Face to Face With the Fed, Workers Ask for More Help
New York Times - November 14, 2014, by Binyamin Appelbaum - Jean Andre traveled from Queens to the...
New York Times - November 14, 2014, by Binyamin Appelbaum - Jean Andre traveled from Queens to the Federal Reserve Board’s stately headquarters here on Friday to tell the people who make monetary policy that he needs their help. He cannot find regular work on film and photo shoots. The jobs he does find pay less.
The Fed’s chairwoman, Janet L. Yellen, agreed to meet with about 30 workers and activists, including Mr. Andre, in a gesture of concern for the plight of Americans searching for work and struggling to make a living.
For one hour on Friday, the workers sat in the Fed’s ornate conference room and told their stories to Ms. Yellen and other Fed officials, including three other members of the Fed’s board of governors — Stanley Fischer, the vice chairman; Lael Brainard; and Jerome H. Powell — who listened and asked questions.
“The Federal Reserve is too important of an institution to be insulated from the voices and perspectives of working families,” said Ady Barkan, a lawyer with the Center for Popular Democracy, an advocacy group based in Brooklyn that orchestrated the meeting. “We think that the Fed needs to listen more and be more responsive, and we’re very grateful for this first opportunity.”
The meeting was closed to the media. The workers described what they said, and the Fed declined to comment, citing a policy of silence about private meetings.
Mr. Barkan’s group is campaigning for the Fed to continue its stimulus campaign, citing the high level of unemployment, particularly in minority communities, and the slow pace of wage growth as evidence the economy still needs help. The group argued the Fed could help to drive up wages by keeping interest rates low.
Mr. Andre, 48, said two jobs were canceled this week. And instead of $400 a day for a print shoot, he said he now made $250 or $300.
“They tell me if I don’t take the job there’s lots of other people willing to work,” he said. “So what can I do? I have a family. I have to take it.”
Josh Bivens, an economist at the Economic Policy Institute, a liberal research group, said monetary policy would be “the single most important determinant of wage growth,” and that he was glad to see workers recognize the Fed’s importance.
A conservative group, American Principles in Action, criticized the meeting as “highly political” and inappropriate. It said it would seek a similar meeting to share its view that the Fed’s stimulus campaign is damaging the economy.
The labor and community groups at the meeting wore green T-shirts that said “What Recovery?” on the front, with a chart illustrating meager wage gains on the back. They are also pressing Ms. Yellen to change the way the Fed chooses the presidents of its regional banks.
The Federal Reserve Bank of Dallas said Thursday that its president, Richard W. Fisher, would step down March 19. Charles I. Plosser, president of the Federal Reserve Bank of Philadelphia, plans to retire at the beginning of March.
The Philadelphia Fed said shortly before the meeting on Friday that it had created an email address for inquiries about its presidential search process. It described the account, which will be maintained by the company conducting the search, Korn Ferry, as part of its commitment to conduct a “broad search.”
“I expect the same thing from Dallas,” said Connie Paredes, 42, who traveled to the meeting as a representative of the Texas Organizing Project, speaking at a rally outside the Fed before the group went inside. “We expect to be included in the process.”
Organizers from Dallas and Philadelphia said they would press for similar meetings with the presidents and board of the local Fed banks.
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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...
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.
Milestone charter's credit fraud has produced no criminal charges
Milestone charter's credit fraud has produced no criminal charges
Milestone Academy is the latest New Orleans–area charter school where theft has gone unpunished for months after it was...
Milestone Academy is the latest New Orleans–area charter school where theft has gone unpunished for months after it was discovered. No one has filed charges against former chief executive D'Juan Hernandez for putting $13,000 of personal expenses on a school credit card, according to an audit released Monday (April 18).
Hernandez quit in June 2014. The audit covers only the rest of that calendar year, but new Milestone chief executive LaKeisha Robichaux said Monday nothing had changed. In addition, Jefferson Parish clerk records showed no case against Hernandez.
This is hardly the first time that it's taken months for local charter school employees to face criminal charges for alleged financial crimes. Typically, lax oversight lets a member of the finance team profit from wrongdoing until someone notices odd gaps in the reports.
Ten months after someone stole almost $70,000 from the KIPP charter network, a criminal investigation was still underway.
Someone stole almost $26,000 from Lake Area New Tech High in 2014; more than a year later, police had not found a culprit.
New Orleans Military/Maritime Academy employee Darral Sims took $31,000 during the 2011-12 school year but had not been charged as of early 2013.
Lusher accountant Lauren Hightower had not been charged with a crime more than a year after she paid herself $25,000.
The Center for Popular Democracy issued a report in 2015 blaming Louisiana state education officials for cutting corners on oversight.
At Milestone, the theft followed a tumultuous year. The governing board dropped its for-profit management company only a couple of months before school was to start. Hernandez, the board attorney, stepped in to run the school. The school also struggled to improve long-languishing academic results and faced losing its Old Jefferson campus. It has since moved to Gentilly.
Hernandez quit in June, saying he was sick of a power struggle that also resulted in the departure of the principal. A month later, the financial wrongdoing emerged.
The board withheld $13,000 from Hernandez' $135,081 pay to cover the loss. It also "contacted the applicable law enforcement agencies regarding the unauthorized credit card usage," auditors from Hienz and Macaluso wrote. "However, as of the date of the audit report the school is not aware of any charges being filed in this matter. This was due to the lack of proper policies and procedures governing the acquisition and use of credit cards by the school."
Auditors said the school has since restricted credit card use to key employees. Under the new policies, no one may obtain a school credit card without written approval from the board's finance committee. All purchases "must have the same level of support as any other disbursement," auditors wrote. And school credit cards may not be used for personal purchases, cash advances or alcohol.
However, further conversations Monday showed the wheels of justice often did turn eventually:
The KIPP employee was prosecuted, spokesman Jonathan Bertsch said Monday. He added that although criminal charges took time, the charter group detected the crime within weeks.
Simms was convicted and paid restitution, Military/Maritime Academy Principal Cecilia Garcia said. The case went to court in late 2014 and early 2015. However, Simms has since had his record at least partially expunged, according to Garcia and Orleans Parish sheriff's records.
Hightower was prosecuted and convicted, Lusher spokeswoman Heather Harper Cazayoux said. Hightower's LinkedIn account indicates that she now works as a florist at a Harvey Winn-Dixie.
Former Arise Schools employee Quinton Barrow pleaded guilty on May 7, 2015, to stealing $9,000. He was ordered to pay restitution but then failed to appear to pay in June, according to Orleans Parish sheriff's records.
And the biggest local charter school crime resulted in serious jail time: Langston Hughes Academy's financial manager was sentenced to five years in federal prison for stealing about $660,000.
An employee stole about $2,000 from Lake Forest Charter in 2013. As of early 2015, the school's board president would not identify the employee or say whether anyone had been charged. School leaders did not immediately respond to a request for an update.
By Danielle Dreilinger
Source
Instead Of Turning On Each Other, Immigrant And Domestic Workers Unite To Form New Organization
The Huffington Post - November 17, 2013, by Farah Mohamed & Ryam Grim - In times of economic weakness, the...
The Huffington Post - November 17, 2013, by Farah Mohamed & Ryam Grim - In times of economic weakness, the ruling class has tended to pit domestic workers against immigrants, warning the former that wages are low and jobs are scarce because of the latter.
The effort in the United States has led to tremendous hostility toward immigrants, exhibited by then-GOP presidential candidate Mitt Romney's recommendation that conditions be made so unbearable for undocumented immigrants that they "self deport."
With precious little Latino support, the Republican coalition doesn't need to reconcile its domestic and foreign-born workers. But the Democratic Party, which includes many Latinos, Asians and African-Americans, is strengthened when the various elements of its coalition see themselves as aligned in a similar struggle -- one for jobs, better conditions and higher wages.
It's the kind of strengthened coalition that two major grassroots community organizations say they're hoping to build with a previously unreported merger. The Center for Popular Democracy and the Leadership Center for the Common Good will merge on Jan. 1, to become a larger and better resourced Center for Popular Democracy, officials at both groups tell HuffPost.
The new organization, which will have offices in New York and Washington, and staff in California, Minnesota and Illinois, will be composed of 35 staff members and 11 core partner organizations with more than 70 partner organizations in 27 states.
"We are actually trying to connect the world of immigrant justice and the world of economic justice by bringing together two hubs," said Ana Maria Archila, co-director of the new organization. "We haven't seen this level of popular trends and organizations in a while, and our merger is really kind of at the center in the world of economic justice, worker community and immigrant rights."
The Center for Popular Democracy, based in New York, has worked with a range of organizations fighting for social justice. Some of its victories include reforming the New York City Police Department's stop-and-frisk policing, raising New York's minimum wage and forcing the passage of legislation requiring paid sick leave for 1 million New Yorkers. The Washington-based Leadership Center for the Common Good advocates for low- and moderate-income communities, communities of color and immigrants.
By uniting, the two hope to increase their reach. For instance, the CPD maintains that its strongest ties are with immigrants' rights and worker organizations. LCCG, by contrast, works with partners rooted within the African-American community.
The merger would fill a vacuum in strong community advocacy. In 2009, conservative provocateur James O'Keefe targeted the Association of Community Organizations for Reform Now, a low- to middle-income grassroots activism group, in a series of videos which resulted in the dissolution of ACORN in 2010. House Republicans still include language in spending bills to ensure no federal money goes to the organization, even though it no longer exists.
But Archila and her new CPD co-director Brian Kettenring, who is a veteran of ACORN, see the new partnership as something different. "We're building something entirely new. We're not building a closed network," Archila said.
The new Center for Popular Democracy's mission, according to a concept paper provided to The Huffington Post, is to "build the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial and economic justice agenda." Staff will be organized around nine "core capabilities," including capacity building, campaigns and politics, and will focus on immigration rights and racial justice, economic justice, voting rights and democracy, education and housing, and Wall Street accountability.
"I would describe the new CPD as a campaign, policy and capacity-building center for community organizations," Kettenring said.
CPD will not launch new campaigns because of the merger, he added, but it does have projects in the works for January, including one that will focus on "articulating a firm vision -- a progressive vision -- of what public education should look like" and "defeating what we see as a corporate takeover of education in America."
By expanding the scale, strength and reach through the merger, the new CPD hopes to play an increasingly crucial role in the rejuvenated battle for social justice.
"There is tremendous energy in our communities -- in communities of color, in working class communities -- to change the way the things are done," Archila said. "There is tremendous political energy, and what we need is organizations -- institutions -- that will take advantage of that and will nurture that and drive it in the direction of concrete victory ... We know how to bring institutions together to make sure that it doesn't just mean one plus one equals two, but one plus one equals so much more. And that's what we think is going to happen with this merger."
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Outside Clout in Final Report?
Times Union - August 10, 2014, by Casey Seiler - Between its draft and final versions, a report by...
Times Union - August 10, 2014, by Casey Seiler - Between its draft and final versions, a report by SUNY's Nelson A. Rockefeller Institute of Government on New York's controversial Scaffold Law incorporated changes that tended to increase its estimates of the law's cost and impact.
Some of the changes echoed suggestions made to researchers by the leader of an anti-Scaffold Law organization that paid $82,000 to fund the report — sponsorship that has led critics to attack the study as advocacy in the guise of research. Its authors, however, insist the changes reflect nothing more than their own good-faith efforts to clarify the analysis.
The Scaffold Law, which places "absolute liability" on employers for gravity-related workplace injuries, is supported by labor unions but opposed by business groups that claim it needlessly drives up construction costs. Opponents would like to see New York follow other states by adopting a "comparative negligence" standard that would make workers proportionately responsible when their actions contribute to an accident.
The Rockefeller Institute report was funded by the Lawsuit Reform Alliance, a leading opponent of the law, through its research arm, the New York Civil Justice Institute. The study, made public in February, drew initial controversy for a statistical analysis that concluded construction injuries in Illinois dropped after the state repealed its version of the Scaffold Law in 1995. That finding was highlighted by the law's opponents, and harshly criticized by labor groups such as the Center for Popular Democracy.
The director of the Albany-based Rockefeller Institute, Thomas Gais, subsequently backed away from that chapter, citing what he described as flaws in the Illinois analysis — conducted by a Cornell University researcher — and the fact that the report was released to its funders before a final round of vetting had taken place.
After that dispute came to light in April, advocates on both sides filed Freedom of Information Law requests to find out if pressure had been placed on the institute, either during its research or after the report's release.
Documents produced by the Rockefeller Institute in response to the Center for Popular Democracy's FOIL included email correspondence between researchers and Tom Stebbins, the leader of the Lawsuit Reform Alliance. The exchanges, described last month by the Times Union, included a July 2013 email containing two pages of Stebbins' suggested edits offered in response to a draft version of the report. While many of his suggested changes were merely typographical, others went to the substance of the report.
The institute initially refused to release the draft report, but produced it last week on the advice of SUNY's FOIL officer. Side-by-side comparisons of the two reports show that in several instances changes were made that addressed issues raised by Stebbins.
The contract between the institute and the LRA required the researchers to communicate regularly with their funders as the report progressed. In an interview last week, Stebbins said his suggestions were nothing more than an effort "to get the complete picture" of the costs of Scaffold Law.
The second section of the report, prepared by lead researcher Michael Hattery, attempted to assess the public sector costs and impacts imposed by Scaffold Law, including the annual average price of Scaffold Law-related injury awards for public projects. In the draft, researchers found that sum by taking total spending on state and local capital projects (not including public authorities) and applying the average percentage that the Metropolitan Transportation Authority reported spending for labor law injury award costs. (Because the MTA uses what's essentially an in-house insurance entity, it offered the researchers rich data on insurance costs, claim awards and construction value.)
In the draft version of the report, the formula estimates the cost of gravity-related claims costs by using half of the MTA's fraction (0.3 percent of total construction value) to estimate awards in urban areas and a quarter of the MTA average (0.15 percent) for non-urban awards. Using those multipliers, the average cost added up to $28.3 million for 2007-2011.
"Why do you use half of the MTA average .3%," Stebbins asked the researchers in his notes on the draft. He added that it seemed "very inconsistent" with the industry's estimate that Scaffold Law adds at least 4 percent to the cost of any public construction project.
"How can we reconcile?" he wrote.
Stebbins also pointed the authors to data available from the New York City School Construction Authority, which has in recent years buckled under escalating insurance costs for its projects.
The $28.3 million figure, he wrote, "does not include additional insurance costs, which is likely the driver of the 4% estimate. Any thoughts on getting to that number? ... Perhaps we could have an MTA estimate for payouts and an SCA estimate for insurance. That may help reconcile the two figures."
The final report uses calculations that doubled the potential claims costs.
A corrected version of the draft's calculation ($30.2 million) is offered as a "lower bound" for average annual injury awards, but the report provides a new "upper bound" of $60.5 million obtained by employing the full MTA average (0.6 percent) for urban projects and half of that fraction (0.3 percent) for non-urban work.
In a response to the Times Union's emailed questions last week, Hattery said that the injury award cost figure was always intended as "a very rough estimate" due to a lack of specific data.
"After reflection — after the first draft — we chose to use a range rather than a single point estimate," he said. "This is often done so that users and readers of the report do not overvalue the 'precision' of a single number when it is based on a significant set of assumptions."
The same chapter of the draft includes a two-page case study on the construction of the Lake Champlain Bridge, in which those interviewed — including the chief engineers on the New York and Vermont sides of the project, Vermont's attorney general, and the contractor's project engineer and risk control manager — said Scaffold Law had only marginal impact on the structure's price tag.
In his edits, Stebbins recommended scrapping the case study: "As discussed, suggest we remove this section unless we can get someone to talk."
"I felt that no one they interviewed knew what Scaffold Law was and how it affected the cost of construction," Stebbins said last week. " ... We were not able to get people who understood what the costs were."
The final report jettisoned the Champlain Bridge analysis.
Hattery said the case study was dropped because it failed to provide a contrast between insurance costs in the two states. Because New York was the principle partner in the bridge project, he said, "there was no contrast to compare in the execution of the project ... nor were there any fall-from-height claims to review and describe, to our knowledge."
In its place, a new case study was added that examined Scaffold Law's impacts on the School Construction Authority, and described the $1.1 million settlement of an accident claim that ended up costing half of the construction value of the project where the injury occurred.
Hattery said the SCA analysis was included because of the researchers' desire to offer "at least one specific Scaffold case in a higher-density urban environment. ... The case was completed later, in part, because it required a longer time frame for access to personnel, data, etc."
Stebbins said it would have been irresponsible for researchers to not have addressed the SCA in the analysis.
The final report was the centerpiece of February's annual Scaffold Law reform lobby day at the Capitol. The Lawsuit Reform Alliance touted its release with a news statement: "With the study in hand," it concluded, "Scaffold Law reform advocates look for positive traction in the legislature this year."
Instead, the session ended with no action taken on Scaffold Law.
Josie Duffy of the Center for Popular Democracy called on the Rockefeller Institute to release all the drafts of the disputed report.
"The public deserves a full accounting of SUNY's role in helping business groups attack worker safety laws," she said.
Source.
Health Care Activists Protest at Senator's Offices in the Capitol - Photo
Health Care Activists Protest at Senator's Offices in the Capitol - Photo
Activists protest against the Republican health care repeal-and-replace legislation at U.S. Sen. Ted Cruz's office in...
Activists protest against the Republican health care repeal-and-replace legislation at U.S. Sen. Ted Cruz's office in the Russell Senate Office Building on Capitol Hill July 19, 2017 in Washington, DC. Organized by the Center for Popular Democracy, Housing Works, National Nurses United and other organizations, dozens of people were arrested for protesting against the GOP attempts to end Obamacare.
See the photo here.
CFPB says Education is obstructing access to Navient records
CFPB says Education is obstructing access to Navient records
YOUTH ‘LOBBY DAY’ LOOKS TO DISCIPLINE GUIDELINES: More than 100 young activists are expected to gather in front of the...
YOUTH ‘LOBBY DAY’ LOOKS TO DISCIPLINE GUIDELINES: More than 100 young activists are expected to gather in front of the Education Department today and call on Education Secretary Betsy DeVos to maintain Obama-era guidelines aimed at addressing racial bias in school discipline policies. DeVos is chairing a White House school safety commission that’s considering whether to rescind the guidelines over concerns that they burden school districts and potentially keep violent students in the classroom. The activists are also expected to visit the offices of Senate Minority Leader Chuck Schumer, Sen. Kirsten Gillibrand (D-N.Y.), Rep. Nydia Velazquez (D-N.Y.) and Sen. Chris Murphy (D-Conn.), urging them to sign a pledge and “prohibit federal funding for any school policing or criminalization of schools and invest in restorative justice, and mental health supports and resources for schools, students, and families,” according to a release. The “youth-led lobby day” is being organized by left-leaning groups including the Center for Popular Democracy, Make the Road New York and the Urban Youth Collaborative.
Read the full article here.
After Volkswagen scandal, can consumers trust anything companies say? (+video)
After Volkswagen scandal, can consumers trust anything companies say? (+video)
Adam Galatioto’s loyalty to diesel Volkswagens predates his ability to drive. The 29-year-old’s parents...
Adam Galatioto’s loyalty to diesel Volkswagens predates his ability to drive.
The 29-year-old’s parents first bought a Jetta TDI in 1998, and he drove the little sedan through high school, college, and a master’s program before selling it in 2013. Mr. Galatioto and his girlfriend now share a 2011 Jetta TDI SportWagen, which he helped encourage her to buy.
“They get really good mileage,” he says. “Mine got 50 m.p.g. on the highway. By proxy that means you are being environmentally friendly.”
He’s not alone. Volkswagen has long enjoyed a reputation for reliable engineering, cheerful affordability, and, largely thanks to its efforts in clean diesel, sustainability. In Consumer Reports’ 2014 survey on how people perceive leading car brands, the German automaker was singled out (alongside Tesla) for its fuel efficiency.
That made recent revelations that VW had duped environmental regulators for years, installing software on 11 million diesel vehicles worldwide allowing them to run cleaner during emissions tests than they did on the road, all the more unnerving.
“I don’t generally trust corporations on what they say, and this was so intentionally devious it just lumps them in with any other car company for me,” Galatioto says.
This is a worst-nightmare scenario for companies trying to attract customers that increasingly want to make not just quality or affordable purchases, but ethical ones. It’s an impulse nearly every consumer industry is racing to capitalize on, from restaurant chains shifting to cage-free eggs and fair-trade coffee to retailers pledging to raise wages and give workers more predictable scheduling.
But with such promises being made left and right, and especially in the wake of Volkswagen’s fall, conscientious consumers may be wondering: Can any of them really be trusted?
Not always, clearly, but there is some comfort to be had on that front. Brands that fail to deliver risk even greater financial and reputational fallout than ever before (Volkswagen lost a third of its stock value when the scandal broke, and it faces billions in future losses from EPA fines, repairs, and lost sales). Combined with effective third-party oversight, it’s a powerful motivator for companies on the whole to behave better, experts say.
Consumers, particularly younger ones, are armed with easier access to information about what they buy than previous generations, and it’s affecting their choices. Millennials (adults ages 21 to 34) are more than twice as likely as their Gen-X and baby boomer counterparts to be willing to pay extra for products and services billed as environmentally and socially sustainable, according to a 2014 Nielsen survey. They are equally more prone to check product labels for signs of sustainable and ethical production.
“There’s an increased attention to more intangible characteristics of a product,” says Dutch Leonard, a professor who teaches corporate responsibility and risk management at Harvard Business School. “When I buy a shirt, it has a particular color, it’s soft, or wrinkle-free. But now people are also paying attention to where it was made, if the workers are being exploited, and if the company is environmentally conscious or not.”
This makes responsible changes effective marketing tools, which can create domino effects as companies try to keep up with and outdo standards in their particular industries. When Wal-Mart, the biggest retailer in the world, raised its minimum pay rate at the beginning of this year, competitors such as Target and Kohl’s quickly followed suit. The success of Chipotle, which has a carefully detailed food-sourcing policy, has been followed by major supply chain overhauls for McDonald’s, General Mills, and other giants of the corporate food world.
“Customers want 'food with integrity,' ” Warren Solochek, a restaurant-industry analyst with NPD Group, a market-research firm, told the Monitor in May. “[Companies] that choose locally sourced, fresh ingredients can put that on their website and know that people are looking at it.”
But especially for major corporations, “when you say you are doing things, you will attract attention from outside business groups," Professor Leonard says. "You can bet some NGO [nongovernmental organization] is going to try and figure out if that’s true or not.”
Indeed, Volkswagen isn’t the first brand to have its positive positioning face pushback, especially as global companies work to strike an operational balance between ethics and profitability. Wal-Mart’s wage hikes were followed by cutbacks in worker hours when the retailer’s earnings suffered, a move that led labor advocacy groups to call the earlier wage hikes “a publicity stunt.” Earlier this week, the Center for Popular Democracyreleased a report showing that Starbucks has so far failed to live up to a much-publicized vow from a year ago to give workers more consistent schedules.
While Volkswagen eluded the Environmental Protection Agency, it was eventually found out by the International Council on Clean Transportation, an independent nonprofit aided by researchers at West Virginia University.
In addition to catching such discrepancies, watchdog groups can be helpful in weeding out credible claims of positive change from the less so. In the mid-2000s, the Unions of Concerned Scientists’ annual environmental consumer guide largely dispelled the idea that washable cloth diapers are significantly better for the environment than disposable ones.
Furthermore, some major corporations and industry groups have partnerships with independent, NGO-like organizations to set ethical industry standards and submit to outside monitoring. Unilever, for example, teamed up with the the World Wide Fund for Nature (WWF) in the 1990s to create the Marine Stewardship Council, a certification program for sustainable fisheries. In 2008, Starbucks embarked on a decade-long project with Conservation International to improve the sustainability of its coffee supply around the world. Home Depot sells lumber certified by an outside organization.
Such collaborations may not catch everything, Leonard says, but they are effective because they are “constructed in such a way that the [certification groups] are not beholden to an industry. We may not be able to get full agreement on the standards, but we might make real progress by creating safe harbors through development of standards that are negotiated in advance.”
Source: The Christian Science Monitor
Retailers' Goal of Challenging Amazon Hindered by Labor Woes
Brick-and-mortar retailers hoping to fend off Amazon.com Inc. need to deploy the one weapon that could set them apart:...
Brick-and-mortar retailers hoping to fend off Amazon.com Inc. need to deploy the one weapon that could set them apart: top-notch customer service, provided by actual humans.
But making that goal a reality relies on something they’ve not really invested in -- well-trained employees with the kinds of wages and regular hours that make them want to stick around.
Read the full article here.
Fed Hawk Lacker to Retire Oct. 1, Successor Search Under Way
Federal Reserve Bank of Richmond President Jeffrey Lacker plans to retire Oct. 1, marking the exit of one of the U.S....
Federal Reserve Bank of Richmond President Jeffrey Lacker plans to retire Oct. 1, marking the exit of one of the U.S. central bank’s most steadfast inflation fighters at a time when the Fed is weighing how quickly to raise interest rates.
The Richmond Fed said Tuesday that a committee had been formed to find a successor for Lacker, who has led the regional Fed bank since 2004, and has engaged professional services firm Heidrick & Struggles to conduct the search. The head of the Richmond Fed will be a voting member of the policy-setting Federal Open Market Committee in 2018.
Lacker, 61, was a voice of restraint in the use of monetary policy and the central bank’s balance sheet as the Fed deployed extraordinary powers to combat the financial crisis, the worst recession since the Great Depression as well as a sluggish recovery.
“He was consistent in terms of wanting a narrow Fed that stuck to the business of ensuring price stability because that would be the Fed’s best contribution to society,” said Vincent Reinhart, chief economist at Standish Mellon Asset Management Co. LLC in Boston. “Jeff Lacker kept the faith.”
Lacker dissented frequently in favor of tighter policy when he was a voter on the FOMC, including at every meeting in 2012. During the financial crisis he warned about channeling credit to specific sectors of the economy, inflation risks and government rescues of troubled banks.
Core Doctrines
One of Lacker’s core doctrines was that an expansion of Fed credit to other sectors of the economy would create expectations of further support and thus further destabilize markets in the future as investors tested the perceived safety net.
“The striking feature of central bank lending during the recent turmoil is the extent to which it has extended well beyond the boundaries that previously were understood to constrain such lending,” Lacker said in a speech in November 2008.
Lacker wasn’t alone in those views. Former Fed Chairman Paul Volcker said the bailouts had taken the central bank to “the very edge of its lawful and implied powers, transcending in the process certain long-embedded central banking principles and practices.”
Arguing for constraint when the entire financial system was at risk seemed overly cautious to some of his colleagues. Former Chairman Ben S. Bernanke noted that Lacker opposed a crisis-era innovation called the Term Securities Lending Facility, where the Fed loaned out its Treasury portfolio to primary dealers in exchange for mortgage-backed securities as collateral.
“Jeff Lacker spoke against the TSLF,” Bernanke wrote in his book, “The Courage to Act.”
Lacker will depart three years ahead of his mandatory retirement age of 65. He hasn’t lined up another job, according to Richmond Fed spokeswoman Laura Fortunato. “He does want to get back to writing and research,” she said.
The search for his successor, which gets under way as the Atlanta Fed is undertaking its own campaign to replace its president Dennis Lockhart, who retires Feb. 28, will be conducted nationally to “identify a broad, diverse and highly qualified candidate pool for this leadership role,” the Richmond Fed said in a statement on its website.
The Fed is under pressure to increase diversity among its leaders after criticism that it is dominated by white men. Janet Yellen, the first woman to chair the central bank, has said she’d like to see more diversity, though the Richmond Fed’s own board of directors will make the ultimate selection.
Jordan Haedtler, campaign manager for the Fed Up coalition, which has called for a more diverse leadership that includes more minorities and women, said the group will push for “a publicly inclusive and transparent process with the consideration of diverse candidates who will consider labor market conditions for all workers in weighing their decisions.”
Haedtler said Lacker was “always gracious” and toured low-income communities in Charlotte, North Carolina, with one of their member groups.
Given the Richmond Fed’s tradition of standing firm on price stability, “my guess is that the Richmond Fed will find a hawk,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte. “Part of this reflects the sentiment of businesses, residents and bankers located in this part of the country, who tend to take a more cautious view on what monetary policy can and cannot do,” he said.
Atlanta’s Vacancy
Lacker admitted in speeches that his forecasts for the recovery were at times too optimistic. His warnings about inflation were defused as shocks hit the economy. When the Fed decided to go forward with a second round of quantitative easing in November 2010, Lacker raised concerns that it could make it hard to restrain inflation.
“This poses unacceptable risks to price stability and to our credibility,” he said, according to the meeting transcript. “I fear today’s decision and the expectations it encourages will come back to haunt us.”
The Fed’s preferred inflation measure, the personal consumption expenditures price index, did rise above its 2 percent target in 2011 and for part of 2012. It then fell below 2 percent in May that year and has never risen above that level since, partly due to a tumble in oil prices that began in 2014.
By Craig Torres
Source
5 days ago
5 days ago