NYT Misses the Story on the Fed and African American Unemployment
CEPR - March 3, 2015 - The NYT...
CEPR - March 3, 2015 - The NYT examined the impact the Fed has on unemployment among African Americans and came up with the bizarre conclusion that the Fed can't do much:
"The Fed has a hammer, and, as the saying goes, not all problems are nails."
This conclusion is bizarre, because the data are very clear; efforts to reduce the overall unemployment rate disproportionately help African Americans and Hispanics. As a rule of thumb, the African American unemployment rate is roughly twice the unemployment rate and the unemployment rate for African American teens is roughly six times the white unemployment rates. (The unemployment rate for Hispanics is generally 1.5 times the white unemployment rate.)
In keeping with this rule of thumb, the unemployment rate for whites in January was 4.9 percent. It was 10.3 percent for African Americans and 29.7 percent for African American teens. Here's what the longer term picture looks like.
If we could get back to 2000 levels of unemployment, when the unemployment rate for whites bottomed out at 3.4 percent, we might see something like the 7.0 percent unemployment rate for blacks overall and 20.0 percent we saw for black teens back in April of 2000.
Alternatively, to flip it over and talk about employment rates, the percentage of black teens that was employed peaked at 31.7 percent in 2000, more than 50 percent higher than the 19.6 percent figure for last month. Does anyone really want to say that increasing the probability that black teens will have a job by 50 percent doesn't make a difference?
There is a separate issue as to whether it would be possible to get down to 4.0 percent unemployment without triggering spiraling inflation. This is an arguable point. But it is worth noting that those who say it is not possible to have 4.0 percent unemployment today also said that it was not possible back in 2000.
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ermonters to join national protest to 'Kill the Bill, Don't Kill Us'
ermonters to join national protest to 'Kill the Bill, Don't Kill Us'
Following the direct actions of June 28 and July 10, in which 140 Americans, including many with serious health...
Following the direct actions of June 28 and July 10, in which 140 Americans, including many with serious health conditions, were arrested in their senator’s DC offices for civil disobedience, still more constituents plan to flood Capitol Hill Wednesday to stop the repeal of the ACA. Organizers say Vermont residents will also participate in this latest oppostion to "repeal and replace" Obamacare.
People with disabilities and life-threatening chronic illnesses, cancer survivors, Medicaid recipients, Affordable Care Act (ACA) policyholders, registered nurses, doctors, and others directly impacted by the Senate healthcare bill will be traveling from all states represented by Republican senators to descend upon Capitol Hill on Wednesday, July 19, with a strong message: “Kill the bill—don’t kill us!”
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Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central...
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central bank to keep interest rates low, as Yellen did—also criticized the Powell pick.
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Activists Call on Fed Chief to Focus on Struggles of Citizens
The China Post - November 16, 2014 - In a rarity for a U.S. central bank chief, Federal Reserve Chair Janet Yellen met...
The China Post - November 16, 2014 - In a rarity for a U.S. central bank chief, Federal Reserve Chair Janet Yellen met Friday with activist groups calling for a fairer economic recovery and a more transparent Fed.
About 20 representatives of community and labor organizations met with Yellen for an hour in the meeting room of the policy-setting Federal Open Market Committee, the activists said.
The groups were banded together as “Fed Up: The National Campaign for a Strong Economy,” lobbying Yellen and her team to orient Fed policy to boost employment and wages.
In addition to Yellen, Fed Vice Chairman Stanley Fischer and board members Lael Brainard and Jerome Powell participated in the meeting.
“We had a very good conversation,” said Ady Barkan, representing the Center for Popular Democracy.
The activists presented their views about conditions in the economy to the Fed officials and “they listened very carefully,” Barkan said.
Yellen “asked people questions about their personal experiences in the economy,” he added.
The coalition gave the Fed officials a list of six proposals to make the central bank more transparent and democratic.
“The economy is not working for the vast majority of people,” Barkan said.
“The Federal Reserve has huge influence over the number of people who have jobs, over our wages ... and yet we don't have discussion and engagement over what Fed policy should be.”
Wearing T-shirts emblazoned with “What recovery?” the activists criticized the Fed's isolation from the general public.
“Our wages are on a flat line for 30 years,” said Anthony Newby, director of Minnesota Neighborhoods Organizing for Change, which wants the Fed to give interest-free loans to cities so they can create jobs in infrastructure projects.
With two regional Fed bank presidents preparing to step down — Charles Plosser for the Philadelphia Fed and Richard Fisher at the Dallas Fed — the coalition is pressing for a transparent process for selecting their successors.
The Philadelphia Fed said on its website Friday that the executive search firm it hired has set up an email address to receive inquiries in the interest of helping the bank “in a broad search for its next president.”
“Philadelphia has hovered around eight percent unemployment for all of 2014; in the black community it's over 14 percent,” said Kati Sipp, head of Pennsylvania Working Families and a “Fed Up” activist.
“We want the Fed to spend some time in the neighborhoods where regular working people live.”
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Campaign regulatory board stymied by Legislature
Minnesota’s campaign finance regulatory board heads into election season with its slimmest possible board membership...
Minnesota’s campaign finance regulatory board heads into election season with its slimmest possible board membership for taking action after the Legislature failed to confirm two appointees before adjourning its session.
Two appointments before lawmakers got hung up over concerns raised by Senate Republicans about the DFL political background of Emma Greenman. Campaign Finance and Public Disclosure Board appointments require confirmation from the House and Senate on a three-fifths vote; the House supplied sufficient votes to confirm Greenman and former Republican state Rep. Margaret “Peggy” Leppik during the session’s final day.
Board chairman Christian Sande said Friday that it could be August before the board is back to full strength. That’s because of the legal steps Gov. Mark Dayton must take to fill the slots, by which time election contests will be in full swing and campaign finance complaints will be streaming in.
“It means for the board to take any action the votes have to be unanimous,” Sande said. “I don’t know that it handicaps us. But it certainly does indicate that where in the past with six active members of the board it might be easier to arrive at four votes to achieve something.”
Absence of a single member would deprive the board of the quorum it needs to even meet.
The remaining members would have to be in complete agreement to impose any penalties, issue any advisory opinions or take other substantive action because state law requires four votes in favor when the typically six-member board makes decisions.
Campaign finance board appointments always have come with more political sensitivity and scrutiny than most agencies. In fact, state law dictates a specific political makeup and that some members be former lawmakers.
Greenman and Leppik had been serving on the board pending confirmation but their appointments were considered null when the Legislature adjourned without positive votes.
A Dayton spokesman says the governor plans to resubmit their names once the openings are posted, which would allow them to serve again until the Legislature returns next year and takes another look. It’s not clear when that could happen.
Sen. Scott Newman of Hutchinson said he and his Republican colleagues weren’t willing to confirm Greenman because of past and present political activity.
“Is this someone who would be able to set aside partisan politics and render judgment as to violations of campaign finance laws? We really doubted it,” Newman said in a phone interview. “We were very concerned about it because of the degree of involvement in political partisanship.”
He added, “This is not a personal attack on her. It is simply a realization of her past activities. She was a very politically active person.”
Greenman, a 36-year-old Minneapolis lawyer, is director of voting rights and democracy for the Center for Popular Democracy. Past stints include work for the Wellstone Action organization formed after the death of Sen. Paul Wellstone and for a Minnesota unit of the Service Employees International Union. In her appointment materials, she lists her political affiliation as with the DFL.
Greenman didn’t immediately return a call or email inquiring about her intentions moving forward said in an email Friday that the lack of a vote was disappointing. She said she is considering reapplying and has been encouraged to do so.
“I have had the pleasure of of serving on the board since January and believe it plays an important role in supporting and protecting Minnesota’s democracy,” she wrote.
In a packet compiled in connection with her earlier appointment, Greenman disclosed details about her past political involvement and her present job, which she said posed no conflict with a campaign board role and didn’t encompass campaign finance matters.
“At this point in my career I am able to serve on the board without any direct conflicts of interest. I do not work for any candidates or any political campaign committees. I do not currently represent the Minnesota DFL or any party official or political candidate,” she wrote in a November letter to Dayton seeking the appointment.
By Brian Bakst
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JPMorgan's Dimon defends Trump advisory role, deregulation
JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon on Tuesday responded to criticism from angry shareholders...
JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon on Tuesday responded to criticism from angry shareholders of his role advising President Donald Trump on economic matters, saying he would help "any president" in office.
At the bank's annual meeting in Wilmington, Delaware, several attendees demanded answers from Dimon about his role on a White House business council and JPMorgan's involvement with financial deregulation efforts in Washington.
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Local leaders ask Obama to pardon criminal immigrants before Trump takes office
Local leaders ask Obama to pardon criminal immigrants before Trump takes office
Two San Diego elected officials have joined colleagues across the country calling for President Barack Obama to issue a...
Two San Diego elected officials have joined colleagues across the country calling for President Barack Obama to issue a blanket pardon of immigrants with green cards who have committed minor crimes.
San Diego Councilman David Alvarez and San Diego Unified School District Board President Richard Barrera, along with 57 others, signed a letter organized by Local Progress, a network of progressive municipal elected officials, that was sent to Obama this week.
The group wants to undercut President-elect Donald Trump’s ability to deport individuals who, without their minor criminal histories, would not be deportable. Between 100,000 and 200,000 families could be affected by such a pardon, according to the letter.
“From literally the day after the election, we started hearing concerns from teachers that students were worried and were afraid that they were going to be deported, that their parents were going to be deported, just based on the rhetoric from the campaign,” Barrera said by telephone. “What we’re trying to do is look for every avenue that’s available to us as elected officials to protect our young people and their families.”
The letter suggests that it would be within Obama’s power to make such a blanket pardon because of former President Jimmy Carter’s pardon of draft evaders in 1977 on his first day in office.
“We must protect the legal permanent residents of our city,” Alvarez said via email. “President-elect Trump proposed a deportation plan modeled after Operation Wetback from the 1950s. Dividing families by recklessly deporting hundreds of thousands of legal permanent residents would be morally wrong and economically destructive.”
Since 2014, the Obama administration has not prioritized minor convictions for immigration enforcement, as a matter of policy not any change in law. By law, green card holders can be deported for committing offenses that would not incur jail time in today’s criminal court system, like low-level drug offenses.
Trump campaigned on the idea of deporting millions of unauthorized immigrants, particularly criminals. His transition team has yet to set forth details about which immigrants and which criminals.
By Kate Morrissey
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Rivera and Camara Push 'Ambitious' Bill for Noncitizen Voting
Capital NY - June 16, 2014, By Nidhi Prakash - With just four remaining days in the state legislative session, sponsors...
Capital NY - June 16, 2014, By Nidhi Prakash - With just four remaining days in the state legislative session, sponsors of a new bill to grant citizenship rights to undocumented immigrants said they hope to begin building momentum for next session.
“First of all, this is obviously not something that is going to pass by the end of this week," said State Senator Gustavo Rivera, at a press conference in Battery Park City. "This was never about this particular legislative session. We’ve been working on it for almost two years, it’s a bold idea and we wanted to make sure it was thought out."
The bill, titled the New York is Home Act, would make it legal for undocumented immigrants in New York State to vote in local and state elections, get professional and drivers' licenses, and make them eligible for state-funded Medicaid and financial aid for higher education.
“What we’re doing today is we’re starting a conversation not only in New York, but hopefully across the country,” said Rivera, who was joined at the press conference by representatives from the Center for Popular Democracy and Make the Road New York.
Senator Rivera said he was choosing this moment to introduce the bill, despite nearing the end of the legislative session, partly because of a lack of movement in Washington on immigration reform. He pointed to the defeat last week of Republican House majority leader Eric Cantor by a Tea Party candidate who criticized Cantor's support for limited immigration reform.
But some progressives have also balked at provisions in the proposed bill. Mayor Bill de Blasio has called for municipal ID cards for undocumented immigrants, but said last year he's "not comfortable" with the idea of noncitizen voting.
“We are certainly asking for everyone in the Senate and the Assembly as well as in other sectors—the mayor and the governor—to support it, and we will have conversations with them going forward," Rivera said. "We are just starting the conversation."
Assembly Member Karim Camara, the bill’s sponsor in the Assembly, said the broad scope of the bill could help other stalled measures, like the Dream Act and a bill to allow undocumented immigrants access to drivers' licenses.
“We’re hoping that by looking at this big picture, and this is probably one of the most ambitious efforts over at least the last decade or two, maybe those smaller pieces now seem like they’re not that big of a deal,” said Camara.
Camara said he hoped the bill would create momentum for other immigration reform initiatives by the start of the next legislative session.
“We didn’t break it into priorities in this bill, but we’re hoping that by looking at this overarching bill it’ll perhaps make those other smaller bills easier—drivers' license, Dream Act, et cetera,” he said.
Camara blamed the balance of power in the Senate for those bills being unsuccessful in the past, and said if that was to change there may be more hope for immigration reform on a state level.
“The Republican-led Senate has been a main challenge," he said. "We would have passed it this year if it was not for that. So of course there is that elephant in the room, that political dynamic that we can’t avoid, and if that’s not the case then we’ll appeal to individuals’ reason."
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Unemployed Take Their Case to Fed Officials at Jackson Hole
Reuters - August 23, 2014, by Michael Flahery - Reginald Rounds was among those present at the Federal Reserve's high-...
Reuters - August 23, 2014, by Michael Flahery - Reginald Rounds was among those present at the Federal Reserve's high-flying monetary conference here, enjoying the chance to button hole two top officials of the U.S. central bank.
The St. Louis resident is neither an economist nor a central banker. He's a 57-year-old unemployed worker, who said he is trained in the green technology field and can't find a job.
He was among a group of activists who gathered on the sidelines of the Fed's annual symposium wearing green t-shirts with "What Recovery?" on the front and a chart depicting sluggish U.S. wage growth on the back.
"From the world where I reside, there is no recovery. We need a boost. We need a jump start," said Rounds. "The key is jobs creation."
The ten activists, most of whom were unemployed and seeking jobs, were sent as emissaries for a coalition of advocacy groups that has launched an unusual campaign from the left to press the U.S. central bank to keep monetary policy easy.
The coalition, consisting of more than 70 organizations, released an open letter to Fed officials earlier this week urging them to hold off on interest rate hikes until wages were rising more swiftly.
While small in number, the activists managed to get a great deal of face time with senior officials. On Thursday, they spoke with the host of the conference, Kansas City Federal Reserve Bank President Esther George, for two hours.
On Friday, Fed Vice Chairman Stanley Fischer stepped out of the conference to spend ten minutes to listen to their plight.
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Richmond Fed Chief Pick Renews Debate on Shrouded Hiring Process
Richmond Fed Chief Pick Renews Debate on Shrouded Hiring Process
The Federal Reserve Bank of Richmond’s decision to hire Thomas Barkin as its next president has renewed questions over...
The Federal Reserve Bank of Richmond’s decision to hire Thomas Barkin as its next president has renewed questions over the cloaked process of selecting officials who set the most widely watched policy interest rates in the world.
After a nearly yearlong search, Richmond’s board of directors Monday confirmedthey had chosen the McKinsey & Co. executive to start on Jan. 1. Barkin will be a voter on the interest-rate-setting Federal Open Market Committee in 2018.
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