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Pressley:
The decisions you make do impact everyday working people.
Your decisions impact how many jobs we have, who has what jobs, how much they’re being paid, and who is most harmed when unemployment is high.
The decisions you make do impact everyday working people.
Your decisions impact how many jobs we have, who has what jobs, how much they’re being paid, and who is most harmed when unemployment is high.
Pressley:
However, the Fed’s approach has never successfully ensured enough well-paying jobs are available to every1 who wants to work, even for a small time.
In a 1944 address, FDR called for a 2nd Bill of Rights which included the Right to a Useful & Financially Rewarding Job
However, the Fed’s approach has never successfully ensured enough well-paying jobs are available to every1 who wants to work, even for a small time.
In a 1944 address, FDR called for a 2nd Bill of Rights which included the Right to a Useful & Financially Rewarding Job
Pressley:
Justice Thurgood Marshall argued that the Right to a Job is secured by the 14th Amendment.
And Dr. Martin Luther King called on the government to guarantee a job to all people who want to work, and are able to work.
Justice Thurgood Marshall argued that the Right to a Job is secured by the 14th Amendment.
And Dr. Martin Luther King called on the government to guarantee a job to all people who want to work, and are able to work.
Pressley:
Dr. King’s legacy is often reduced to just one speech, and the March on Washington often mischaracterized. The March on Washington was actually the March on Washington for Jobs and Freedom. It was a March for Economic Justice.
Dr. King’s legacy is often reduced to just one speech, and the March on Washington often mischaracterized. The March on Washington was actually the March on Washington for Jobs and Freedom. It was a March for Economic Justice.
Pressley:
And I take special claim to the fact that Dr. King and Coretta actually met in Boston. I represent Boston, and I don’t think she gets enough oxygen for the role that she played in the movement.
And I take special claim to the fact that Dr. King and Coretta actually met in Boston. I represent Boston, and I don’t think she gets enough oxygen for the role that she played in the movement.
Pressley:
& so, after Dr. King’s assassination, Coretta Scott King picked up the mantle, pushing the Fed to adopt a full employment mandate, & was actually standing behind President Carter as he signed the Humphrey-Hawkins Act into law. And that’s the reason you are here today.
& so, after Dr. King’s assassination, Coretta Scott King picked up the mantle, pushing the Fed to adopt a full employment mandate, & was actually standing behind President Carter as he signed the Humphrey-Hawkins Act into law. And that’s the reason you are here today.
Pressley:
So in the interests of time, if you would indulge me and answer as succinctly as possible, yes or no:
So in the interests of time, if you would indulge me and answer as succinctly as possible, yes or no:
Pressley:
Given persistent concerns about inflation, do you believe the Federal Reserve can achieve full employment? And by full employment, I mean anyone who wants to work and can work will have a job available to them?
Given persistent concerns about inflation, do you believe the Federal Reserve can achieve full employment? And by full employment, I mean anyone who wants to work and can work will have a job available to them?
Powell:
First, thank you for that history, I didn’t know that.
So that’s our goal, that’s what we’re working to do at all times.
And we’re never going to say we’ve accomplished that goal, but we’ve certainly made some progress.
First, thank you for that history, I didn’t know that.
So that’s our goal, that’s what we’re working to do at all times.
And we’re never going to say we’ve accomplished that goal, but we’ve certainly made some progress.
Pressley:
I’ll take that as a yes.
Could a Federal Jobs Guarantee succeed where the Federal Reserve has not, yes or no?
I’ll take that as a yes.
Could a Federal Jobs Guarantee succeed where the Federal Reserve has not, yes or no?
Powell:
That’s a hard one to answer. You mean by, I don’t know enough---
That’s a hard one to answer. You mean by, I don’t know enough---
Pressley:
Guaranteeing a job. That’s the history that I was providing.
That anyone who wants to work, and is able to work.
Guaranteeing a job. That’s the history that I was providing.
That anyone who wants to work, and is able to work.
Powell:
I’d have to defer to the fiscal authorities on that.
I’d have to defer to the fiscal authorities on that.
[Me]:
This is an important recognition by Powell that the question of whether or not to implement a Job Guarantee is not one that can be decided by the Fed.
Rather, it is a decision for Congress and President.
The Fed's job is to support any decision they make.
This is an important recognition by Powell that the question of whether or not to implement a Job Guarantee is not one that can be decided by the Fed.
Rather, it is a decision for Congress and President.
The Fed's job is to support any decision they make.
[Me]:
This is a welcome departure from the historical norm of Fed officials using their influence to try to undermine efforts at implementing Job Guarantee legislation.
Other Fed officials must follow Powell's lead & refrain from putting their finger on the scale in JG debates.
This is a welcome departure from the historical norm of Fed officials using their influence to try to undermine efforts at implementing Job Guarantee legislation.
Other Fed officials must follow Powell's lead & refrain from putting their finger on the scale in JG debates.
[Me]:
Critically, Powell's reply also makes clear that the fiscal authorities are not powerless to address the problem of unemployment directly, notwithstanding the Fed's existing mandate.
If Congress/President enact a JG, that will be the new operating framework for the Fed.
Critically, Powell's reply also makes clear that the fiscal authorities are not powerless to address the problem of unemployment directly, notwithstanding the Fed's existing mandate.
If Congress/President enact a JG, that will be the new operating framework for the Fed.
[Me]:
That Powell couldn't even acknowledge the obvious fact that a Job Guarantee would ensure people had access to jobs in a way indirect demand-management tools like interest rate adjustments historically have failed to do is also telling.
That Powell couldn't even acknowledge the obvious fact that a Job Guarantee would ensure people had access to jobs in a way indirect demand-management tools like interest rate adjustments historically have failed to do is also telling.
Fyi:
@sam_a_bell @DavidBeckworth @dandolfa @Claudia_Sahm @shawnsebastian @AdyBarkan @StephanieKelton @AbreuAndTheCity @andresintheory @MalaikaJabali @evanlweber @VarshPrakash @sunrisemvmt
@sam_a_bell @DavidBeckworth @dandolfa @Claudia_Sahm @shawnsebastian @AdyBarkan @StephanieKelton @AbreuAndTheCity @andresintheory @MalaikaJabali @evanlweber @VarshPrakash @sunrisemvmt
An important related thread from the great @stf18: https://twitter.com/stf18/status/1227367592236605441?s=19
