Fed Up is clearly pushing to keep rates low for longer, which they say will cause the job market to tighten further, pulling minorities who sit on the sidelines into the labor market.
Policy makers have pushed back against that argument. John Williams, president of the San Francisco Fed, told reporters in Reno, Nevada, on Sept. 6. that running the economy too hot could culminate in a recession. “One thing we do know is minorities are harmed a lot in recessions. Their unemployment rates skyrocket.”
Diversity Push
While the push for regional Fed reform is still in its early days, Fed Up’s call for diversity has been echoed by Clinton, and continues to resonate on Capitol Hill.
Kansas City Fed chief Esther George and Richmond’s Jeffrey Lacker appeared Sept. 7 before a House Financial Services’ subcommittee hearing to explain the structure of the regional Fed system and discuss its track record on diversity. Lacker said it “shows a combination of substantial progress and areas where more can be done.”
So how does an organization go from a grant proposal to a 120-member force at Jackson Hole -- and become a leading voice on a hot-button issue -- in the span of two and a half years?
Fed Up campaign director Barkan reached out to groups he already worked with through the Center for Popular Democracy to find community members from Philadelphia to Minneapolis who might be interested, and he’s been using a presentation called “Why Should I Care About the Federal Reserve?” to explain monetary policy. Part of the pitch is an us-versus-them rallying cry emphasizing the influence of corporate and financial interests over the U.S. central bank.
“The REAL reason people try to scare people about inflation is because lower interest rates means higher wages,” the presentation reads. “Better wages for us comes out of their corporate profits. That’s part of the reason why, when we demand jobs, they cry inflation.”
This article was provided by Bloomberg News.