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One of the nation's savviest politicians is in an unexpected fight.

Chicago Mayor Rahm Emanuel, President Obama's former White House chief of staff, is in an unprecedented runoff election next month.

The challenger, Cook County Commissioner Jesus "Chuy" Garcia, contends that Emanuel favors the rich and powerful over working-class Chicagoans. But Emanuel is firing back, attacking Garcia for having no plan to deal with the city's deep financial problems.

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Samantha Hernandez, 17, poses for a selfie with Chicago mayoral candidate Jesus "Chuy" Garcia during the St. Patrick's Day parade in Chicago. Paul Beaty/AP hide caption

itoggle caption Paul Beaty/AP

Samantha Hernandez, 17, poses for a selfie with Chicago mayoral candidate Jesus "Chuy" Garcia during the St. Patrick's Day parade in Chicago.

Paul Beaty/AP

Emanuel is the first incumbent Chicago mayor to be forced into a primary runoff — and it's a race that's signaling a deeper, growing divide between liberal and more moderate Democrats.

Several national progressive groups, including Democracy for America, MoveOn.org and the American Federation of Teachers, have banded together to take the fight to Emanuel in what they see as a fight between the "Elizabeth Warren Wing" and the "Wall Street Wing" of the Democratic Party.

Taking It To The Streets

Garcia walked through the Englewood neighborhood on the city's South Side with a natural ease that comes from three decades in Chicago politics, shaking hands with residents, talking with them about their jobs, families, and schools. And, of course, asking for their support.

For many residents of this mostly African-American community, the attention is welcome.

"I'm a neighborhood guy," he told residents.

That is the key distinction Garcia is trying to make in his campaign to unseat Emanuel, the first-term mayor: that he is of the neighborhoods and for the neighborhoods, while Emanuel's policies benefit the wealthy downtown.

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Chicago Mayor Rahm Emanuel, ahead of a televised debate Monday. Charles Rex Arbogast/AP hide caption

itoggle caption Charles Rex Arbogast/AP

Chicago Mayor Rahm Emanuel, ahead of a televised debate Monday.

Charles Rex Arbogast/AP

"Chicago neighborhoods are hurting," he said. "They haven't seen much recovery since the recession, and that will be the paradigm shift under my administration."

Garcia walked door to door on this block during recent campaigning, in particular because it's home of one of the 50 schools Emanuel's administration closed two years ago.

Carrissa Johnson, 38, who works in the Social Security Administration, says her son now has to walk a longer, more dangerous route to school. And she's also upset about the lack of investment in Englewood and neighborhoods like it under Emanuel.

"I don't think that he really cares about the inner community," she said. "I think everything goes more so up north than comes here."

Johnson admitted she "really doesn't know too much about" Garcia, but she added, "I don't think that it can get any worse, because Emanuel is not really doing his job, so I think that a change is very much needed."

Money Talks

Progressives have highlighted the millions of dollars Emanuel has spent to underscore the perception that he favors the well-heeled and well-connected.

Campaign finance reports show Emanuel has raked in about eight times as much as Garcia has. Emanuel has raised close to $20 million, including a recent $1.4 million haul from just eight wealthy donors, as of Wednesday.

Garcia, meanwhile, has raised $2.6 million, much of it from the Chicago Teachers Union, other unions, and progressive groups such as Democracy for America.

Looking to boost those figures, Garcia has a trip scheduled Thursday to Los Angeles to raise money from Latino business and community leaders.

'A Total Disconnect"

Helping lead Garcia around this neighborhood that has almost as many vacant lots and boarded-up buildings as there are occupied homes and businesses was Bishop James Dukes, pastor of nearby Liberation Christian Center. Dukes said he endorsed and worked for Emanuel's campaign four years ago.

"It's a total disconnect," he said of Emanuel now. "At no point does the administration seek the advice and help of those who are in the community until voting time — until they need us. ... In the meantime, all the decisions are made in a silo."

The message that Emanuel seems disengaged from the city's poorer neighborhoods, that he's arrogant and even abrasive, appears to be getting through to the mayor. He opened a recent campaign ad this way:

"They say your greatest strength is also your greatest weakness. I'm living proof of that. I can rub people the wrong way, or talk when I should listen. I own that."

It's the first ad Emanuel started airing after failing to get more than 50 percent in February's election, forcing him into this runoff.

Emanuel told voters he's driven to make a difference. That can require tough, even unpopular choices.

"Look, I'm not going to always get it right," he said. "But when it comes to fighting for Chicago and Chicago's future, no one's going to fight harder."

Trying To Rally Unions

Emanuel has clashed with many of the city's unions, most notably Chicago's teachers, who enlisted Garcia to challenge Emanuel.

The Service Employees International Union, or SEIU, which played a critical role on the ground during President Obama's two presidential campaigns, endorsed Garcia, too.

Many in labor worry about Emanuel's close relationship with Illinois' Republican billionaire Gov. Bruce Rauner, who often criticizes unions.

Emanuel met this week with several African-American labor leaders to try to allay their concerns. When one leader said, "We cannot let Illinois become a right-to-work state," Emanuel quickly agreed, adding, "I think right-to-work takes the rug from underneath the middle class."

On that and other issues, many of the labor leaders said they came away satisfied.

"We're looking for opportunities for people of color that look like us and a pathway to careers," said Will Irving, who is with Laborers Local 1001, "and I think we've accomplished a steppingstone out of this meeting."

When it comes to Emanuel, Irving added, "There are opinions that people have; there are facts about what the mayor has done. The mayor has done a lot of good things with the schools."

Irving also cited Emanuel's efforts in helping develop pathways to careers in the trades, among others, and said the mayor is more inclusive than he gets credit for.

"We have had a seat at the table," Irving said.

Laborers Local 1001 President Nicole Hayes echoed that.

"I think he has done a great job," she said, adding, "Under his leadership, the last four years, we've acquired almost 400 new positions with him. So we're endorsing him."

Earl Jackson of Plumbers Local 130 said his group is throwing its support to Emanuel.

"He's doing a good job," Jackson said.

Emanuel Comes Out Fighting

Never the political equivalent of a shrinking violet, at a debate Monday night, Emanuel hammered Garcia for failing to detail how he would fix city finances.

"Let me be clear here, there's a real difference," he said. "Chuy, you laid out a commission, not a plan."

Garcia didn't back down.

"This mayor has provided corporate welfare to his cronies, millionaires and billionaires in Illinois," he hit back, "and he promised four years ago to put Chicago's fiscal house in order, [but] we're in a financial free fall."

With less than three weeks to go until the April 7 runoff, Emanuel has a sizable lead in the latest polls.

Progressive groups concede defeating Emanuel is an uphill climb, but they are already satisfied with forcing him into a runoff. And they are confident their message is resonating beyond Chicago.

Domenico Montanaro contributed to this report.

Chicago mayor

Rahm Emanuel

Barack Obama

On a recent snowy afternoon on a farm in central Illinois, Dan Byers parked his pickup at the end of a dirt road and looked over some of his fertile land. A few years ago, high grain prices earned farmers here about $400 per acre for their corn and soybean crops. This year, it's possible that every acre Byers farms will cost him $50.

"It just takes a certain amount of fixed money to put a crop in and raise it," says Byers. "At today's prices, not much of anything works right now until there's a rebound."

Across the country, a number of farmers are likely to take a big pay cut this year. Nationwide, the U.S. Department of Agriculture expects farmers will earn a third less than they did last year.

The Salt

Why Farmers Aren't Cheering This Year's Monster Harvest

That blow to the bottom line is rippling through farm towns.

Economy

As Commodity Prices Plunge, Groceries May Be Next

Record corn production with no increase in demand – as well as a leveling off market for ethanol – have led to the lowest prices in six years: $3.80 a bushel, down from an all time high of $8.49 a bushel in August 2012.

Some farmers won't break even this planting season, which could force them to tap into their savings. That's bad news for Corn Belt towns whose prosperity depends largely on farmers and businesses linked to farming.

Frank Hofreiter owns the New Holland farm equipment dealership and employs 17 people in East Havana, Ill.

When corn prices peaked, Hofreiter sold close to $11 million worth of shiny blue tractors in a single year. He says he doesn't expect to crack $3 million in 2015.

"Everybody's just trimming back and not doing much buying on new equipment," says Hofreiter. "Especially big, large equipment — anything over $20,000."

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Kyle Garman, a technician at the the New Holland dealership in East Havana, Ill., takes apart the feeder head on a large combine. Owner Frank Hofreiter says farm customers are opting to repair old equipment rather than buy new. Abby Wendle/Harvest Public Media hide caption

itoggle caption Abby Wendle/Harvest Public Media

Kyle Garman, a technician at the the New Holland dealership in East Havana, Ill., takes apart the feeder head on a large combine. Owner Frank Hofreiter says farm customers are opting to repair old equipment rather than buy new.

Abby Wendle/Harvest Public Media

Hofreiter hasn't let anyone go yet. So far the company's machine shop — attached to the back of the dealership — is keeping employees busy. But if repair work falls off, Hofreiter said he'll have to cut employees' hours.

The industry leader John Deere reports that its sales are down by 40 percent from this time last year. That prompted the company to lay off nearly 2,000 workers in recent months – and more cuts could come.

"And you'll see more when the economy's like this, guy's will spend more on repairs," he says. "Instead of maybe guys, that tractor's got a bad engine, we'll trade it off today, well, no, we'll see if we can patch it together and fix it back up."

Todd Schaeffwer owns a bar down the road from the dealership. He estimates that three-quarters of his customers work in the farm sector.

"People will probably get laid off," Schaeffwer says. "We'll have to get back behind the charbroiler, behind the bar. Rather than just managing it, we'll have to work and manage it."

The Salt

From War To Plow: Why USDA Wants Veterans To Take Up Farming

Even as grain prices plummet, grain farming isn't getting any cheaper. The fixed costs of seed, fertilizer and chemicals are about the same as when corn was selling for twice as much.

Land is one of the biggest expenses. Sky-high prices put it out of reach for many farmers, so they rent acreage instead. The rising price of grain pushed rents to unprecedented levels. And even though prices have fallen, many landowners are refusing to lower the rent.

Scott Irwin is a professor of agriculture and consumer economics at the University of Illinois. He says high rents are forcing some renter farmers to breach their contracts.

"We're seeing stories of farmers who had signed multiple-year, cash-rent leases at those high rates actually just walking away from the leases this winter," Irwin says.

If corn prices stay low, rents will eventually have to follow. But in the meantime, many farmers are struggling to pay for their rented land.

Dan Byers rents some of the land he farms. While his budget's tight, he says he's paying up and staying put.

"In our situation, we've got some very long term relationships," Byers says. "You don't want to screw those up."

He'll continue to farm even though it's not likely to be profitable. With corn production expected to remain high, the USDA is predicting that prices will continue to fall well into next year.

Abby Wendle is a reporter with Tri States Public Radio and Harvest Public Media, a public radio reporting collaboration that focuses on agriculture and food production.

The Federal Reserve moved a step closer toward ending its zero interest rate policy. In a statement released moments ago, the Fed dropped a pledge to be "patient" before raising rates. But, the Fed's Open Market Committee said, it is unlikely to raise rates in April.

"The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term," the Fed said in a statement. "This change in the forward guidance does not indicate that the Committee has decided on the timing of the initial increase in the target range."

Fed officials had long signaled that they would be patient before raising rates.

As the Wall Street Journal reports:

"The central bank for years has been using carefully chosen words about the likely level and direction of short-term rates as policy tool, hoping promises about the future will influence other borrowing costs today, such as the level of long-term rates on mortgages or car loans.

"The approach has become particularly important since December 2008, when the Fed pushed its benchmark federal funds rate to zero amid the financial crisis and began promising it would stay there for an extended period."

But with unemployment rate falling and inflation moving toward the Fed's 2 percent target, policymakers may have decided it was time to be less assuring about rates.

Rates, of course, are just one thing Fed policymakers have their eye on. As Jacob Goldstein of NPR's Planet Money team reported on today's Morning Edition, when the economy seems strong enough, the Fed will start pulling that money – approximately $3 trillion of it — out of the economy. He says:

"The economy will start humming again at some point. Banks will start lending out all that money. If that happens too fast, it could be a problem: Inflation could take off. To be clear, that hasn't happened yet: Inflation is still quite low.

"Eventually, Fed officials will start destroying the money they created — winding down quantitative easing. But figuring out exactly when to do this is fraught. Do it too soon, and you plunge the economy back into another recession. Wait too long, and inflation takes off."

Federal Reserve

interest rates

The Federal Reserve moved a step closer toward ending its zero interest rate policy. In a statement released moments ago, the Fed dropped a pledge to be "patient" before raising rates. But, the Fed's Open Market Committee said, it is unlikely to raise rates in April.

"The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term," the Fed said in a statement. "This change in the forward guidance does not indicate that the Committee has decided on the timing of the initial increase in the target range."

Fed officials had long signaled that they would be patient before raising rates.

As the Wall Street Journal reports:

"The central bank for years has been using carefully chosen words about the likely level and direction of short-term rates as policy tool, hoping promises about the future will influence other borrowing costs today, such as the level of long-term rates on mortgages or car loans.

"The approach has become particularly important since December 2008, when the Fed pushed its benchmark federal funds rate to zero amid the financial crisis and began promising it would stay there for an extended period."

But with unemployment rate falling and inflation moving toward the Fed's 2 percent target, policymakers may have decided it was time to be less assuring about rates.

Rates, of course, are just one thing Fed policymakers have their eye on. As Jacob Goldstein of NPR's Planet Money team reported on today's Morning Edition, when the economy seems strong enough, the Fed will start pulling that money – approximately $3 trillion of it — out of the economy. He says:

"The economy will start humming again at some point. Banks will start lending out all that money. If that happens too fast, it could be a problem: Inflation could take off. To be clear, that hasn't happened yet: Inflation is still quite low.

"Eventually, Fed officials will start destroying the money they created — winding down quantitative easing. But figuring out exactly when to do this is fraught. Do it too soon, and you plunge the economy back into another recession. Wait too long, and inflation takes off."

Federal Reserve

interest rates