Tracey Samuelson, Fitch Ratings, Federal Reserve discussed on All Things Considered
This is marketplace, I'm KAI Ryssdal. Let me do a quick call back to my interview with pizza off the IMF chief economist at the top of the program specifically that bit about central banks Federal Reserve just for instance, and their role in the global economy critical is the short version of her answer, I it because central banks and their independence or under some pressure right now here in the United States as we have reported from President Trump directly and his top economic advisors. But elsewhere as well as some new research from Fitch Ratings out this week makes clear that pressure could come with some economic costs. Marketplace's Tracey Samuelson is on that one. When the economy slows it can be tempting for politicians to look for someone to blame. And the central Bank is obvious. Somebody berry can green at the university of California Berkeley says you can see this in countries like India Turkey Argentina what's new is that the United States has showing the crowd. The Federal Reserve is the world's most important central Bank. So James McCormack with Fitch Ratings says if it seen as coming under this kind of pressure peak spects other central banks to there's an increasing amount of commentary coming from political leaders directed toward central banks and encouraging them to adopt easier monetary policies lowering interest rates or even non-traditional ideas like allowing the fed to fund government spending by printing more money McCormack says countries face slowing growth and growing debt. The temptation is in will be to look to central banks for for at least part of the solution. And that would be to allow inflation to run a little bit higher. A little extra inflation may not sound. So scary says can Kutner and econ professor at Williams College, but it can easily get out of hand if the central Bank is under pressure in a couple of years prior to elections to get the economy's run faster. And then in the years after the election experiences a hangover. Then you can see how this is going to set in motion a boom bust cycle. Kutner says it's really risky to prioritize short term political goals over long-term economic stability. I'm Tracey Samuelson for marketplace. This item today from the marketplace desk of correlation is not causation, except maybe sometimes it is Bank of America said today, it's going to bump it's minimum wage for hourly workers starting may the first BFA they is gonna pay two dollars an hour. More seventeen bucks a twenty dollar an hour. Minimum wage in a couple of years, and there have been minimum wage increases elsewhere lately as well Amazon's at fifteen dollars, Costco, the same target just it's going to thirteen bucks. A couple more next year federal minimum wage, by the way, seven dollars twenty five cents an hour. Marketplace's Mitchell Hartman looked into what's going on here. And it comes with this three word hint. And therein lies the correlation. Causation thing. Here's the three words tight labor market. Here's Mitchell Bank of America is setting a high bar higher than leading. Big box retailers way, higher than the federal minimum wage Daniel Jau at jobsite glass door says Bank tellers are making six point two percent more than a year ago, Bank tellers are not just distributing cash or things that ATM could do banks are realizing that they actually do need tellers they need humans to interact with their customers. Ten years into the economic recovery. Says Nick bunker at indeed dot com competition for workers as fierce there's fewer and fewer unemployed workers and workers out of the labor force who'd want work, so employers need to increasingly bid up wages. Just check out. These annual increases in the glass door survey cashier up five and a half percent bartender like Mike Murray up thirteen and a half percent back in October two thousand seventeen I started out at twelve an hour plus tips by the middle of last year. I was at seventeen an hour. Plus tips Murray's thirty he poor. Drinks and manages a popular brew pub in the Seattle area. He graduated college into the great recession things have gotten better. There's more demand for skilled people who stay around. So that gives me a lot of leverage small businesses are on the losing end of that equation says and p trick at visted business advisory firm or hearing a lot of the ios saying they have challenges with even getting people to show up for the first day of employment. Employers can't afford seventeen or twenty an hour. They're offering perks tuition reimbursement or training to get workers to.