Federal Reserve, Kai Ryssdal, Tracey Samuelson discussed on Marketplace



Hopefully and getting the unknown debris out of the way. Appreciate it for sixteen. Now KCRW. This is marketplace, I'm KAI Ryssdal. Let me do a quick call back to my interview with Gita goping off the IMF chief economist at the top of the program specifically that bit about central banks, the Federal Reserve just for instance, and their role in the global economy critical is the short version of our answer. I asked 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 an obvious. Somebody berry I 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 expects other central banks will to there's an increasing amount of commentary coming from political leaders directed toward central banks and encouraging them to adopt easier monetary policies, aka lowering interest rates were 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 and 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 Ken Kutner, an econ professor at Williams College, but it can easily get out of hand. If the central Bank is under pressure in the couple of years prior to elections to get economies 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 is going to pay two dollars an hour. More seventeen bucks a twenty dollar an hour. Minimum wage in a couple of years, then there have been minimum wage increases elsewhere lately as well Amazon's at fifteen dollars, Costco, the same target just to 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. Ben tellers are not just distributing cash or things ATM 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, the labor force who'd want work. So employers are needing 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 pours 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 an Petric at visted business advisory firm. We're hearing a lot of the ios saying they have challenges with even getting people to show up for the first day of employment employers that can't afford seventeen or twenty an hour. They're offering perks tuition reimbursement or training to get workers to stick around..

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