Several progressive groups along with the former labor secretary under Bill Clinton Robert Reich launched this week a nationwide campaign against the incoming federal funds rate hike. The groups argue that the Fed should not make the move until wages display a significant growth.
The campaign dubbed “Fed Up” aims at making the Federal Reserve a worker-friendly institution that makes its decisions by also taking into account the impact of those decisions on the nation’s workforce.
The groups launched even an online petition called “Tell the Fed: Don’t Raise Interest Rates!” urging Americans to join in the fight against an interest rate hike which would mean fewer jobs and lower wages.
Among the backers of the petition, there are the Working Families Party, Action for the Common Good, Demand Progress/Watchdog.net, and the Economic Policy Institute. Robert Reich is one of the economists that funded the latest group.
Activists announced that they would deliver the petition and the signatures to the Fed representatives that take part in the Kansas City Federal Reserve Bank’s annual symposium between August 27 and 29.
The petition will be submitted to the symposium by a group of low-income workers and representatives of Hispanic and African-American communities, who will discuss with federal officials how monetary policies affect them and their families. The campaign had a similar debut last year, as well.
Mr. Reich is heavily backing the campaign. He already posted a video on the reasons why such the campaign should be successful and promoted the petition through his Facebook page. Although he first posted it on the social networking site Friday, in only three days the petition amassed 142,000 views and 3,600 shares. The illustrations presented in the video are the work of Mr. Reich.
The Campaign tries to make the Fed change their mind on raising the funds rate by September. On Monday, Atlanta Fed President announced that the Fed is ready to make the move after a July report showing that the labor market is experiencing a significant recovery.
But the progressive groups backing Fed Up think that a hike is premature. Mr. Reich explains in his video what role the Fed plays in economy and how it tweaks interest rates to stimulate economic growth. He also argues that a low interest rate helps business grow since it boosts consumer spending and new jobs are created in the process. Plus, if employers need more employees they start to hike wages, too. So, it is a win-win situation for the U.S. workers.
Image Source: What Recovery
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