Liberals turn to Fed in populist push
Left-leaning groups and lawmakers are taking their populist economic fight to the Federal Reserve, as they seek to...
Left-leaning groups and lawmakers are taking their populist economic fight to the Federal Reserve, as they seek to exert new influence over key monetary decisions and a pair of vacancies at the central bank.
The Fed has faced heavy criticism from the right for years, but the other side of the aisle is now beginning to publicly push the institution for preferred policies. With Congress and the White House seemingly set to butt heads for the next two years, left-leaning community and labor groups are turning to the Fed in an attempt to get an economic policy boost for middle- and working-class Americans.
“In the face of the fiscal side not being really a realistic option to promote an economic recovery, the most important economic policymaker in the United States is the Federal Reserve,” said Shawn Sebastian, policy advocate for the Center for Popular Democracy.
And after successfully driving President Obama to nominate Janet Yellen to lead the Fed, some Senate Democrats are again pressing the administration about openings at the central bank. Sens. Elizabeth Warren (D-Mass.) and Joe Manchin (D-W.Va.) are vocally calling on Obama to nominate tough-nosed Wall Street watchdogs to fill out two board spots that often are filled by academics or economists.
The resurgence of left-leaning interest in the Fed’s operations further complicates the bank’s efforts to remain above the political fray. The Fed has weathered years of criticism from the right, which argues its unprecedented foray into monetary stimulus after the recession was a recipe for disaster.But now, with the Fed preparing to finally dial back years’ worth of quantitative easing, it’s the other side that is airing concerns. This time, the worry is that the Fed could tighten policy too quickly, even as millions of Americans still are looking for work or grappling with stagnant paychecks.
“I have been concerned for some time that when the Federal Reserve began to tighten policy that they would be subject to considerable pressure from people who don’t want them to do that,” said Donald Kohn, a former Fed vice chairman now with the Brookings Institution.
A host of left-leaning groups, including the AFL-CIO and the Economic Policy Institute, have joined forces to take a populist message directly to the Fed. The groups have protested a central bank powwow in Jackson Hole, Wyo., and have held public protests outside the institution’s headquarters in Washington.
The leftward push on the Fed follows those groups notching a major victory at the central bank in 2013. With Obama reportedly favoring economic adviser Lawrence Summers to replace the outgoing Ben Bernanke as head of the Fed, Democrats on and off Capitol Hill embarked on a concerted campaign to get Yellen nominated for the top job instead.
Democratic lawmakers took the rare step of publicly advocating for Yellen, then the Fed’s vice chairwoman, before a nomination was made, effectively announcing opposition to Summers in the process. Though Obama defended Summers in public, he ultimately deferred to that pressure and nominated Yellen for the job.
Now, Warren and Manchin are hoping to exert more influence, calling on Obama to fill two openings at the seven-member board with tough supervisors who “have a demonstrated commitment to not backing down when they find problems.”
Fed governors are given a 14-year term, so if those two find success on that front, the end result could be a considerable shift in how the central bank operates as a financial regulator. And any new voices would likely receive an open hearing from Yellen, whose background is as an economist, not a regulator.
“My impression is that Chair Yellen is running the system by consensus in a considerable way, she consults widely,” said Kohn.
Since taking the job, Yellen has made a concerted effort to place the Fed’s deliberations within the context of the working class. One of her first acts as the Fed’s new leader was to address at a Chicago event how the central bank hoped to boost jobs, and she has agreed to meet with left-leaning protestors to hear their concerns.
But Yellen’s openness to those new voices is leaving some unsettled.
“There’s a trend here that’s pretty clear and pretty concerning,” said Steven Lonegan, director of monetary policy at American Principles in Action, which advocates for tighter Fed policy, including a return to the gold standard.
“You can’t start manipulating the value of our money because you have a specific political agenda,” he added.
But these new advocates argue the Fed has always been subject to politics. Sebastian argued that Fed officials and those that track Fed policy skew heavily from corporate and banking interests, leaving a “Main Street” voice out of the picture.
“Every person carries political baggage,” he said. “All we’re trying to do is have that conversation reflect reality.”
But even the people behind the new leftward push on the Fed acknowledge advocacy of the publicly mysterious institution is somewhat novel. Conservative criticism of the Fed has been around for years, first helmed by former Rep. Ron Paul (R-Texas), but a more liberal effort for influence has not been seen in decades.
“This is a new space for us,” said Sebastian. “We don’t know what the effect of this type of engagement will be.”
Source: The Hill
Here's Why The Movement For Black Lives' Demands Came At The Perfect Time
Here's Why The Movement For Black Lives' Demands Came At The Perfect Time
Last week, the DNC took over Philadelphia, television sets, and social media platforms around the country. Viewers...
Last week, the DNC took over Philadelphia, television sets, and social media platforms around the country. Viewers tweeted quotes and zingers from prominent elected officials, and celebrity actors alike. For the most part, it was a vibrant convention with many celebratory acknowledgements for Hillary Clinton becoming the first woman major-party presidential nominee. But here's why The Movement For Black Lives demands, released on Monday, actually came at the perfect time. There's still a long road ahead for full equality, and every political party should continue to be challenged – even during the "glass ceiling"-shattering historic moments.
Many supporters of Vermont Sen. Bernie Sanders and Green Party candidate Jill Stein (or those simply anti-establishment) exercised their right to protest at the DNC, but even still, the underlying message last week was clear: Unite to stop Donald Trump. The Republican presidential nominee poses a real threat to already-marginalized communities in America should he be elected President – but he's not the only threat. For black lives particularly, police violence, and economic freedom are some of the lingering systemic issues that have long oppressed black communities. And it's a deep-rooted problem that continues to need attention – especially as candidates in the general election are eagerly vying for the trust of American citizens from now until November.
The Movement For Black Lives is a collective of more than 50 organizations that represent Black people across the United States, including Black Lives Matter. The collective released a comprehensive platform of demands that aim to combat the systemic marginalization of black communities:
“Black humanity and dignity requires Black political will and power. Despite constant exploitation and perpetual oppression, Black people have bravely and brilliantly been the driving force pushing the U.S. towards the ideals it articulates but has never achieved. In recent years we have taken to the streets, launched massive campaigns, and impacted elections, but our elected leaders have failed to address the legitimate demands of our Movement. We can no longer wait.”
The process to create the demands took one year – beginning last year when 2,000 people gathered in Cleveland to discuss ideas for the movement, the site read. In a breakdown of one the platform demands for political power, the collective called for an end to super PACs, and "unchecked corporate donations" that influence political elections, along with ensuring voting rights, and an increase in funding for HBCUs.
What's especially interesting about the platform, is that some of the demands, like, reparations, are often viewed unfavorably and do not make the conversation in major-party platform settings like the DNC. But some polls suggest that significant percentages of black Americans support reparations – therefore making it an important conversation, at the very least, for all political candidates.
In an interview with The New York Times, Marbre Stahly-Butts, a leader in the Movement for Black Lives Policy Table, explained why the demands "go beyond individual candidates."
"On both sides of aisle, the candidates have really failed to address the demands and the concerns of our people," she said.
And as police violence continues to disproportionately affect Black lives, among other systemic issues, it continues to be important to push for justice, during and after the general election.
By KIMBERLEY RICHARDS
Source
Jeb and Hillary’s opportunity on workweek fairness
Jeb Bush and Hillary Clinton have been trading barbs about whether Americans are working hard enough, but behind the...
Jeb Bush and Hillary Clinton have been trading barbs about whether Americans are working hard enough, but behind the give-and-take is a real emerging issue that has a dire impact on our country’s 75 million hourly workers and their families: the 40 hour workweek is no longer something we can count on. The candidates have a chance to move beyond the gamesmanship and support concrete solutions at the national and local level to show their commitment to the stability of working families.
To summarize the exchange, Bush said that “people need to work longer hours.” Clinton quickly responded on Twitter, “Anyone who believes Americans aren't working hard enough hasn't met enough American workers.” Bush retorted, referencing the number of people who are involuntarily working part time and seeking full time work that, “Anyone who discounts 6.5 million people stuck in part-time work and seeking full-time jobs hasn’t listened to working Americans.”
Taken at their word, neither of them is wrong; both sides of the argument resonate in the lived experiences of the millions of people working by the hour. For hourly workers trying to work enough hours to earn enough to get by, it can mean taking the hours they can get –sometimes working short four-hour shifts, putting their lives on hold for a last-minute on-call shift, or working the late night shifts followed by too little sleep because of an early morning shift the next day – also known as a “clopen.”
This is reality for millions of Americans all across the country. Strained, exhausted, and without seeing their families some days. Their rent and bills are predictable, but the work hours they need to pay them are not.
Many of these workers both want more hours, like Bush says, and are working hard, like Clinton says. The American workforce is rapidly changing, and millions of people are caught in a cycle of too few hours, too little control of when their hours occur, and not getting paid for the time they make available to their employers. For part-timed hourly workers, there’s often no way to get ahead.
The issue missing from Jeb and Hillary’s exchange is how underemployment and unpredictability go hand in hand. The one thing these workers can count on is that their schedules will change each week, sometimes with just minutes’ notice. This last minute notice is typical of part-time hourly workers across the economy, especially in fast food and retail, by employers like Target, Starbucks, the Gap, Victoria’s Secret, and others. It’s impossible to pick up more hours at another job if you don’t know day to day what your schedule will be.
If Jeb Bush and Hillary Clinton are looking for real solutions to these issues, a new movement being led by working moms has some concrete policy solutions to offer. Last week, Congress introduced the Schedules That Work Act, a path-breaking bill addressing these underlying problems of part-time work that Bush and Clinton are debating. The bill is a result of workers calling for schedules they can predict, more stable hours they can count on, and the right to have a say into the hours they work without retaliation. The Schedules That Work Act has garnered a wave of support, in both the House and Senate, and comes after a year when legislators in 12 states introduced policies to guarantee a fair workweek, including active municipal campaigns that includes Minneapolis, Albuquerque, and Washington DC.
Clinton launched her campaign and declared, “I believe you should receive your work schedule with enough notice to arrange childcare or take college courses to get ahead” and Bush’s recent statements on involuntary part-time work show that even the GOP can’t ignore the under-employed. But the chaos that under-employment and unpredictable scheduling sows into workers lives is not just fuel for rhetoric, it’s real. And it requires real policy solutions. Hillary and Jeb have the chance to go deeper than their back and forth, address the common underlying problems they’ve both identified, and stand in favor of federal and local legislation that builds a fair workweek.
Gleason is the director of the Fair Workweek Initiative at the Center for Popular Democracy
Source: The Hill
Mary Jo White should recuse herself from the selection of the next chair of the PCAOB: Activists
Mary Jo White should recuse herself from the selection of the next chair of the PCAOB: Activists
Securities and Exchange Commission (SEC) Chair Mary Jo White should recuse herself from the selection of the next chair...
Securities and Exchange Commission (SEC) Chair Mary Jo White should recuse herself from the selection of the next chair of the Public Company Accounting Oversight Board (PCAOB) due to an apparent conflict of interest created by the decision’s impact on White’s household income, a national coalition of 14 organizations said in a letter today.
Mary Jo White’s husband John White sits on the PCAOB’s Standing Advisory Group (SAG), selected by the members of the PCAOB, who are in turn chosen by Mary Jo White and the SEC.
John White’s role on the SAG has been marketed extensively by his law firm Cravath Swaine & Moore, LLP, where he practices securities law. His employment as a partner at Cravath forms the large majority of Mary Jo White’s family income, noted the groups.
“SEC Chair White should insure that her household income, which largely derives from her husband’s work as a Cravath attorney, doesn’t compromise her critical decisions affecting Cravath-represented clients,” said Bart Naylor, financial policy advocate for Public Citizen.
Scrutiny of Mary Jo White’s conflict of interest in PCAOB staffing was elevated in early September, whenBloomberg reported that White was considering potential candidates to replace PCAOB Chair James Doty. Doty – whose tough proposed accounting reforms have drawn industry ire and a fierce lobbying effort – has signaled he would like to return for another term.
After ensuing media coverage noted Cravath’s marketing of John White’s role on the SAG, Cravath quickly removed references to White’s position on the SAG from its website by the following day, as reported byMarketWatch.
“If there were any doubts about the improper link between Mary Jo White’s official actions and John White’s financial gain, Cravath’s frantic attempt to scrub its website put them to rest,” said Kurt Walters, campaign manager at Rootstrikers. “Mary Jo White should immediately announce her recusal from all further personnel decisions at PCAOB while her family income is so clearly at stake.”
The groups also called for the public release of any ethics guidance Chair White has relied on to date to continue her involvement in personnel matters at the PCAOB. They highlighted her previous written commitment to obtain ethics waivers before taking any action with a “direct and predictable effect” on her husband’s employment at Cravath.
“Chair White publicly swore to rely on waivers when her actions might have a ‘direct and predictable effect’ on John White’s role at Cravath, and her role helping select the PCAOB creates an appearance of just such an effect,” said Jeff Hauser, director of the Revolving Door Project at the Center for Effective Government.“The public is entitled to review the ethics guidance by which she reached the conclusion that she not only could go forward, but could do so without a waiver. Moreover, given the multiplicity of conflicts the Chair brought with her to the SEC and the absence of any 18 U.S.C. § 208(b)(1) or (b)(3) waivers, complete transparency in ethical guidance (with appropriate redactions) is necessary to restore public confidence in the SEC.”
The coalition letter was signed by Alliance for a Just Society, American Family Voices, Campaign for America’s Future, Center for Effective Government, Center for Popular Democracy, Community Organizations in Action, Communications Workers of America, Democracy for America, Main Street Alliance, MoveOn.org Civic Action, The Other 98%, Public Citizen, RootsAction, and Rootstrikers, and is available at https://s3.amazonaws.com/new.demandprogress.org/letters/Coalition_letter_regarding_Chair_White_and_PCAOB.pdf .
Coalition_letter_regarding_Chair_White_and_PCAOB (1)
Source: ValueWalk
Three profs arrested at D.C. protest
Three Yale professors were arrested in Washington, D.C., on Wednesday for engaging in civil disobedience in support of...
Three Yale professors were arrested in Washington, D.C., on Wednesday for engaging in civil disobedience in support of immigrant rights.
On Wednesday, over 10,000 people rallied at Upper Senate Park in Washington in support of the Development, Relief and Education for Alien Minors Act, or DREAM Act. Three University professors — Alicia Camacho, Zareena Grewal and Daniel HoShang — were among more than 180 protesters who were arrested after the two-hour protest for “crowding, obstructing or incommoding” by sitting on the steps leading to the U.S. Capitol.
Read the full article here.
De Blasio and Mayors of Chicago, Los Angeles Launch Initiative to Help Immigrants Become U.S. Citizens
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new...
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new initiative to push for eligible immigrants to become U.S. citizens in the nation's three largest cities.
"Cities for Citizenship" aims to increase naturalization programs and other efforts to help immigrants in New York City, Chicago and Los Angeles.
"This win-win effort will help us create more inclusive cities that lift up everyone," de Blasio said in a statement announcing the initiative. "From increased economic activity to larger voting and tax bases, the advantages of citizenship will not only expand opportunity to our immigrant families, but to all New Yorkers and residents nationwide."
The de Blasio administration said increasing immigrant access to citizenship will help fight poverty and estimated that naturalizing 684,000 legal permanent residents will add up to $4.1 billion to the city's economy over a decade.
In a report released Wednesday, the Center for Popular Democracy estimated that there are about 750,000 legal permanent residents eligible for naturalization.
Citigroup, a corporate partner of the initiative, will contribute $1.15 million for the new initiative.
New York City will use funds for NYCitizenship, a coordinated effort to connect low- and moderate-income New Yorkers to free legal assistance during the naturalization process. NYCitizenship works with city agencies to connect those in the city eligible to become U.S. citizens with assistance, such as legal advice, help on applications and financial counseling.
The NYCitizenship program has already helped more than 1,800 New Yorkers complete naturalization applications since 2012, according to the Center for Popular Democracy report.
In addition to the initiative, the city's Office of Immigrant Affairs will also commission a study on the economic impact of citizenship programs nationwide.
Source
Fed Should “Freeze Interest Rates, Involve Citizens” Says Neighborhoods Organizing For Change
The Uptake - March 10, 2015, by Bill Sorem - Not everybody is benefiting equally from the economic recovery. A new...
The Uptake - March 10, 2015, by Bill Sorem - Not everybody is benefiting equally from the economic recovery. A new report shows in Minnesota blacks are suffering disproportionally to whites when it comes to employment.
Anthony Newby, Executive Director of Neighborhoods Organizing for Change (NOC), delivered a report of about the current economic state of people of color in Minnesota and specifically the current and possible role of the Federal Reserve Bank. The new report from the Center for Popular Democracy says since 2000, wages in Minnesota have declined by 4.5%, current unemployment rate for blacks is 10.9% vs a white rate of 2.8%.
This is the link to the full report “Wall Street, Main Street, and Martin Luther King Jr. Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full-Employment Mandate”
Newby argues that the Fed in addition to controlling interest rates, can control the rate of unemployment. He and Rev. Paul Slack, ISIAH President, ask that interest rates be kept at the current levels and that the Fed work to reduce unemployment.
Why there is a Federal Reserve
The nation’s central bank, the Federal Reserve, was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics. There had been strong resistance to a central bank since the founding of the nation. The Fed was given the power to print money, establish bank interest rates and a number of sweeping powers. It is an independent entity within government, ownership of each of the 12 banks is claimed be the member banks, but the actual fiscal ownership is obscure. The ability to print money and loan it to the government is at the heart of its power and for many, a controversial power. President Kennedy challenged the authority of the Fed with Executive Order 11110, June 4, 1963 and he attempted to eliminate our current paper money, the Federal Reserve Note replacing it with US Notes. He did not succeed.
Newby further requested more transparency in the actions of the Fed and asked for more ordinary citizen participation. The current president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, has indicated a willingness to keep interest rates low and to move towards more citizen participation in the actions of the Fed. However, he retires in a year. Newby would like citizens to have input on his successor.
Rev. Slack asked for justice and compassion in the Fed policies, in part to undo past unfair actions.
Source
The ‘Resistance,’ Raising Big Money, Upends Liberal Politics
The ‘Resistance,’ Raising Big Money, Upends Liberal Politics
WASHINGTON — It started as a scrappy grass-roots protest movement against President Trump, but now the so-called...
WASHINGTON — It started as a scrappy grass-roots protest movement against President Trump, but now the so-called resistance is attracting six- and seven-figure checks from major liberal donors, posing an insurgent challenge to some of the left’s most venerable institutions — and the Democratic Party itself.
Read the full article here.
S&P 500, Nasdaq end at records after Fed speech
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the...
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech.
Read the full article here.
Fed Chairwoman: African-Americans Have Not Recovered from Economic Downturn
Fed Chairwoman: African-Americans Have Not Recovered from Economic Downturn
Federal Reserve Chairwoman Janet Yellen delivered her semiannual testimony on the U.S. economy and monetary policy to...
Federal Reserve Chairwoman Janet Yellen delivered her semiannual testimony on the U.S. economy and monetary policy to the Senate Banking Committee Tuesday. In her prepared remarks, Yellen acknowledged that the country’s economic recovery has not fully extended to the African-American population.
“Jobless rates have declined for all major demographic groups, including for African-Americans and Hispanics,” Yellen said. “Despite these declines, however, it is troubling that unemployment rates for these minority groups remain higher than for the nation overall, and that the annual income of the median African-American household is still well below the median income of other U.S. households.”
An accompanying report revealed that the median Black household income in 2014 was $40,000, which means African-American households are earning just 88 percent of their pre-recession incomes.
The 2014 median white household income was $67,000. According to the report, white, Asian and Hispanic households have regained 94 percent of their pre-recession earnings.
Furthermore, unemployment rates for African-Americans continue to be lower than they were prior to the recession, compared to white unemployment rates, which have nearly returned to original levels.
The Fed has faced growing criticism from activists and lawmakers who accuse the banking system of ignoring the economic disparity faced by minorities in the U.S. Supporters say Fed-controlled interest rates have a direct impact on the economic success of Black Americans.
Tuesday’s comments were a stark contrast to the position taken by Yellen last July, when she argued there was nothing the Reserve could do “about any particular group.”
The statements fired up Connie Razza, director of strategic research at the Center for Popular Democracy, who issued a statement in response.
“With African-Americans still mired in our own Great Recession, we should be hearing a positive vision from the Fed on how to foster full employment,” Razza said on behalf of the Fed Up Coalition. “While the economy is complex and the Federal Reserve’s tools are limited, there is plenty the Fed can do to improve the labor market for Black workers and to reduce racial inequality in the job market.”
The Fed Up Coalition is a consortium of labor unions, community-based organizations and policy think tanks fronted by the Center for Popular Democracy and Action for the Common Good. The group maintains that the economic upswing is a myth for most demographics and stresses that keeping interest rates low will give the economy a chance to truly recover for everyone. Modest rates will raise wages, bringing the country closer to full employment and eliminating the need for discriminatory hiring practices, according to the campaign.
During Yellen’s February address to the House Financial Services Committee, several Democrats pressed the issue of Black unemployment rates.
“Nobody is suffering from unemployment like the African-American community,” Georgia Rep. David Scott said at the hearing, per CNN. “We have got to get the Fed to get off the dime and put the issue of African-American unemployment on the front burner. That is the core of all of the domestic issues that we’re facing.”
The unemployment rate for African-Americans in May was 8.2 percent, which was double the rate of whites at 4.1, according to the Bureau of Labor Statistics.
By Shaundra Selvaggi
Source
2 days ago
2 days ago