PRICE GOUGING IS INFLATION

Appeals court says Texas agency set electricity prices too high during 2021 winter storm

By Erin Douglas and Emily Foxhall, The Texas Tribune

Congress Avenue in Austin during Winter Storm Uri on Feb. 16, 2021. 

Photo by Jordan Vonderhaar/The Texas Tribune

March 19 (UPI) -- A Texas appellate court surprised the electricity world Friday by ruling that the Public Utility Commission overstepped its authority during the deadly February 2021 winter storm when it raised the price of electricity to the maximum, $9,000 per megawatt-hour.

The price was set that high on Feb. 15 and 16 and kept there for days by the commission in charge of regulating Texas' electricity in an effort to tell the market that more power generation was urgently needed. Its leadership believed that the financial tool meant to adjust the cost of electricity was malfunctioning as electricity generators fell offline and grid operators cut power to homes and businesses, the ruling explains.

The price of electricity is fluid in Texas; it goes up when demand is high in order to incentivize more production and keep the grid from being overloaded. But the state's electricity market monitor said in the aftermath of the storm that Texas overcharged retail electricity providers by $16 billion for the power used as the storm dragged on -- prices that left providers with massive debt and in some cases landed customers with giant bills.

The exorbitant price of electricity during the storm pushed retail power providers and electricity cooperatives into financial distress across Texas. Many were forced to buy power on the wholesale market at high prices and filed for bankruptcy in the aftermath of the storm.

During the 2021 legislative session, Texas senators pushed for a financial remedy to a 32-hour period during the week of the storm when regulators kept wholesale power prices at the $9,000 cap after more generation came online, but they couldn't come to an agreement with their counterparts in the House. The power grid legislation that passed ultimately did not address the issue. Instead, legislators passed laws that would allow companies to access cheap, long-term loans to avoid passing the large costs on to consumers all at once.

The electric utility Luminant appealed the PUC's pricing decisions in the month after the storm. It argued that the commission exceeded its authority in setting the price at the maximum, among other points. The Austin-based Third Court of Appeals agreed in its ruling Friday. But the consequences for its decision are unlikely to be immediately felt in Texas' electricity market, since the court remanded the case for further consideration and the decision may still be appealed to the Texas Supreme Court.

Vistra Corp., Luminant's parent company, lost at least $1.6 billion during the storm because it paid very high prices for natural gas to run its plants and was forced to procure electricity in the wholesale market to meet its delivery obligations to customers.

"We agree with the decision today by the Court of Appeals in Austin, but this is an ongoing legal proceeding and we cannot predict the final outcome," Vistra said in a statement.

The Public Utility Commission declined to comment on the decision, first reported by The Dallas Morning News.

If the order stands, it could theoretically create a "gigantic mess" for the PUC and the state's grid operator, the Electric Reliability Council of Texas to unwind the transactions that occurred during the days when the price was set at the $9,000 cap, said Alison Silverstein, who previously worked as a senior advisor for both the PUC and the Federal Energy Regulatory Commission.

"You would have to figure out who paid what to whom and sort of undo the daisy chain of transactions and sales as you're repricing," said Silverstein, who now works as an energy consultant in Austin.

That would be a long process with little chance of benefiting end users, she said. "I don't think the end consumer will ever see a penny of benefit out of this."

But Silverstein and other electricity experts who spoke with the Tribune on background doubted whether a legal remedy would go as far as unwinding the transactions that occurred during the storm -- more likely is that it would impact other litigation among energy companies still battling in court rooms in the aftermath of Winter Storm Uri, or provide a specific remedy for Luminant.

"Practically speaking, the odds of getting a meaningful resolution apart from the legal principles would be very challenging," Silverstein said. There might be many lawsuits, she said, but, "the money is long gone."

This article originally appeared in The Texas Tribune, a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy.

Louisiana residents in 'Cancer Alley' file lawsuit to ban new petrochemical plants


Residents in a Louisiana community, known as “Cancer Alley,” have filed a federal lawsuit against St. James Parish, calling decisions to put petrochemical plants in Black neighborhoods racist as they demand new plants be banned. 

Photo courtesy of Denka Performance Elastomer LLC

March 21 (UPI) -- Residents in a Louisiana community known as "Cancer Alley" have filed a federal lawsuit against St. James Parish, calling decisions to put petrochemical plants in Black neighborhoods racist. They demanded new plants be banned.

A coalition of environmental groups, founded by Black women, filed the lawsuit Tuesday in the U.S. Eastern District Court in New Orleans. The suit says parish officials "intentionally chose to locate over a dozen enormous industrial facilities in the majority Black 4th and 5th Districts, while explicitly sparing white residents from the risk of environmental harm."

The lawsuit calls for a ban on new petrochemical plants and a ban on expanding existing facilities -- which would be a first in Louisiana -- because of concerns over pollution and adverse health effects.

Residents say the parish approved nearly every petrochemical company request during the past 46 years in order to locate their facilities in majority-Black areas, while rejecting requests to locate them in white areas, the lawsuit states.

In a news conference before the lawsuit was filed, the groups said their requests have been ignored repeatedly, including in 2019 after a number of new facilities were approved by the St. James Parish Council.

"Over and over, St. James Parish has ignored our cries for basic human rights," said Shamyra Lavigne of the group Rise. "Enough is enough."

The groups, filing the lawsuit, said a ban on solar farms was approved by the parish council last year after the mostly white community of Vacherie complained the farms could lower property values and cause damage during hurricanes.

"White residents didn't want solar farms in their backyards because they didn't like the aesthetics," Lavigne said. "But we have petrochemical plants in our backyards, and they're polluting us."

The industrial corridor west of New Orleans, known as "Cancer Alley," has also become a focus of the Biden administration as it works to mitigate the environmental effects of long-term pollution on overburdened communities.

The Justice Department has even taken action against Denka Performance Elastomer LLC over its "unacceptable cancer risk" to neighborhoods near the plant.

RELATED Evacuations ordered in Louisiana parish as train derailment causes acid leak

While parish leaders say the plants create new jobs, residents say that is not the case as many of the facilities are heavily automated.

"They always promise jobs and economic opportunity, but our neighborhoods don't see any of that," said Barbara Washington of Inclusive Louisiana. "All we see is smoke and smog and smell the pollution."

SEE

https://plawiuk.blogspot.com/2023/03/residents-sue-louisiana-parish-to-halt.html

$625M settlement in Michigan water crisis makes it largest civil settlement in state history

A Michigan judge Tuesday approved a final settlement related to the tainted-water cases from the city of Flint, creating what will become the largest civil settlement in the state’s history.

 Photo by Molly Riley/UPI | License Photo

March 21 (UPI) -- A Michigan judge Tuesday approved a $625 million final settlement related to Flint's tainted-water crisis, creating what will become the largest civil settlement in the state's history.

Genesee County Circuit Court Chief Judge David Newblatt finalized the settlement between the defendants, the City of Flint, and the State of Michigan, the state's attorney general, Dana Nessel, confirmed in a statement.

The historic settlement will see the state pay $600 million, while the city will cover $20 million. Flint-based McLaren Regional Medical Center will be required to pay $5 million, while Michigan-based Rowe Professional Services is responsible for $1.5 million.

The combined $625 million settlement was given preliminary approval in November 2021.

On Friday, the U.S. Court of Appeals for the Sixth Circuit affirmed a lower court ruling related to attorney fees. Defendants had argued attorneys in the case should be entitled a lower percentage of the settlement.

The settlement establishes a process for those defendants to submit claims. Claimants are eligible if they owned or lived in a residence or owned a business that received water from the Flint Water Treatment Plant. A person is also eligible if they ingested or came into contact with water received from the plant for at least 21 days during a 30-day period or were diagnosed with Legionnaires' Disease.

"This historic settlement cannot undo the unimaginable hardship and heartbreaking health effects these families and children in Flint have endured," Nessel said in the statement.

The water crisis began on April 25, 2014, when Flint switched its drinking water supply to the Flint River and away from Lake Huron and the Detroit River. The water supply was not properly treated, exposing residents to lead and other contaminants, including bacteria. The drinking water was not declared entirely free of lead until January 2017.

Thousands of people are still suffering the psychological effects of the water crisis.

Tuesday's settlement will see Michigan pay more than $600 million to defendants in Flint's tainted-drinking water crisis. The city of Flint will pay $20 million. 

Photo by Molly Riley/UPI | License Photo

 

Volunteers distribute cases of water at City Hall in Flint, Mich., in 2016 after drinking water was found to be contaminated with lead after the city's source was switched from the Detroit Water and Sewerage Dept. to the Flint River in 2014. File Photo by Molly Riley/UPI | License Photo

Milestone Carbon plans carbon capture, sequestration facility in Louisiana


Climeworks, already a leader in Europe in the technology needed to pull CO2 out of the air, joined a consortium petitioning for funds to build a similar facility in Louisiana. Image courtesy of Climeworks

March 21 (UPI) -- Adding its name to a growing chorus of voices, carbon abatement company Milestone Carbon said Tuesday it launched plans to build a carbon capture and sequestration facility in Louisiana.

Louisiana and the broader Gulf Coast region are adopting carbon abatement technology as the global energy sector tries to find a way to address climate concerns while still using the forms of energy that are available today.

Milestone said it was interested in developing carbon storage technology on 46,000 acres of land in Louisiana's Terrebonne Parish. The company said it could store "hundreds of millions of tons" of carbon dioxide, a potent greenhouse gas, in underground geological formations.

"Louisiana has many of the critical elements for successful carbon capture projects, including great geology, strong policy support, and significant industrial emissions," said Milestone Carbon Senior Vice President Chris Davis.

RELATED Norway sees strong energy sector interest in offshore carbon storage

Milestone's is but one of the many carbon storage projects planned for Louisiana. Billions of dollars in investments are going toward commercial-scale developments, which was heralded late last year by Gov. John Bel Edwards.

"The collaboration and innovation to bring carbon capture and storage technology forward at this scale reaffirms our state's ability to grow our economy without sacrificing our long-term emission-reduction goals to net zero by 2050," he said.

Last week, Battelle, Climeworks and Heirloom Carbon submitted their proposal to the Energy Department to secure funds from last year's bipartisan Inflation Reduction Act to support the development of the planned Project Cypress direct air capture (DAC) hub along the U.S. Gulf Coast.

RELATED Denmark awards first-ever contracts for carbon storage offshore

DAC technology uses large fans to blow air through a solution of potassium hydroxide to pull CO2 from the atmosphere.

Climeworks has already built two carbon capture facilities similar to what's proposed for Louisiana. The first can pull 900 tons of CO2 from the air each year for use in greenhouses. Its second facility can capture 50 tons per year, which the company plans to bury in basalt formations deep beneath Earth's surface.

Scottish energy company SSE makes $120M investment in hydro-storage facility

The Pitlochry Dam. Scotland has made novel uses of its water resources for decades. Photo courtesy of SSE Renewables

March 21 (UPI) -- Scottish energy company SSE Renewables said Tuesday it planned a major investment in what could be the region's largest hydro-storage facility, doubling existing capacity.

SSE said it was providing a $120 million investment in the so-called Coire Glas project, a project that could hold 30 gigawatt hours of long-term storage of water-based renewable energy.

"At the flick of a switch, Coire Glas would begin generating enough renewable energy to be able to power 3 million homes in just under five minutes," SSE stated. "Critically, the Coire Glas project could provide this level of firm, flexible power for up to 24 hours non-stop."

Hydro storage works by utilizing a series of reservoirs. Water moves uphill through the system when energy is ample and comes back downhill to drive turbines when resources are scarce.

RELATED Italian energy company Eni makes breakthrough in wave energy

The Scottish government has focused on novel renewable sources of energy for years, with German energy company RWE starting a prototype for turbines that run on wave energy in the early 2010s.

In February, a tidal energy array off the northern coast of Scotland, MeyGen, became the first facility of its kind to generate 50 gigawatt-hours of electricity over its lifespan.

Construction for the first phase of the MeyGen project began in January 2015 with the installation of four tidal turbines boasting a peak capacity of 1.5 megawatts each. A second phase could start as early as 2027 and developers are already in the planning stages for a 312 MW phase four.

RELATED Dogger Bank: World's biggest offshore wind farm could get even bigger

Coire Glas received planning consent from the Scottish government in 2020 and SSE hopes to make a final investment decision on the facility next year. If approved, it could be up and running by the turn of the decade, making it the first such facility to be built in 40 years.

While it has Scotland's consent, SSE says it needs support from the government in London before moving forward.

"Whilst Coire Glas doesn't need subsidy, it does require more certainty around its revenues and it is critically important the U.K. government urgently confirms its intention on exactly how they will help facilitate the deployment of such projects," SSE's Finance Director Gregor Alexander said.

Scottish energy company SSE Renewables is planning the region's first major hydro-storage facility in 40 years. Image courtesy of SSE Renewables

Norway's oil and gas production misses government expectations

Norway's government reported that both oil and gas production levels were lower than expected, though the country has made a steady string of new discoveries already this year. 

Photo courtesy of Harald Pettersen/Equinor


March 21 (UPI) -- Norway, among the major energy suppliers to the European economy, reported Tuesday that both crude oil and natural gas production in February were short of the government's expectations.

The Norwegian Petroleum Directorate, the nation's energy regulator, reported that crude oil production averaged 1.77 million barrels per day in February, about 2.8% lower than the government expected and comparable to January. January production of 1.76 million bpd, however, was about 0.4% more than forecast.

Gas production averaged 12 billion cubic feet per day, off 1.2% from the government's and again on par with January levels. January gas production was 0.8% below forecast.

The NPD in its monthly production report does not offer reasons for any month-on-month variances.

RELATED High production and higher temperatures to keep natural gas prices in check

Variances month-on-month are nonetheless small and Norwegian energy companies continue to boast a string of successes that began at the start of the year.

Energy major Equinor last week said it made its eight discovery since 2019 in the Troll field in the North Sea. Named Heisenberg, Equinor believes the discovery holds between 24 million and 84 million barrels of oil equivalent, with most of that in the form of natural gas.

"Our Troll exploration play keeps delivering," said Geir Sortveit, a senior vice president for exploration and production at Equinor. "With discoveries in eight out of nine exploration wells, we are approaching a success rate of 90%."

RELATED A new oil discovery off Norway has a substantial upside, the government said

Norwegian production peaked at around 3.4 million barrels of oil equivalent in 2001 and has been on a slow decline ever since. Despite lower volumes relative to major producers such as the United States, its proximity to Europe makes it an important part of the regional energy economy.

The United Kingdom, the Netherlands and Sweden account for about half of Norway's total exports of natural gas. Almost all of its crude oil exports go to European economies.

Revelers in Spain celebrate Fat Sunday

(17 images)

Photos by Paul Hanna/UPI

License photo | Permalink

Revelers turn out for the annual Fat Sunday Carnival celebrations in the small Spanish towns of Navalosa and Navalacruz on Saturday and Sunday. People dress up in traditional half man/half beast costumes and masks made of animal parts -- cow horns, horsehair, etc. -- or local plants ahead of Lent.

A carnival reveler dressed as a traditional "Harramacho" poses during a carnival festival in the village of Navalacruz, Spain, on February 18, 2023. The "Herramacho" figures, whose costumes are made from natural materials collected from the surrounding environment, were believed to protect family and cattle in pre-Roman rituals. 

The "Herramacho" figures' costumes are made from natural materials collected from the surrounding environment.

The ancient festival has been celebrated for centuries in Navalacruz. 

Parades are part of the weekend-long festivities. 

The festival was traditionally held to protect cattle and children. 

Traditional music and dance are also part of the festival, which comes before Lent and the arrival of spring. 

Onlookers gather to watch a man jumps over a bonfire. 

Participants also walk through the mountains and participate in rituals as part of the celebration.

The celebration comes from the traditions of the vettones, a pre-Roman people that lived in the region. 

A carnival reveler looks down from the mountain. 

A carnival participant arrives in costume.

The costumes are meant to appear fierce. Some of half-man/half-beast. 

A group attends in agricultural-themed costumes. 

Carnival revelers dressed as "Cucurrumachos" with masks made out of animal parts, including horse hair, ram or cow horns, and dressed with striped blankets and cowbells, take part in a traditional Fat Sunday carnival in Navalosa, Spain, on Sunday. 

The origins of the Cucurrumachos are believed to be Celtic and related to agriculture and animal breeding. 

The "Cucurrmachoes" wear striped blankets and cowbells. 

Revelers dressed as "Cucurrumachos" carry animal horns through the street. 

LGBTQ RIGHTS ARE HUMAN RIGHTS!

Republicans seize on transgender rights ahead of 2024

BY BROOKE MIGDON AND JULIA MANCHESTER - THE HILL  - 03/22/23 

Getty Images/Tommy Wu

Republicans have seized on transgender rights ahead of 2024, with policy proposals including punishing doctors who treat transgender youths to barring transgender women and girls from playing on school sports teams with their peers.

In a February campaign video, former President Trump pledged to enact a federal law that recognizes only two genders if he is reelected in November, claiming that being transgender is a concept that has only recently been manufactured by the “radical left.” The former president in the video also announced his intent to enact close to a dozen policies if he is elected in 2024, all of them targeting transgender people.

Florida Gov. Ron DeSantis (R), who is seen as a top 2024 GOP contender, has called for physicians who provide gender-affirming health care to transgender minors to be sued, and Florida under his administration has barred transgender minors from accessing puberty blockers, hormone therapies and surgeries. A state health department rule adopted in August prohibits transgender Floridians, regardless of age, from using Medicaid to help pay for gender-affirming health care.

Other declared and potential GOP candidates, including Virginia Gov. Glenn Youngkin, South Dakota Gov. Kristi Noem, South Carolina Sen. Tim Scott and Nikki Haley, a former South Carolina governor and ambassador to the United Nations, have proposed policies or made comments that have drawn criticism from the transgender community.

The trend has left transgender Americans watching with concern as the 2024 presidential race kicks into gear.

“Across the community, there’s a broad array of reactions,” said Imara Jones, the founder and chief executive of TransLash Media. “Some people are afraid, others are motivated, others are angry, others are fighting back.”

For Jones, a Black transgender woman who discusses the politicization of her identity on her podcast, “The Anti-Trans Hate Machine,” the fact that all of the major GOP hopefuls have proposed or enacted policies seen as targeting transgender and LGBTQ rights is disappointing, but not surprising.

“This is the result of a decades-long strategy,” Jones argued, pointing to lobbying efforts and model legislation pushed by conservative evangelical organizations, including the Alliance Defending Freedom and the Family Research Council.

Despite consensus among most major medical organizations that gender-affirming care for both transgender youths and adults is safe and medically necessary, more than 100 state bills introduced this year seek to restrict access to care, according to the American Civil Liberties Union.

Meanwhile, state Republican parties across the country have targeted transgender identities in their party platforms. In its official party platform adopted last year, the Texas GOP said state Republicans should oppose “all efforts to validate transgender identity” and said the party recognized homosexuality as an “abnormal lifestyle choice.” Maine Republicans similarly adopted a platform that promised to classify the “promotion of biological genders other than those of male and female homo sapiens” in public schools as child sexual abuse under state law.

Polling shows a divide on the issue overall. An NPR/Ipsos survey released last year found that just 24 percent of Americans support allowing transgender women and girls to play on sports teams consistent with their gender identity, while 63 percent of respondents said they were against it, including 88 percent of Republicans.

Democrats, according to the survey, are especially split, with 46 percent in support of allowing transgender athletes to compete and 41 percent opposed. Most Independents polled — 63 percent — said transgender women and girls should not be permitted to compete on female sports teams, while 21 percent said they should.

Just three in 10 respondents said they support laws or policies that prevent transgender youth from accessing gender-affirming health care, according to the survey.

Republicans have cited the polling in arguing they have room to make inroads with voters outside of their party.

“I don’t think Republicans are actively campaigning on the issue but responding to a handful of instances that have recently become a big deal,” said Alex Stroman, a Republican strategist.

Among the issues that garnered media attention recently was the debate surrounding former University of Pennsylvania swimmer Lia Thomas, who made waves last year as the first openly transgender athlete to win an NCAA Division 1 national championship in any sport.

Noem was among the potential 2024 Republicans who weighed in, rolling out ads critical of rules allowing transgender women to compete in sports. Under Noem’s leadership, South Dakota in 2022 enacted the year’s first law prohibiting transgender athletes from competing on school sports teams that match their gender identity. Since then, 10 states have followed suit, bringing the national total to 19.

While some Republicans agree the issue could play well with their base, there are questions as to how it would translate to a broader electorate in a general election. Some have argued that focusing on the economy, crime and the situation at the southern border is better for reaching more voters in a general election.

A poll released by the Human Rights Campaign, an LGBTQ advocacy group, last year found that a majority of voters were largely motivated by issues like inflation and abortion to cast a ballot in November’s midterm elections. Less than 5 percent of voters said gender-affirming health care for transgender youth or transgender participation in sports motivated them to vote.

Stroman blamed Democrats for shifting the conversation away from kitchen table issues.

“Republicans do want to talk about actual issues facing the American people,” Stroman said, “but Democrats are afraid of their abysmal record on failing banks, multiple train derailments and defeating China, so they use these types of wedge issues — which affect very few actual people in this country — to try and change a system that doesn’t need fixing in the first place.”

Another national GOP strategist told The Hill that Republicans are not targeting transgender people, or LGBTQ people more broadly, at all, maintaining that Republican candidates are laser-focused on protecting children and families.

“I think that phrasing it that way as an LGBTQ issue is kind of feeding into the talking points of the left because that is how they will frame it,” the strategist said.

Democrats, meanwhile, have accused Republicans of weaponizing the issue to generate a political response.

“It also speaks to the hypocrisy of the Republican Party because they act as if certain communities are only represented within certain political parties,” Democratic strategist Antjuan Seawright told The Hill.

“I think what we have to do is always respond with truth and continue to stand up for people,” Seawright said.

But Democrats have been noticeably quieter than Republicans when it comes to transgender rights, focusing instead on issues like infrastructure and inflation. It’s a strategy that could backfire, said Jones, of TransLash Media.

“By not commenting or saying anything, Democrats are allowing Republicans to define the issue,” Jones said.

“What that means is that when the conversation comes up for debate, it’s largely going to be held on Republican terms, which can’t be good for Democrats,” she said. 

Warren steps up criticism of Powell following rate hike, says he is ‘dangerous’ to serve as Fed chair

BY JARED GANS - 03/22/23 

Greg Nash

Sen. Elizabeth Warren (D-Mass.) questions Federal Reserve Chairman Jerome Powell about his semiannual Monetary Policy Report to Congress before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, March 7, 2023.

Sen. Elizabeth Warren (D-Mass.) stepped up her criticism of Federal Reserve Chairman Jerome Powell following the Fed’s most recent interest rate hike Wednesday, saying that he is a “dangerous man” to serve in his role. 

Warren told CNN’s Jake Tapper in an interview that Powell is doing a “terrible job” in his position and is risking sending the economy into a recession with the Fed’s continuous interest rate increases. 

“I think he’s a dangerous man to have in this job,” she said. 

Warren’s denunciation of Powell came after the Fed announced earlier in the day that it is raising interest rates for the ninth consecutive time, ticking the baseline range up 0.25 points to a range of 4.75 to 5 percent. 

The raises have been part of the Fed’s plan to get inflation under control and drive it back under the target of 2 percent. The annual inflation rate dropped from 6.4 percent in January to 6 percent last month, continuing a downward trend from the peak of 9.1 percent but still much higher than the goal. 

Powell has said he is willing to take necessary steps to reduce inflation even if it causes an economic downturn, and the Fed has been aggressive in combatting it, raising interest rates by 0.75 points four times in a row last year. 

The economy has shown some resilience in continuing to add hundreds of thousands of new jobs, but the recent collapse of Silicon Valley Bank and Signature Bank has rattled the market, causing some economic experts to expect the Fed might hold at the current interest rate. 

Warren said Powell has spent the five years he has served in his position weakening regulations for the large banks like Silicon Valley and Signature. 

“I predicted five years ago, the consequence of that kind of weakening would be that we would see these banks load up on risk, look for short-term profits, give themselves the ginormous bonuses and big salaries, and then some of those banks will explode, and that is exactly what has happened on Chair Powell’s watch,” Warren said. 

Silicon Valley Bank collapsed after the bank did not have enough cash on hand to fulfill withdrawal requests and needed to sell assets to increase its liquidity. That led to a bank run after customers learned about the situation. 

Warren said Powell is “trying to drive” the economy into a recession with the interest rate hikes and raise the unemployment by more than 1 percentage point in a 12-month period. 

The unemployment rate rose from 3.4 percent to 3.6 percent last month despite job growth, and the Fed’s projected unemployment rate for this year was set at 4.5 percent following Wednesday’s interest rate increase. 

Warren said the unemployment rate has risen by at least 1 point in that time period 12 times, and every time it has resulted in a recession. 

“So that’s the direction he’s trying to push us. That is a danger to our economy,” she said. 

Warren has previously issued harsh criticism on Powell in his role as Fed chair, arguing that he has failed on both monetary policy and regulation. She called for a pause on interest rate increases on Sunday ahead of the Fed’s Wednesday decision.

Janet Yellen reassures bankers during speech in front of lobbying group


Treasury Secretary Janet Yellen speaks during a Senate Finance Committee hearing at the U.S. Capitol last Thursday. She delivered remarks to the American Bankers Association on Tuesday. 

Photo by Bonnie Cash/UPI | License Photo


March 21 (UPI) -- Treasury Secretary Janet Yellen told the American Bankers Association on Tuesday that the government is prepared to protect all depositors if a bank fails as it did following the collapse of Silicon Valley Bank in California and Signature Bank in New York.

Yellen, addressing the association's summit in Washington, D.C., on Tuesday morning, said that the U.S. financial system is on solid footing. Silicon Valley Bank in California and Signature Bank in New York failed within days of each other, sending shockwaves through the market.

"The situation demanded a swift response," Yellen said of the bank failures and the Federal Deposit Insurance Corporation stepping in to guarantee all depositors regardless of amount. "In the days that followed, the federal government delivered just that: decisive and forceful actions to strengthen public confidence in the U.S. banking system and protect the American economy.


"Let me be clear: the government's recent actions have demonstrated our resolute commitment to take the necessary steps to ensure that depositors' savings and the banking system remain safe."

RELATEDSwiss National Bank announces takeover of troubled rival Credit Suisse

Yellen said the government took action recognizing that the banks, regardless of size, play a critical role in keeping the entire system balanced.

"Large banks play an important role in our economy, but so do small- and mid-sized banks," Yellen said. "These banks are heavily engaged in traditional banking services that provide vital credit and financial support to families and small businesses. They also increase competition in the banking sector, and often have specialized knowledge and expertise in the communities they invest in."

Yellen said the action government took to strengthen public confidence in the banking system helped to avoid the kind of panic that could have caused more depositors to remove their money.

RELATED Big U.S. banks come to rescue of First Republic Bank in $30B deal

"The steps we took were not focused on aiding specific banks or classes of banks," Yellen said. "Our intervention was necessary to protect the broader U.S. banking system. And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion."

"I believe that our actions reduced the risk of further bank failures that would have imposed losses on the Deposit Insurance Fund, which is paid for through fees on insured banks."

Yellen said 11 banks announced $30 billion in deposits into troubled First Republic Bank last week, adding that it represented "a vote of confidence" in our banking system.

RELATED Janet Yellen to Congress: Banking system 'remains sound'

"We are continuing to monitor conditions closely," Yellen said. "My team and I have been in close communication with many of you, in addition to federal and state regulators, other market participants, and international counterparts."

Yellen said they are trying to find out why Silicon Valley Bank, which catered to tech startups, and Signature Bank, which was devoted to cryptocurrencies failed but it was important to find those answers.

"While we don't yet have all the details about the collapse of the two banks, we do know that the recent developments are very different than those of the Global Financial Crisis," Yellen said. "Back then, many financial institutions came under stress due to their holdings of subprime assets."

"We do not see that situation in the banking system today. Our financial system is also significantly stronger than it was 15 years ago. This is in large part due to post-crisis reforms that provided stronger capital standards, among other important improvements."

Yellen said the Treasury Department remains committed to making sure depositors will be protected during the current review of the banking system.

Artificial intelligence is not going to take all our jobs

BY ADAM THIERER, OPINION CONTRIBUTOR - 03/22/23 

iStock

Advancements in robotics and artificial intelligence someday could affect human careers.

Why isn’t everyone already unemployed? After all, experts have been predicting for decades that technological automation might soon take most of our jobs. With the rise of even more powerful artificial intelligence (AI) and robotic technologies, these same fears are leading to a fresh round of worse-case forecasts about the displacement of skills and sectors. 

A new study forecasts that “up to 49 percent of workers could have half or more of their tasks exposed” to AI-powered large language models like OpenAI’s GPT-4. A decade ago, researchers at the University of Oxford published a widely cited study that similarly predicted 47 percent of U.S. jobs were at high risk of automation. 

The good news is that the sky is not falling due to AI. Largely the opposite of what the Oxford scholars predicted about AI job losses came true. Since 2013, the U.S. economy has added 16 million jobs and the unemployment rate fell steadily despite continued automation and increasing robotization of many workplaces. The profession that the Oxford report said faced the highest risk of technological disruption—insurance underwriters—saw employment grow 16.4 percent. Meanwhile, the biggest employment problem the economy faces today is that many business sectors are struggling to find workers to fill open positions. The White House even announced a set of new initiatives to lure more Americans back into the workforce.

There are other reasons to be skeptical about grim forecasts regarding AI and employment. First, many past predictions about technologically induced unemployment were wrong because, as noted in a new R Street Institute report on the history of automation fears, we often lack the imagination to describe future jobs or worker skills. A review of old government labor market forecasts or economic papers finds no mention of today’s hottest jobs or skills. Glassdoor’s 2022 best jobs list includes job titles such as: full stack engineer, enterprise architect and machine learning engineer. These jobs would not have been comprehensible to analysts or economists in past decades.

Second, pundits often fail to appreciate how humans adapt rapidly in the face of technological change. Where experts see ominous threats because of new technologies, many others see an opportunity to create new businesses and jobs. A new book, “Working with AI: Real Stories of Human-Machine Collaboration,” offers dozens of case studies of firms integrating algorithmic technologies in the workplace today and shows how organizations are “practicing augmentation, not large-scale automation.” We are using our machines to create entirely new skills and professions.

We’ve seen this story before. Until the 1960s, human “calculators” did hard math on paper and chalkboards until mainframe computers came along and took over those jobs. But that automation freed up those workers to build even better computing machines. The result was the digital revolution, with entrepreneurs and workers seizing new opportunities.

Finally, many technological trends get over-hyped but often fail to materialize. The past decade has seen a lot of hype about autonomous vehicles, leading to much speculation about the potential for job loss for professional drivers. But it turns out that robotic driving is much harder than anticipated and there continues to be a massive shortage of human drivers. 

Market forecasts also tend to overlook how social norms and cultural resistance affect technological adoption. A robot could potentially cut your hair or even be your therapist, but in both cases most people will want an actual human doing that job. Many tasks on airplanes today are handled by autopilot technology, which has dramatically improved aviation safety, but we still want human pilots in the cockpit.

Many jobs will be susceptible to AI and automation, however. Government can try to help reskill workers, even though past retraining programs have not fared well. To better prepare the workforce of the future, policymakers can use a mix of policies to enhance STEM education, tax deductions for retraining, better online learning programs, technical recertification programs, portable benefits solutions and vocational apprenticeship models. It is equally important that lawmakers relax barriers to labor mobility and employment flexibility, especially occupational licensing rules. 

But AI isn’t going away and to prosper, we’ll need to learn how to quickly adapt alongside our latest technological creations.

Adam Thierer is a senior research fellow in technology and innovation at the R Street Institute