Most observers in Washington and for that matter the whole country too often lack clarity in noting that the Federal Reserve truly is the ultimate policy entity to modify, adjust, and re-define key elements of the world’s richest and most powerful economy. Moreover, the Fed’s board is independent of the Executive branch and is supposed to be free of political influence. The US Congress has oversight responsibility over its actions. The Federal Reserve Board like so many of the regulatory boards in Washington is safeguarded by this independence.

The stated reason for the creation of the federal reserve in 1913 just as Woodrow Wilson took over the presidency: to provide the nation with a safer, more flexible and more stable monetary/financial system. The four duties (areas) of the federal reserve are commonly known as the following:

• conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
• supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
• maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
• providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

The Federal Reserve System with Washington as its headquarters has twelve (12) regional banks. Interestingly enough, these regional banks are privately owned but are members of the Federal Reserve System. These include the first among equals (primus inter pares) New York, then Boston, Richmond, Cleveland, Atlanta, Philadelphia, Chicago, Kansas City, Dallas, Minneapolis, San Francisco and St. Louis. Many of these cities or regions have vast numbers of Latinos. Out west, San Francisco is the only regional Federal Reserve Bank west of the Rockies. The next three mid-western regions are Minneapolis, Kansas City and Dallas. The numbers of Latinos in these western states is most impressive and growing. Certainly Dallas, New York, Chicago, and Atlanta have also huge portions of the 46 million Hispanics nationwide. The current census being conducted and analyzed will help provide a clearer picture of the numbers and where they are living. But it can be argued that as of now out west with San Francisco as the only geographically western Federal Reserve Bank, the Hispanic congressional representation breaks down this way: the west has the majority with six in California (Roybal-Allard, Baca, Becerra, Napolitano, the two Sanchez sisters); one each in Colorado (Salazar) and New Mexico (Lujan) and two in Arizona (Grijalva and Pastor) and Dallas region has six (Ortiz, Gonzalez, Rodriguez, Cuellar, Hinojosa and Reyes) all in Texas. Chicago region has one Latino congressman (Gutierrez) and the New York region has two (Serrano and Velazquez) plus one congressman (Sires) from Northern New Jersey and the only Latino senator (Menendez) in the country (NJ). Atlanta has three from Florida (two Diaz-Balart brothers and Ros-Lehtinen). Therefore, the San Francisco and Dallas Federal Reserve Regions have over 15 Latino congressmen. Salazar in Colorado belongs to the Kansas City region; Atlanta is the third region to have Latino congressional representation. A closer look at these regional/sub-regional Federal Reserve Banks reveals few if any Latino representation on the regional bank boards.

In examining the composition of the scores of directors of these regional Federal Reserve Boards, only Dallas appears to have more than one Latino director. At the regional level, there is one (Roberto Estrada) of the main Dallas bank and at its sub-regional level San Antonio has four: Jorge Bermudez, Ricardo Romo, Ygnacio Garza and C. Treviño. Atlanta has one, Carol Tome at the regional director level. In the Atlanta region, Miami is touted as the banking center for Latin America, yet only one, Latino director is detected (Carol Tome). San Francisco has none at the regional or sub-regional level. Boston has one Luso-American (Portuguese: Cunha) on the board. Richmond, Cleveland, St. Louis, Minneapolis and Philadelphia don’t have any Latino sounding names on their boards. Interestingly enough, the leader of the regional pack, New York has one at the substantive level of director, Richard Carrion from Puerto Rico’s Banco Popular, but alas no other…More revealing is Kansas City with Lu Cordova from Boulder, Colorado as a key director, but uncertain that this board member is considered to be Hispanic. The sum of Latino representation in the Federal Reserve System’s decision-making circles is at best bleak.

As for the Fed’s board in Washington, the most powerful and key tool in the US economy, there is no Latino and never has been one. Yet, the Hispanic population is estimated now at least to be over 15% of the US overall population. The contribution by the Latino community to the US multi-trillion dollar economy is increasingly significant. It is rarely heard among the Hispanic congressional and Civic leadership on how the Fed affects the community in its operations or implementation of public economic policy. Plainly, the Fed’s actions affecting the money supply, credit, the cost of money, interest rates and how remittances are affected by supervising the flow of money transfers or exchange fluctuations have an increasingly important impact on the Latino community. Perhaps, the Obama administration will discover or find a qualified high-flyer Latino economist or financial type to serve on the Fed’s board. If we continue to wait for the nominal Hispanic leadership or self-styled Latino advocacy groups to discover the wondrous powers of the Federal Reserve, we could be in for a long wait. The growing awareness of the functions of the US economy in the context of the recent financial crisis and housing bubble along with high unemployment rates behooves the Latino community to seek greater representation and participation at the highest levels of the decision-making process.

One of the most troubling indicators is the rapid rise in the unemployment rates. In some states, like Michigan, Rhode Island, and California, it is already over 10% unemployment. Many of the country’s top economic analysts predict that the worst is yet to come. President Obama is using a lot of political capital in the so-called ‘stimulus bills’. Yet many economic pundits are noting that the new Administration must try every means to stem the increasing economic threats. Hence, stimulus bills may be a shot in the dark, but most reasonable people submit that it is better than doing nothing.

When one begins to consider the Latino plight in this dire economic situation, it becomes clear that both US Latino citizens and immigrant Latinos are feeling the pangs of this crisis like all other groups. But the real challenge is that even when the times were good, our socio-economic indicators demonstrated that we were fast becoming the underclass in many categories. These indicators included: highest school drop-out rates, higher than average unemployment rates and suggestions of a definite high under-employment rate (informal economy), poverty levels, increasing teenage pregnancies, other health concerns have become alarming with growing obesity and diabetes rates. Yet it can be easily demonstrated that the Latino community has progressed notably in the last two generations: home-ownership increased, two family incomes are increasingly common, vastly increased numbers of college and university graduates, many more small Latino businesses have flourished, infinitely more Latino elected officials at every level and infant mortality figures have dropped. Now this current economic crisis will be equally devastating to both poor and more affluent Latinos. The challenge is how to get our Latino community engaged in the serious discussion of actionable proposals that affect directly the livelihood of the Hispanic population.

The fact that three trillion dollars may be spent on rescuing our economic well-being is almost unfathomable; yet the Latino community needs its Washington leadership in Congress and the Administration to engage full force to make certain that these gargantuan spending bills provide some cover to the Latino community. This must become the primordial concern on the national Latino agenda.

Hispanic Congress-persons on the Appropriations Committee like Jose Serrano, Ed Pastor, Lucille Roybal-Allard and Ciro Rodriguez are in strategic positions to lead the dialogue within the community. Senators like Bob Menendez and Mel Martinez, who are both on the Banking and the Energy Committees, are also key to any effort for Latinos. Senator Menendez is also on Budget Committee. Nydia Velazquez is well-positioned as Chair of the Small Business Committee; and like Luis Gutierrez, Joe Baca, Ruben Hinojosa and Albio Sires, Velazquez is also a member of the Financial Services Committee. Loretta Sanchez has notably served in the powerful Joint Economic Committee of Congress as the only Hispanic and hopefully continues to be an active member. Mario Diaz-Balart even though a minority member serves on three powerful committees: Budget, Science and Technology and Transportation and Infrastructure. Xavier Becerra’s membership on the Budget Committee and the powerful Ways and Means Committee suggest perhaps that he is the lead on this urgent economic discussion affecting the Latino community. Taking up Hispanic educational challenges on Committee on Education and Labor would include Hinojosa, Raul Grijalva and Linda Sanchez. Charlie Gonzalez remains on the influential Committee on Energy and Commerce which oversees the Health care coverage, telecommunications and trade issues. Lastly, the Hispanic members of the important Agriculture Committee taking up the national nutrition issues in the country include Joe Baca (chair of Sub-Committee on Nutrition,) John Salazar and Henry Cuellar. These Congress people mentioned are key in this massive stimulus spending process.

Moreover, Hilda Solis, as Labor Secretary, should take up the mantle as the lead Hispanic in the Administration to ensure that our community gets a fair shake in the recovery efforts being put forth. Solis along with Cecilia Munoz, the Assistant to President Obama for Inter-Governmental Affairs must quickly master the intricacies of the OMB (Office of Management and Budget) process in the White House. OMB is the spending  or allocating traffic cop in any administration and has powerful authorities to determine the amounts and who gets the monies and  how they should be spent within the legislative language provided.

The Hispanic advocacy groups like National Council of La Raza, LULAC, the Cuban National Council, the National Puerto Rican Foundation and other Latino national and regional or local advocacy organizations must insist on action. The Hispanic Caucus should immediately form if it has not yet a structured working group within its organization to identify the Latino community needs in this economic crisis, the monies available, the mechanisms involved, and communicating the intricacies of the processes to the local governmental level. Nydia Velazquez the new Caucus Chair should move swiftly to ensure that the Latino representation is effectively felt and that the constituencies’ needs be addressed. A multi-trillion dollar spending program must include the basic and necessary resources for the Latino community to alleviate the impending hardships. A national discussion and consultation process among the Latino community is imperative to provide a better understanding of the deepening recession (for some) and depression (for others). These are extraordinary times, and the Latino leadership must step up to the challenge in an organized and effective manner.

For Latinos, Comprehensive Immigration Reform has been bandied around as the primordial theme in the Latino agenda as noted in the Latino State of the Union yesterday, which is expected to be positively addressed by President Obama. The fact remains that during the rugged campaign, immigration was patently avoided by both candidates. Hence, there is no electoral mandate to obtain comprehensive immigration reform legislation. However, among some Latino advocacy circles like the National Council of La Raza, the LULAC and MALDEF, immigration reform is being pronounced as a top priority and signaling the Obama team that they must resolve or seek legislation to alleviate the undocumented peoples’ plight . It should be pointed out that the two other significant and somewhat empowered groups of Latinos: the Puerto Ricans and the Cuban-Americans do not have an immigration issue as such. Both groups view immigration not an immediate concern: the Puerto Ricans are born U.S. citizens and the Cubans are paroled into the U.S. once they touch dry land. Hence, both have no employment issue for their newly arrived migrants or exiles. Mexican nationals in the US, along with numerous Central Americans, are the most anxious to see some movement on the immigration reform front. Mexican-Americans also are sensitive to the issue, but no overwhelming consensus on immigration exists among these Mexican Americans. They, along with other Latinos, often fret over the immigration debate becoming an anti-immigrant and ultimately anti-Latino. The California Latinos saw this happen in 1994 with the propositions to limit or deny services to the undocumented. Thus, it can be readily concluded that the Latino community as a whole may hold different views and priorities in the Latino agenda.

Most voting Latinos appear to be more interested in Obama tackling the current economic crisis, as evidenced by the most recent Pew Hispanic Center survey. It is considered the most menacing crisis since the Great Depression. Jobs, housing, education and health services are all being affected significantly by the crisis. The immigration reform goal is also on the radar, but according to several surveys, it is not the primary issue that is viewed as indispensable for immediate consideration. There is in fact a reasonable national consensus among all sectors of American society that immigration reform must be addressed and resolved. No one who is rational in thinking about or discussing the issue can seek to ignore or obstruct reform, but it is most difficult to see it as a top national priority in the first year of the new Administration. Obama, who during the transition period after the election, has amply demonstrated his pragmatic and middle of the road approach to national problem solving will not commit the same error the Clintons did in attempting early on to pass health reform. Health care, like immigration, is indeed a fundamental goal for this administration. But both involve and require enormous political capital, which will have to be safe guarded to ensure that it is available for addressing the burgeoning budget, massive economic infrastructure programs, jobs creation, and bailing out the automotive and banking sectors. Immigration, as vividly demonstrated almost three years ago in the last round of attempts to get legislation passed, evoked a glandular reaction from the ‘racist nativists’ and an enormous discomfort in many other areas of the economy. Now with the dire economic conditions of the country it suggests that any reform effort to address effectively the almost 12 million undocumented residents in the U.S will provoke a boisterous, sectarian, anti-immigrant backlash in the country. Regularizing (granting permission to work and reside in the US) these hopeful would-be-immigrants will be tantamount to some perceptions of amnesty. Admittedly, to introduce or officially recognize several million new workers under the circumstances would be politically harrowing. This involves officially welcoming several million new workers into an economy which at best is ailing. Therefore, one would require extraordinary political bravery or recklessness if it means jeopardizing other priorities on the Obama agenda.

The Congressional Hispanic Caucus and the Latino Advocacy groups like LULAC, MALDEF and NCLR must quickly strategize and meet with the Congressional and administrative leadership to determine the timelines, evaluate the political costs, the horse-trading involved, and be certain that before launching an all out national political effort there is a preliminary nose-count to ascertain the viability of legislative approval of any reform proposal. The Obama Administration will correctly address the economic priority, simultaneously the burning foreign policy issues like extricating ourselves from Iraq and continuing the efforts in Afghanistan will require enormous blood, sweat, tears and toil. In sum, Obama and his team will be most circumspect on when and how to introduce the immigration reform proposals. It will behoove the Latino leadership to assess and gauge the immigration reform efforts. Other items in the Latino agenda like housing, education, health, job opportunity and basic human needs will be included in the overall treatment of the economy. Latin America, as a foreign policy issue and a Latino priority, does not appear to be evident. Opportunities for Latinos in federal employment (civilan or military) also are not readily perceived. It remains to be seen who among the Latinos in Congress who will bear the torch on these issues. Luis Gutierrez, a Puerto Rican legislator from Illinois, has been the standard bearer on immigration. Senator Bob Menendez (a Cuban-American Democrat) has invariably sought to ensure that the State Department recruits and promotes Latinos.

Will someone like Silvestre Reyes, Loretta Sanchez or Solomon Ortiz, all senior members of the House Armed Services Committee, seek to lead the efforts to have more Latino general officers selected and promoted? Does Nydia Velazquez, as Chairwoman of the Small Business Committee, become an all encompassing and forceful factor in driving or leading Latino efforts to guide Latino small businessmen to more attractive government help in grants and loans? Also will Nydia Velazquez, as head of the Hispanic Caucus, organize and strategize the Hispanic/Latino Agenda with other Congresspersons to ensure that the Administration does not forsake its Latino constituency? Perhaps more interesting does Congressman Jose Serrano from his perch as Chair of the Subcommittee on Financial Services of the Appropriations Committee lookout for the Latino agenda in terms of lending or mortgages? Does Loretta Sanchez, as second ranking majority member of the Homeland Security Committee, oversee and moderate the heavy-handed behavior of DHS/ICE’s persecution of illegal foreign workers in job-sites? Will Joe Baca, as chair of the Agriculture Committee’s Sub-committee on Oversight and Nutrition, use his position to advance the Latino agenda’s possible concern with adequate nutrition? Do Hinojosa, Grijalva and Linda Sanchez all members of the Committee on Education and Labor dwell on the pending Latino concerns on education and perhaps take the lead on the Dream Act? And will they regularly meet with new Labor Secretary Hilda Solis to advance Latino labor issues? Perhaps Representative Nydia Velazquez can set up periodic (monthly) meetings with both Labor Secretary Solis and Interior Secretary Salazar to review the bidding on the Latino Agenda and help identify up-and-coming young Latinos among the political and career ranks of the federal bureaucracy. Does the Congressional Hispanic Caucus schedule quarterly meetings with the Latin American diplomatic corps to learn about the region’s problems, needs and desires? Does the Caucus get an initial meeting with Secretary of State Clinton and DoD Secretary Bob Gates to raise issues of policy concern not just in Latin America? Personnel issues should be on the agenda in these meetings. Formulating talking points ahead of time by the appropriate staffers for these meetings would demonstrate seriousness of purpose. Perhaps in the spirit of bi-partisanship, the Caucus should invite and meet with the Republican Latino members like Illeana Ros-Lehtinen, the ranking minority member of the House Foreign Affairs Committee and Lincoln Diaz-Balart, the ranking minority member on Rules Committee. Moving the over-all Latino Agenda will be challenging but focus, unity of purpose and excellent organization are imperative to success. The focus of this and several other blogs is to keep tabs and make our elected representatives more accountable.