obama won’t discuss interest rates with Yellen
President Obama met with Federal Reserve Chairwoman Janet Yellen on Monday, but one of the most pressing topics for the central banker was not on the agenda.
Obama did not plan to discuss...
President Obama met with Federal Reserve Chairwoman Janet Yellen on Monday, but one of the most pressing topics for the central banker was not on the agenda.
Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair’s independence in setting monetary policy.
“I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently,” Earnest told reporters ahead of the meeting.
The closed-door discussion is instead an opportunity to “trade notes” on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.
Obama and Yellen talked about the growth outlook, “the state of the labor market, inequality and potential risks to the economy,” the White House said after the meeting.
Vice President Biden also attended the meeting with Yellen in the Oval Office.
The meeting comes at time when Yellen is grappling with whether to raise interest rates further amid conflicting signs about the health of the global economy.
Yellen hiked the benchmark rate to 0.25 percent last December, the first such increase since the 2008 recession.
But since then, the central bank has taken a cautious approach to further hikes.
Reserve officials left the rate unchanged last month and reduced their estimate of the number of increases that could take place this year from four to two.
Yellen said late last month the economic recovery remains on track in the U.S. despite signs of weakness abroad, such as low oil prices and anemic growth in China. Inflation has also yet to hit the Fed’s 2 percent target.
She indicated she would take a wait-and-see approach on rate hikes until the economy shows more signs of improvement.
“I consider it appropriate for the committee to proceed cautiously in adjusting policy,” she said in a speech at the Economic Club of New York.
Election-year politics could complicate the Reserve’s decision-making process.
Progressive groups are wary of further rate hikes, worried that upping the cost of borrowing could slow the pace of hiring and economic growth.
The left-leaning “Fed Up” campaign circulated a questionnaire to presidential candidates Monday asking whether the Fed “should be intentionally slowing down the economy in 2016” by raising rates.
Republican leaders have frequently accused Obama of being too reliant on Fed policy to drive the recovery, which they say hasn’t spread to large segments of the economy.
Obama hasn’t publicly commented on interest rates. But he has sounded a more optimistic tone than Yellen on the economy, trumpeting a string of positive employment reports and rising wages.
Jared Bernstein, a former chief economist for Biden, expressed confidence Yellen would be able to insulate her decision-making from the political debate.
“The Yellen Fed, and particularly Chair Yellen herself, has been extremely data-driven, and I expect that to continue,” he said.
“What will be motivating her is less electoral politics and more the actual state of the real economy,” he added. “People worried about the fed loosening in an election year to help the incumbent party. I don’t think that is in play this year.”
Did you know 67% of all job growth comes from small businesses? Read More
Obama does not meet frequently with the Fed chair to discuss the economy. Yellen’s last one-on-one sit-down with the president occurred in early November 2014.
“I think the president has been pleased with the way that she has fulfilled what is a critically important job,” Earnest said.
Even while he offered praise for Yellen, the spokesman said Obama “cares deeply about preserving both the appearance of and the fact of the independence of the Federal Reserve and the chair.”
By Jordan Fabian
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5 days ago
5 days ago