March, 22 2023, 04:27pm EDT
Chair of Patriotic Millionaires, Former BlackRock Managing Director, Reacts to Fed Interest Rate Hike by 25 Basis Points
NEW YORK
Earlier this afternoon, the Federal Reserve announced it will move to hike interest rates by a quarter point. The decision will add to the burden of pressure faced by some regional banks, in part by further depressing the value of the bonds that banks invest in.
Morris Pearl, a bank bailout expert, chair of Patriotic Millionaires and former managing director at BlackRock, where his team was hired by the Federal Reserve, Treasury, and FDIC to structure and assess the cost of the Citibank bailout in 2008, issued the following statement in response:
"The Fed's decision to keep pushing forward with rate hikes no matter the circumstances is a dangerous mistake. High interest rates are a blunt instrument that are not well suited to the economic realities the country now faces—and will inevitably end up doing more harm than good.
"In our modern economy, high interest rates are simply not an effective way to fight inflation. Rate hikes have disproportionately hurt just a few sectors, like housing, automobiles, and some banks and investors, while leaving many of the nation's largest employers relatively unscathed.
"Rising interest rates do nothing to address a major cause of inflation, corporate price-gouging, and actually make another long-term cause, lack of investment in new housing, worse. Instead, the Fed is betting that lowering employment and cooling wage growth is the best solution to inflation.
"Higher interest rates may be a cure for inflation, but if they end up causing another banking crisis, or pushing the economy into a recession, the cure may be worse than the disease."
The Patriotic Millionaires is a group of high-net worth Americans who share a profound concern about the destabilizing level of inequality in America. Our work centers on the two things that matter most in a capitalist democracy: power and money. Our goal is to ensure that the country's political economy is structured to meet the needs of regular Americans, rather than just millionaires. We focus on three "first" principles: a highly progressive tax system, a livable minimum wage, and equal political representation for all citizens.
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Judges Block Kroger-Albertsons Merger in 'Win for Farmers, Workers, and Consumers'
"We applaud the FTC for securing one of the most significant victories in modern antitrust enforcement," said one advocate.
Dec 10, 2024
Antitrust advocates on Tuesday welcomed a pair of court rulings against the proposed merger of grocery giants Kroger and Albertsons, which was challenged by Federal Trade Commission Chair Lina Khan and multiple state attorneys general.
"The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger's acquisition of Albertsons," said Henry Liu, director of the commission's Bureau of Competition, in a statement. "This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets."
"This victory has a direct, tangible impact on the lives of millions of Americans who shop at Kroger or Albertsons-owned grocery stores for their everyday needs, whether that's a Fry's in Arizona, a Vons in Southern California, or a Jewel-Osco in Illinois," he added. "This is also a victory for thousands of hardworking union employees, protecting their hard-earned paychecks by ensuring Kroger and Albertsons continue to compete for workers through higher wages, better benefits, and improved working conditions."
While Liu was celebrating the preliminary injunction from Oregon-based U.S. District Court Judge Adrienne Nelson, later Tuesday, King County Superior Court Judge Marshall Ferguson released a ruling that blocked the merger in Washington state.
"We're standing up to mega-monopolies to keep prices down," said Washington Attorney General Bob Ferguson. "We went to court to block this illegal merger to protect Washingtonians' struggling with high grocery prices and the workers whose jobs were at stake. This is an important victory for affordability, worker protections, and the rule of law."
Advocacy groups applauding the decisions also pointed to the high cost of groceries and the anticipated impact of Kroger buying Albertsons—a $24.6 billion deal first announced in October 2022.
"American families are the big winner today, thanks to the Federal Trade Commission. The only people who stood to gain from the potential merger between Albertsons and Kroger were their wealthy executives and investors," asserted Liz Zelnick of Accountable.US. "The rest of us are letting out a huge sigh of relief knowing today's victory is good news for competitive prices and consumer access."
Describing the federal decision as "a victory for commonsense antitrust enforcement that puts people ahead of corporations," Food & Water Watch senior food policy analyst Rebecca Wolf also pointed out that "persistently high food prices are hitting Americans hard, and a Kroger-Albertsons mega-merger would have only made it worse."
"Already, a handful of huge corporations' stranglehold on our food system means that consumers are paying too much for too little choice in supermarkets, workers are earning too little, and farmers and ranchers cannot get fair prices for their crops and livestock," she noted. "Today's decision and strengthened FTC merger guidelines help change the calculus."
Like Wolf, Farm Action president and co-founder Angela Huffman similarly highlighted that "while industry consolidation increases prices for consumers and harms workers, grocery mergers also have a devastating impact on farmers and ranchers."
"When grocery stores consolidate, farmers have even fewer options for where to sell their products, and the chances of them receiving a fair price for their goods are diminished further," Huffman explained. "Today's ruling is a win for farmers, workers, and consumers alike."
Some advocates specifically praised Khan—a progressive FTC chair whom President-elect Donald Trumpplans to replace with Andrew Ferguson, a current commissioner who previously worked as chief counsel to Senate Minority Leader Mitch McConnell (R-Ky.) and as Republican counsel on the Senate Judiciary Committee.
"Today's decision is a major win for shoppers and grocery workers. Families have been paying the price of unchecked corporate power in the food and grocery sector, and further consolidation would only worsen this crisis," declared Groundwork Collaborative executive director Lindsay Owens in a statement.
"FTC Chair Lina Khan's approach is the blueprint to deliver lower prices, higher wages, and an economy that works for everyone," Owens argued. "The rebirth of antitrust enforcement has protected consumers against the worst of corporate power in our economy and it would be wise to continue this approach."
Laurel Kilgour, research manager at the American Economic Liberties Project, called the federal ruling "a resounding victory for workers, consumers, independent retailers, and local communities nationwide—and a powerful validation of Chair Khan and the FTC's rigorous enforcement of the law."
"The FTC presented a strong case that Kroger and Albertsons fiercely compete head-to-head on price, quality, and service. The ruling is a capstone on the FTC's work over the past four years and includes favorable citations to the FTC's recent victories against the Tapestry-Capri, IQVIA-Propel, and Illumina-Grail mergers," Kilgour continued.
"The court also cites long-standing Supreme Court law which recognizes that Congress was also concerned with the impacts of mergers on smaller competitors," she added. "We applaud the FTC for securing one of the most significant victories in modern antitrust enforcement and for successfully protecting the public interest from harmful consolidation."
Despite the celebrations, the legal battle isn't necessarily over.
The Associated Pressreported that "the case may now move to the FTC, although Kroger and Albertsons have asked a different federal judge to block the in-house proceedings," and Colorado is also trying to halt the merger in state court.
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Trump Taps Anti-Trans Lawyer Harmeet Dhillon for Key Civil Rights Post
"Dhillon has focused her career on diminishing civil rights, rather than enforcing or protecting them," argued one critic.
Dec 10, 2024
LGBTQ+ and voting rights defenders were among those who sounded the alarm Tuesday over Republican President-elect Donald Trump's selection of a San Francisco attorney known for fighting against transgender rights and for leading a right-wing lawyers' group that took part in Trump's effort to overturn the 2020 presidential election to oversee the U.S. Department of Justice Civil Rights Division.
On Monday, Trump announced his nomination of Harmeet Dhillon to head the key civil rights office, claiming on his Truth Social network that the former California Republican Party vice-chair "has stood up consistently to protect our cherished Civil Liberties, including taking on Big Tech for censoring our Free Speech, representing Christians who were prevented from praying together during COVID, and suing corporations who use woke policies to discriminate against their workers."
"In her new role at the DOJ, Harmeet will be a tireless defender of our Constitutional Rights, and will enforce our Civil Rights and Election Laws FAIRLY and FIRMLY," Trump added.
However, prominent trans activist Erin Reed warned on her Substack that Dhillon's nomination—which requires Senate confirmation—"signals an alarming shift that could make life increasingly difficult for transgender people nationwide, including those who have sought refuge in blue states to escape anti-trans legislation."
Trump has picked Harmeet Dhillon as Assistant Attorney General for Civil Rights. She has stated that it must be "made unsafe" for hospitals to provide trans care, and frequently shares Libs of TikTok posts. She intends to target trans people in blue states. Subscribe to support my journalism.
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— Erin Reed (@erininthemorning.com) December 10, 2024 at 8:14 AM
Reed continued:
Dhillon's most prominent work includes founding the Center for American Liberty, a legal organization that focuses heavily on anti-transgender cases in blue states. The organization's "featured cases" section highlights several lawsuits, such as Chloe Cole's case against Kaiser Permanente; a lawsuit challenging a Colorado school's use of a transgender student's preferred name; a case against a California school district seeking to implement policies that would forcibly out transgender students; and a lawsuit against Vermont for denying a foster care license to a family unwilling to comply with nondiscrimination policies regarding transgender youth.
Reed also highlighted Dhillon's attacks on state laws protecting transgender people, as well as her expression of "extreme anti-trans views" on social media—including calling gender-affirming healthcare for trans children "child abuse."
Last year, The Guardian's Jason Wilson reported that the Center for American Liberty made a six-figure payment to a public relations firm that represented Dhillion in both "her capacity as head of her own for-profit law firm and Republican activist."
Writing for the voting rights platform Democracy Docket, Matt Cohen on Tuesday accused Dhillon of being "one of the leading legal figures working to roll back voting rights across the country."
"In the past few years, Dhillon—or an attorney from her law firm—has been involved in more than a dozen different lawsuits in Arizona, Colorado, Georgia, Maine, Michigan, North Carolina, Virginia, and Washington, D.C. challenging voting rights laws, redistricting, election processes, or Trump's efforts to appear on the ballot in the 2024 election," Cohen noted.
As Maya Wiley, president and CEO of the Leadership Conference on Civil and Human Rights, said in a statement Tuesday, "The Department of Justice's Civil Rights Division has the critical responsibility of enforcing our nation's federal civil rights laws and ensuring equal justice under the law on behalf of all of our communities."
"That means investigating police departments that have a pattern of police abuse, protecting the right to vote, and ensuring schools don't discriminate against children based on who they are," Wiley noted. "The nomination of Harmeet Dhillon to lead this critical civil rights office is yet another clear sign that this administration seeks to advance ideological viewpoints over the rights and protections that protect every person in this country."
"Dhillon has focused her career on diminishing civil rights, rather than enforcing or protecting them," she asserted. "Rather than fighting to expand voting access, she has worked to restrict it."
A staunch Trump loyalist, Dhillon has also embraced conspiracy theories including the former president's "Big Lie" that the 2020 presidential election was stolen, and has accused Democrats of "conspiring to commit the biggest election interference fraud in world history."
She was co-chair of the Republican National Lawyers Association when it launched Lawyers for Trump, a group that urged the U.S. Supreme Court to intervene on behalf of the former president after he lost the 2020 election.
Cohen also highlighted Dhillon's ties to right-wing legal activist and Federalist Society co-chair Leonard Leo, described by Sen. Sheldon Whitehouse (D-R.I.) as a "lawless con man and crook" for his refusal to comply with a Senate subpoena and his organization of lavish gifts to conservative U.S. Supreme Court justices.
"We need a leader at the Civil Rights Division who understands that civil rights protections are not partisan or political positions open to the ideological whims of those who seek to elevate a single religion or to protect political allies or particular groups over others," Wiley stressed. "We need a leader who will vigorously enforce our civil rights laws and work to protect the rights of all of our communities—including in voting, education, employment, housing, and public accommodations—without fear or favor."
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'Landmark Victory': US Proposes Endangered Species Protections for Monarch Butterfly
"We're hoping that this is a call to everybody to say this species is in decline, and now is our opportunity to help reverse that decline," said one federal scientist.
Dec 10, 2024
Biodiversity defenders on Tuesday welcomed a "long overdue" move by the U.S. Fish and Wildlife Service toward protecting the monarch butterfly under the Endangered Species Act—the result, the Center for Biological Diversity said, of a lawsuit filed by several groups to safeguard the pollinators and their fragile habitat.
The FWS proposed designating the butterfly as threatened with extinction, four years after monarchs were placed on a waiting list for protection.
"For too long, the monarch butterfly has been waiting in line, hoping for new protections while its population has plummeted. This announcement by the Fish and Wildlife Service gets this iconic flier closer to the protections it needs, and given its staggering drop in numbers, that can't happen soon enough," said Steve Blackledge, senior director of conservation campaigns for Environment America.
Monarch butterflies journey from Mexico each spring to points across the United States east of the Rocky Mountains to pollinate and reproduce. When cooler weather arrives they migrate back to the south for the winter.
But their populations have declined by more than 95% from over 4.5 million in the 1980s, leaving the western monarch with a 99% chance of becoming extinct over the next six decades, according to federal scientists.
The decline has been driven by the widespread use of herbicides like Roundup on milkweed, the monarch's sole food source, as well as the use of neonicotinoid insecticides. Millions of monarchs are also killed by vehicles annually during their migration, and in their winter habitats they face the loss of forests due to logging.
"The monarch butterfly is an iconic North American species and like other such iconic species, including the bald eagle and American peregrine falcon, it too deserves a chance at recovery."
Rising temperatures have also disrupted the monarch's reproduction and migration, with warmer weather tricking them into staying in the north later in the year.
"The species has been declining for a number of years," FWS biologist Kristen Lundh toldThe Washington Post. "We're hoping that this is a call to everybody to say this species is in decline, and now is our opportunity to help reverse that decline."
Western monarchs are down to an estimated 233,394 butterflies, while experts say there are several million eastern monarchs in existence.
"The protections that come with Endangered Species Act listing increase the chance that these precious pollinators will rebound and recover throughout their historic range," said Andrew Carter, director of conservation policy for Defenders of Wildlife. "The monarch butterfly is an iconic North American species and like other such iconic species, including the bald eagle and American peregrine falcon, it too deserves a chance at recovery."
The FWS is also proposing to designate 4,395 acres of the western monarch's overwintering sites as a critical habitat.
If the butterfly's protections are finalized—a process that could be completed by the end of 2025—landowners would be required to get federal approval for development that could harm the monarch.
During his first term, President-elect Donald Trump weakened the Endangered Species Act, limiting the definition of a "critical habitat."
"Today's monarch listing decision is a landmark victory 10 years in the making. It is also a damning precedent, revealing the driving role of pesticides and industrial agriculture in the ongoing extinction crisis," said George Kimbrell, legal director at the Center for Food Safety. "But the job isn't done... The service must do what science and the law require and promptly finalize protection for monarchs."
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