FED-UP!

[Chris Bohner <cbohner@xxxxxxxxxxxxxxxx>]

FED-UP!

The Federal Reserve's Open Market Committee is meeting on November 15 to
consider raising interest rates once again.  A diverse coalition of
organizations -- trade unions, community-based groups, family farms,
churches, and progressive policy groups -- are planning a demonstration at
the meeting, and we are seeking support from progressive economists and
organizations.  We've drafted a letter (below) to present to the Fed and
it would add additional "credibility" to the demonstration if we had the
signatures of additional professional and academic economists.

Apart from monetary policy, the demonstration will also focus on the Fed's
refusal to enforce fair lending laws, especially the 1977 Community
Reinvestment Act (CRA).  Participating organizations in the event so far
include the AFL-CIO, National Community Reinvestment Coalition (the org. I
work for), Americans for Democratic Action, Campaign for New Priorities,
the Philadelphia Unemployment Project, the Mon Valley Unemployment
Committee, and the Southern Finance Project.

If there is interest, I'll provide a report on the demonstration to PKT.
The sign-on letter is below.  If you wish to sign-on I must hear by
11:00 est monday morning:

A CITIZENS STATEMENT ABOUT THE FEDERAL RESERVE SYSTEM

The Federal Reserve Board and its Open Market Committee (FOMC) is our
government's most powerful economic policymaker.  In exercising that
power, it should also meet standards of openness and accountability
essential to a democratic society.  It must also live up to its legal
obligations to promote full employment, affordable credit, and fair
lending.

We are gravely concerned at the prospect of the Federal Open
Market Committee raising interest rates at its upcoming November 15
meeting.  Claiming that it needed to combat inflationary pressures in
order to maintain low, stable long term interest rates, the Federal
Reserve has already raised short term rates on five occasions this year.

Regrettably, the Fed's actions have actually pushed up long term rates and
destabilized financial markets, endangering the economic prospects of
millions of citizens.  The cost of mortgages and other loans has risen.
Meanwhile, inflation has remained virtually nonexistent.  Wages and weekly
earnings have stagnated in real terms while unemployment and
underemployment persists at unacceptably high levels, especially for young
people and other segments of our society.

Because great inequalities in wealth, income and opportunity damage our
country we are concerned as well about discriminatory lending practices
and the Federal Reserve's inadequate regulatory response.  Families,
communities and enterprises underserved by the nation's credit system
require vigorous, consistent enforcement of fair lending laws in order to
realize the American dream of economic security.  Accordingly, we endorse
the November 15 rally sponsored by the committee and urge the Federal
Reserve to:

* Refrain from raising interest rates at its November meetings and for
the foreseeable future;

* Pursue a long term monetary policy that meets the full employment
objectives of the Federal Reserve Act -- the achievement of "maximum
employment, production and purchasing power" required by the 1946 Full
Employment Act -- and to take as seriously its legal obligation under the
1978 Humphrey-Hawkins Full Employment and Balanced Growth Act as it does
its obligation to pursue price stability;

* Aggressively discharge its supervisory duties, including the enforcement
of fair lending laws, and support regulatory reforms of the Community
Reinvestment Act that promote equal access to credit.

* Open FOMC meetings to the public and publicly release staff studies
incident to FOMC policy decisions.

These steps would indicate a recognition that the nation's central bank
must serve the broad interests of its citizens, not merely the narrow
interests of some segments of the financial industry.  We expect nothing
less from our democratic system of governance.

Signed,

xxxx



If you need more information, or would like to sign-on to the letter, you
may reach me at the e-mail/phone number below (if you are signing on
include your name, title, unversity or organization).

Chris Bohner  (cbohner@xxxxxxxxxxxxxxxx)
Research Analyst
The National Community Reinvestment Coalition
1875 Connecticut Avenue, Suite 1010
Washington DC  20009
Phone: 202-986-7898
Fax: 202-986-7475