Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank...
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank boards, though they couldn't agree on how to reform the quazi-private-public firms.
The twelve regional Fed banks have come under increased scrutiny in recent months after Democratic presidential nominee Hillary Clinton issued a statement in May saying she supports removing bankers from regional Fed boards and increasing director diversity. Her comments heightened the public profile of an issue that otherwise hasn't received much focus.
A key point of debate was concerns by consumer groups that having bankers on regional Fed boards creates a conflict of interest since reserve bank staff supervise big and small commercial banks in their districts. This contrasts to the central bank in Washington, which is a government agency with governors that are nominated by the president and confirmed by the Senate.
For example, among the nine directors who serve on the New York Fed board are Morgan Stanley (MS) CEO James Gorman and two community bank chief executives.
House Republicans indicated during a subcommittee hearing of the House Financial Services Committee that they weren't overly concerned by bank CEOs serving on such quasi-private boards while Democrats questioned the diversity of the panels.
"I don't object to bankers being on the boards," Gwen Moore, D-Wisc., told reporters after the hearing. "I'm concerned about the voice of other directors who are there and their efficacy to participate fully and about mobilizing and empowering them once they are there."
Moore, the top Democrat on the Monetary Policy and Trade subcommittee, said she the boards need more diversity, noting that none of them have hired a Latino or African American as president of the regional Fed banks where they serve.
Meanwhile, demonstrators from a consortium of consumer groups calling itself "Fed Up" attended the hearing, dressed in green shirts with slogans such as "16 of 17 Fed leaders are white."
The group also took issue with bankers on the regional Fed boards and, in their view, a lack of board diversity.
"When these voices are excluded from the conversation, then our interests are excluded," Ruben Lucio, a representative from the Center for Popular Democracy and a member of Fed Up, told reporters outside of the hearing.
According to current rules, regional boards have nine directors divided into three classes. Three banking directors are elected by member banks, another three are designated by the same banks to represent the public and interests of commerce, industry, labor and consumers, and the final class is appointed by Fed governors to represent the public.
Rep. Ed Perlmutter, D-Colo., said he wanted to delve more deeply into bank executives serving on the boards but noted that the Kansas City Fed, which covers the district he represents, appears to be quite diverse based on a variety of metrics.
It "has a diverse board ethnically, gender wise, labor wise, regional within the Fed and that was the template I'm using," Perlmutter said.
Two regional Fed presidents, meanwhile, pushed back against concerns about conflicts of interest during their testimony.
Richmond Fed President Jeffrey Lacker noted that strict rules govern their conduct. "They simply have no avenue through which they can influence supervisory matters," Lacker said.
And Esther George, president of the Federal Reserve Bank of Kansas City, pointed out that bankers who serve on reserve bank boards are prohibited from participating in the selection of bank presidents.
Republicans, meanwhile, focused much of their attention on whether too much influence over monetary policy is wielded by the East Coast, particularly the New York Fed.
Rep. Bill Huizenga, R-Mich., and chairman of the monetary policy subcommittee, argued that lawmakers should back legislation he sponsored, the Federal Oversight Reform and Modernization Act, or FORM, which includes a provision that would reduce the influence of the New York bank.
The Federal Open Market Committee, the branch of the central bank that determines monetary policy, has 12 voting members made up of seven members of the Fed board of governors and five of the regional Fed banks.
The president of the New York Fed, which supervises Wall Street firms from JPMorgan Chase (JPM) to Goldman Sachs (GS) and Citigroup (C) , is a permanent voting member but the other regional bank presidents serve rotating one-year terms. Huizenga's legislation would put the New York Fed president into the voting rotation along with all the other regional bank chiefs.
"For crying out loud, the San Francisco bank has a tremendously important area," Huizenga told reporters after the hearing. "Silicon Valley, that stretches from LA to Seattle, has tremendously valuable input and to have them only be a voting member every two or three years doesn't make a lot of sense to me."
Rep. Mia Love, R-Utah, said she was concerned that the Western states weren't well represented by the regional Fed bank structure.
"You have members on both sides of the aisle expressing concerns and I would like to know what might be done to rebalance the Fed to ensure that all Americans are represented in monetary policy decisions," she said.
Don Lamson, of counsel at Squire Patton Boggs in Washington and a former regulator at the Office of the Comptroller of the Currency, suggested that if the goal is to create greater accountability to Congress, legislators should require the Fed regional bank system to be funded through congressional appropriations instead of the self-funding that exists now.
With that structure, legislators could remove the regional Fed boards, transforming the quazi-private-public entities into government agencies.
An appropriations process, however, would destroy the independence of the Fed, which is vital to setting interest rates and supervising banks appropriately, Moore argued.
Expanding legislative influence would also open Federal Reserve funding to unrelated policy measures that might be attached in an attempt to get them passed. "Come meet with me I'm the chairman of the Fed's appropriations committee," Moore said facetiously.
By Ronald Orol
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Philly Council approves bills for ‘Fair Workweek’ and $15/hr wage hike
Philly Council approves bills for ‘Fair Workweek’ and $15/hr wage hike
Philadelphia’s Fair Workweek bill is stronger in some ways than those across the country, but weaker in others, said...
Philadelphia’s Fair Workweek bill is stronger in some ways than those across the country, but weaker in others, said Rachel Deutsch, an attorney with the Center for Popular Democracy, a main organizer of the national Fair Workweek movement.
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Activists went all out to save Obamacare. Now they’re fighting for opioid recovery funds.
Activists went all out to save Obamacare. Now they’re fighting for opioid recovery funds.
It’s Phil Krauss’ first time protesting on Capitol Hill. He’s an advocate who kicked heroin three years ago when he was...
It’s Phil Krauss’ first time protesting on Capitol Hill. He’s an advocate who kicked heroin three years ago when he was 32 years old. He’s new to organizing but he’s surrounded by veterans, many who were just at the Russell Senate Office Building two months ago trying to save the Affordable Care Act (ACA).
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Yellen to step down from Federal Reserve board
Yellen to step down from Federal Reserve board
Janet Yellen submitted her resignation from the Federal Reserve board to President Donald Trump on Monday, announcing...
Janet Yellen submitted her resignation from the Federal Reserve board to President Donald Trump on Monday, announcing that she will leave when her successor is sworn in as Fed chairman.
Read the full article here.
Aiming for new empowerment of black women
Aiming for new empowerment of black women
Three Democratic congresswomen have teamed up in a new effort to help African-American women overcome economic and...
Three Democratic congresswomen have teamed up in a new effort to help African-American women overcome economic and social barriers. Rep. Robin Kelly (D-IL), Rep. Yvette D. Clarke (D-NY), and Rep. Bonnie Watson Coleman (D-NJ) have launched the Congressional Caucus on Black Women and Girls, the first caucus devoted to public policy that eliminates the significant hurdles and disparities faced by black women. The three hope that the new caucus gives the same attention to black women that President Obama’s My Brother's Keeper initiative has given to black men and boys.
The caucus is an outgrowth of a MoveOn.org petition from the #SheWoke Committee, a group of seven women asking congressional leaders to find ways to improve the lives of black women. That committee includes Ifeoma Ike, the co-founder of Black and Brown People Vote; philanthropic strategist Nakisha Lewis; and Sharon Cooper, sister of Sandra Bland, the Illinois woman who died in police custody in Texas after being stopped for a traffic violation.
The formal launch for the caucus is April 28, when the three congresswomen will lead a symposium at the Library of Congress titled “Barriers and Pathways to Success for Black Women and Girls.” The event will featuring academics, advocacy leaders, business executives, and media personalities. Among the speakers on two different panels are Melissa Harris-Perry, the Maya Angelou Presidential Chair at Wake Forest University and now editor-at-large at Elle magazine (now that she’s no longer at MSNBC); Beverly Bond, founder and CEO of Black Girls Rock!, the annual award show that honors women of color; and Monique Morris, co-founder and president of the National Black Women’s Justice Institute and author of Pushout: The Criminalization of Black Girls in Schools.
An evening event (both the daytime and evening meetings are open to the public) will give members of Congress “an opportunity to address organizations focused on black women, other civic leaders, and individuals who are committed to advancing the quality of life of black women in America,” according to the congressional office of Rep. Watson Coleman.
“I hope that what we will do is to highlight the issues facing black girls and black women—the issues that are impacting their lives,” Watson Coleman said. The range of issues to be addressed in the April 28 symposium include black women’s experiences with law enforcement; disparities in health care, including clinical trials; inequality in salaries; unemployment; domestic violence; and many other topics.
The April 28 events are only the first in what Watson Coleman hopes will be a series of public hearings, ongoing symposiums, and other avenues of gathering information. “We will coordinate all of this information, and we will be presenting public policy.
“There’s so much to do here,” Watson Coleman said. “We’re not trying to make this a quick fix.” Some answers could come in the form of legislation, some might be sought through presidential executive orders, and some might come from elsewhere. “It can be either and all,” she said. “Public policy has left us out of this area. We’re going to be guided by what we learn from experts. We’re not committed to any one thing.”
Watson Coleman said that while the caucus would be coordinated by the three congresswomen chairs, all of the House’s black congresswomen—20 in all—and several black congressmen are on board, too. “All of them have signaled interest,” she said.
Although there’s no coordination of effort, it’s possible that the caucus’s eventual direction may be getting some monetary support from another source. One day after the caucus was announced on March 22, the NoVo Foundation, run by Warren Buffet’s son Peter and his wife, Jennifer, pledged $90 million to “support and deepen the movement for girls and young women of color” in the U.S. "This work is about dismantling the barriers that prevent them from realizing that potential and leading us toward a truly transformative movement for change," said Jennifer Buffett, co-president of the NoVo Foundation. The monetary pledge is part of the foundation’s initiative, “Advancing Adolescent Girls' Rights,” which works to empower girls all over the world.
Another source for information is Grantmakers for Girls of Color, a website that “captures new knowledge and insights about girls and young women of color, with a focus on the structural barriers that prevent them from achieving their full potential.” The site was initially started by the NoVo Foundation, the Foundation for a Just Society, the Ms. Foundation for Women, and other partners. It serves as a shared resource across the philanthropy community, and it will grow and expand based on suggestions and feedback from those givers.
National unemployment rates for both men and women of color are more than double the jobless rates for whites, according to the most recent figures from the Dept. of Labor. Although the unemployment rate for African-American men was higher in every age group than the rate for black women, rates for young black men and women were especially high, ranging from 10.7 percent for black women from 20 to 25 years old to 13.6 percent for men in the same age group, with even higher figures for those under 20 years old.
Some 2 million African Americans are unemployed and looking for work, as jobs have been slower to return to the black community after the Great Recession. A 2015 report from the Economic Policy Institute and the Center for Popular Democracy painted a bleak employment picture for the black community. Most jobs that came back after the recession have been lower-wage jobs in the service and retail sector. The report stated that on an hourly basis during the past 15 years, average wages for black workers have fallen by 44 cents, while Hispanic and white workers’ wages have risen by 48 cents and 45 cents, respectively. As the report said: “The recovery has not yet reached Martin Luther King Jr. Boulevard.”
In addition, the National Women’s Law Center, in a recent report about lifetime wage gaps between men and women, said that the gap over a 40-year career between white men and African-American women is $877,480.
So good for three African-American congresswomen for shining a spotlight on black women and the myriad problems they face. Let’s hope they can identify some real solutions.
By Sher Watts Spooner
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Low-Income Tenants Fight for Affordable Housing, Protest Proposed Trump Cuts
Low-Income Tenants Fight for Affordable Housing, Protest Proposed Trump Cuts
WASHINGTON – More than 700 people from 16 states rallied Wednesday at a Capitol Hill church to oppose the Trump...
WASHINGTON – More than 700 people from 16 states rallied Wednesday at a Capitol Hill church to oppose the Trump administration’s proposed $6.2 billion cut to federal housing programs.
Protesters held signs while shouting, “Housing is our right,” “Stop selling our neighborhoods to Wall Street,” and “No cuts to housing.”
Read the full article here.
Monday's MLK50 live blog
Monday's MLK50 live blog
In addition to Wallace-Gobern, panelists will include Alvina Yeh, executive director of the Asian Pacific Labor...
In addition to Wallace-Gobern, panelists will include Alvina Yeh, executive director of the Asian Pacific Labor Alliance; Tracey Corder, director of the Racial Justice Campaign at the Center for Popular Democracy; and Jeremiah Edmond, president of G.A.M.E. Local 101.
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Ana María Archila: Low Wage Workers are Paving the Way to Democracy
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City...
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the people who elected him do to influence what happens next? It is a question grassroots groups grapple with around the country. On GRITtv this week, Ana María Archila shares a few ideas. Archila was a founder of one of the most effective community groups in New York; now she's heading up a regional initiative that seeks to build popular democracy, not only at the ballot box, but in between elections.
From the school to prison pipeline and stop and frisk to immigration reform and workplace safety regulations, New Yorkers are eager to seize the moment for political change, says Archila. For evidence, consider the crowds that gathered at the Talking Transition Tent which was set up in downtown, immediately following last fall's elections.
Mayor Bill de Blasio seems to be listening. Less than two months into his term he has expanded paid sick leave for hundreds of workers around the city, one of the central demands of low wage workers. But how do people ensure that this momentum continues?
"He is only listening because low wage workers are extremely organized," Co-Executive Director for the Center for Popular Democracy Ana María Archila tells GRITtv. "New Yorkers are demanding more."
In addition to paid sick leave, organizers with Make the Road New York (the community organization that Archila describes as her "organizing home") are campaigning for a raise in the minimum wage and increased work place safety regulations. Organizing locally and creating small scale initiatives, like worker or consumer co-ops, can help engage people and address some immediate needs, but ultimately, low wage Americans need to build political power.
"The biggest co-operative we have is our own government and we need to make sure that it works for us," she says.
For more on ushering in a new progressive era, watch our interview with Joo-Hyun Kang on ending the Stop and Frisk regime.
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Activists Counter Federal Reserve Gathering With Push Against Interest Rate Hikes
The two-day event, ...
The two-day event, Whose Recovery: A National Convening on Inequality, Race, and the Federal Reserve, is organized by the Fed Up campaign, a coalition of groups led by the nonprofit Center for Popular Democracy. It serves as a counter-conference to the annual Federal Reserve Bank of Kansas City symposium, where Fed officials come together to discuss monetary policy -- and which is currently taking place at the same resort as the Fed Up gathering.
Fed Up’s member organizations brought over 100 primarily low-income grassroots activists from across the country for the gathering. It's a dramatic increase from its inaugural visit to Jackson Hole last year, when the campaign brought a group of 10 activists.
The size of Fed Up’s delegation of activists and presence of prominent economists -- including Nobel laureate Joseph Stiglitz -- attests to the rapid growth of a once-unlikely campaign that began just a year ago. Fed Up has managed to turn the esoteric issue of central bank interest rates into a key element of the progressive agenda -- and a rallying cry for low-income workers.
Rod Adams, a recent college graduate from Minneapolis, said he was attending the convention because he was disappointed in the job market. Despite his college degree, he currently makes $10.10 an hour working at the Mall of America.
“I have seen Wall Street’s recovery and corporate America’s recovery -- where is ours?” Adams demanded, eliciting cheers at a spirited press conference outside the Jackson Lake Lodge on Thursday.
The activists oppose the Federal Reserve increasing interest rates before the economy creates enough jobs to generate substantial wage growth for all workers. They believe that a premature interest rate hike would be especially harmful to workers in communities of color, who continue to suffer higher rates of unemployment than the overall population. Activists say this is partly the result of discrimination in the job market. Fed Up released a report on Thursday that uses original data to show that if there was the same low unemployment rate in every community in America, African-Americans and American Indians would experience the largest income gains.
The delegation plans to present officials attending the exclusive Fed symposium with an online petition opposing an interest rate hike that bears 110,000 signatures. The petition effort was the result of Fed Up's collaboration earlier this month with online progressive heavyweights including CREDO Action, Daily Kos, the Working Families Organization and Demand Progress. Robert Reich, former secretary of labor and an economist at the University of California, Berkeley, gave the petition drive a high-profile boost with a popular video promoting the effort.
A similar petition that Fed Up brought last year had 10,000 signatures.
The Kansas City Federal Reserve Bank, which convenes the annual Jackson Hole symposium for Fed officials, declined to comment on this year's parallel protest conference.
Kansas City Fed President Esther George met with Fed Up activists during last year's symposium.
Janet Yellen, chair of the Federal Reserve Board of Governors, is not attending this year's symposium, precluding even the possibility of an impromptu encounter with protesters.
“Janet Yellen is missing a great opportunity to see what real people look like,” Adams said. “We are not data on a spreadsheet.”
Proponents of a Federal Reserve interest rate hike in the near future argue that the Fed should begin raising rates to prevent excessive price and asset inflation. The Fed has a dual mandate to maintain full employment and stable price inflation.
William Dudley, president of the Federal Reserve Bank of New York, signaled on Wednesday that they would postpone an interest rate hike that Fed officials had previously indicated would occur in September. Dudley said turmoil in China and other emerging market economies that sparked massive swings in the U.S. stock market earlier in the week made a September rate hike “less compelling.”
Josh Bivens, the progressive Economic Policy Institute’s research and policy director, applauded the Fed’s move away from an interest rate hike, but said the reason for the Fed’s decision confirmed the need for more grassroots activism.
“A week ago the case against raising rates for the labor market was clear as day, but all of a sudden when wealthy people lost money in the stock market the tide turned against a rate increase,” Bivens said at Thursday's press conference. “I’m happy rates are less likely to go up because of that, but it is a terrible reason.”
Source: Huffington Post
Which States Have Most to Lose From DACA Elimination
Which States Have Most to Lose From DACA Elimination
Attorney General Jeff Sessions announced Tuesday the end of an Obama-era program that has allowed almost 800,000...
Attorney General Jeff Sessions announced Tuesday the end of an Obama-era program that has allowed almost 800,000 undocumented young people temporary relief from deportation and the ability to work.
“We are people of compassion, and we’re people of law—but there’s nothing compassionate about the failure to enforce immigration law,” Sessions said in a speech that emphasized the argument that the Deferred Action for Childhood Arrivals (DACA) program, which was put in place through executive action in 2012, was an instance of executive overreach. “The nation must set and enforce a limit on how many immigrants we accept each year, and that means all cannot be accepted.”
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5 days ago
5 days ago