MORNING MESSAGE
The “People’s Fed” and the Oracles of Jackson Hole
The
chair, Janet Yellen, gave a lengthy speech last week that covered a number of
topics, but this was the phrase heard around the world: “I believe the case for
an increase in the federal funds rate has strengthened in recent months.” ...
Interest rate hikes are a tool for cooling down the economy when it’s
“overheating.” That hardly seems to be the case right now ... a “People’s Fed”
proposal from Fed Up [would] avoid taking steps that could harm the economy for
working people, like a premature rate hike, and appoint leadership that more
closely resembles our diverse population.
ISDS EXPOSé BLOW TO TPP
Buzzfeed
begins four-part series on investor-state dispute settlement courts, a key
feature of TPP: “The BuzzFeed News investigation … will show how the mere
threat of an ISDS case can intimidate a nation into gutting its own laws, how
some financial firms have transformed what was intended to be a system of
justice into an engine of profit, and how America is surprisingly vulnerable to
suits from foreign companies … Companies and executives accused or even
convicted of crimes have escaped punishment by turning to this special
forum.”
FED CONFERENCE SUGGESTS NO CHANGE IN COURSE
Fed
conference explores how to blunt next recession. W. Post: “Its influential
interest rate is barely above zero. That means the Fed could enter the next
economic slowdown with its foot already firmly on the gas … When the global
financial crisis struck in 2008, the Fed had to get creative … Fed Chair Janet
L. Yellen said the central bank will probably redeploy those measures when
recession strikes again, an acknowledgement that the unconventional policies of
the crisis have now become the norm.”
Fed
appears to reject “radical” proposals. Bloomberg: “Federal Reserve Chair
Janet Yellen and her peers … re-affirmed their belief in power of monetary
policy to stop economies from slipping into deflation. They were less keen on
academic proposals that included the abolition of cash, raising their inflation
targets, or keeping permanently large balance sheets.”
TRUMP PLANS TWO MAJOR SPEECHES
Trump
sets oft-canceled immigration speech for Wednesday. The Hill: “On Sunday
evening, Donald Trump promised in a tweet that he’ll deliver a major speech on
immigration Wednesday — saying he’s still looking for a larger venue … Trump had
planned to address the issue last week in Colorado, but postponed that event.
The Arizona event scheduled for Wednesday was originally billed as an
immigration speech, but the Trump camp then said it would focus on party unity
instead. It was cancelled Friday, before Trump clarified that it is moving to a
larger venue.”
Trump
still pushing “hardline” reports Bloomberg: “…the totality of Trump’s recent
remarks reveals only one meaningful change in his immigration platform: an
apparent retreat from mass deportation … Trump remains opposed to legal status
for undocumented immigrants, and on Saturday he reaffirmed his support for many
of the restrictive proposals laid out in his August 2015 policy paper.”
Trump
to stump in black church Saturday. Bloomberg: “Trump will visit the Great
Faith Ministries on Saturday in Detroit, a predominantly black church located in
the heart of the city … Trump has been direct in his approach on the campaign
trail, though he’s made his appeals in front of predominantly white crowds in
suburban areas.
Coal
country skeptical of Clinton’s aid plan. NYT: “As in the case of tobacco,
the idea is not to save the old economy, but to create a new one by retraining
miners, investing in infrastructure and technology, and luring new industries …
lawmakers in Virginia created the Tobacco Region Revitalization Commission,
which has spent nearly $1 billion … But southwest Virginia is still suffering …
Mrs. Clinton’s advisers say her plan to save coal country is informed by the
lessons of the tobacco programs.”
BREAKFAST SIDES
Dems
hope for House gains. NYT: “…Democrats in Congress are laying the groundwork
to expand the list of House Republicans they will target for defeat … Democrats
are particularly enticed by Mr. Trump’s dwindling support in affluent suburban
areas — including those near Kansas City, Kan.; San Diego; Orlando, Fla.; and
Minneapolis … Few Democrats say they believe their party is positioned, at this
point, to take control of the House …[But l]ast month, the House Democratic
campaign raised $12 million while House Republicans raised just $4.6
million…”
Pool
of undecided voters leans left. Politico: “They’re more likely to come from
a demographic — younger voters — that’s more inclined to back her, and in some
surveys have a slightly less negative view of her than of Trump. And yet they’ve
resisted supporting her all year, and are actively seeking other options, such
as [Gary] Johnson or [Jill] Stein … part of the reticence among young voters
[is] their fervent support for Sen. Bernie Sanders … More than a quarter of
voters under age 35, 27 percent, said they would vote for Johnson and Stein,
combined.”
Congress
faces bill to keep government open. The Hill: “Funding for the federal
government dries up at the end of September, forcing Congress to move a stopgap
spending bill just weeks before the Nov. 8 presidential election. Members of the
conservative House Freedom Caucus are pushing to extend government funding into
early 2017, wary of a massive bipartisan spending deal in the lame duck. But GOP
leaders and House Democrats are already laying the groundwork for a short-term
continuing resolution or CR that will set up a vote on a catch-all spending bill
right before the holidays.”
Progressive
Breakfast is a daily morning email highlighting news stories of interest to
activists. Progressive Breakfast is a project of the Campaign for America's
Future. more
»