John Ydstie

Obama Names OMB Controller As Acting IRS Commissioner

John Ydstie — Fri, 17 May 2013 09:25:00 +0000

On Thursday, President Obama named Daniel Werfel, 42, acting IRS commissioner. The announcement comes a day after the resignation of Steven Miller, who got caught up in the controversy over the IRS targeting Tea Party groups.

Yen's Drop In Value Could Fuel Curency War

John Ydstie — Thu, 16 May 2013 08:24:00 +0000

Japan has embarked on a massive effort to stimulate its economy. Both the government and the central bank are collaborating to end a long period of stagnation and deflation. But the effects are also being felt outside Japan.

Housing Recovery Lifts Other Sectors, Too

John Ydstie — Thu, 02 May 2013 21:27:00 +0000

The government's employment report for April comes out Friday. It's an important measure of the economy's health and the advance signals have been mixed. One report this week showed layoffs falling to a five-year low, but another suggests disappointing jobs creation.

At least one sector is providing some positive news for the job market: housing.

It was only a year or so ago that housing was a big drag on the economy, and the main reason for the disappointing recovery. But that's changed. Jim O'Sullivan, chief U.S.

Regulators Warn Banks On Direct-Deposit Loans

John Ydstie — Fri, 26 Apr 2013 00:16:00 +0000

Consumer advocates call them "debt" traps. The banks that offer them call them direct-deposit advances and describe them as available funds for short-term emergencies.

But the cash advances have many of the negative characteristics of payday loans. And on Thursday, U.S. bank regulators took a step toward protecting consumers from the risks they pose.

Japan's Big Stimulus Move Shocks Globe's Market Watchers

John Ydstie — Thu, 11 Apr 2013 21:49:00 +0000

Currency traders were stunned last week by aggressive action from Japan's central bank. The Bank of Japan embarked on a bond-buying program that, by one measure, is twice the size of the extraordinary moves by Ben Bernanke and the Federal Reserve in the United States. The BOJ's move is an effort to shock the Japanese economy out of more than a decade of sluggish growth and deflation.

Jens Nordvig, global head of currency strategy at Nomura Securities, was one of many market watchers surprised by the strength of the Bank of Japan's move.

Cyprus' Crisis Frames Eurozone As 'Work In Progress'

John Ydstie — Fri, 29 Mar 2013 07:07:00 +0000

On the second day since Cyprus reopened its banks, depositors continue to face restrictions on getting at their money. ATM withdrawals are limited to 300 euros a day, and there are limits on how much cash travelers can take abroad.

The controls are designed to keep worried depositors from draining the banks and moving money out of the country.

Odd Political Bedfellows Agree: Banks Still Too Big To Fail

John Ydstie — Tue, 19 Mar 2013 22:21:00 +0000

Amid Washington's dysfunction, one issue has united some liberal Democrats and conservative Republicans: a common concern that "too big to fail" is alive and well.

Despite the Dodd-Frank financial reforms, these lawmakers believe the nation's largest banks still pose a threat to the economy and that the government will step in to bail them out if they get in trouble.

At a recent hearing on Capitol Hill, Sen. Elizabeth Warren, D-Mass., confronted Federal Reserve Chairman Ben Bernanke with her concerns. "We've now understood this problem for nearly five years," she said.

Time For The Fed To Take Away The Punch Bowl?

John Ydstie — Wed, 06 Mar 2013 22:35:00 +0000

The stock market's long climb from its recession bottom has some people concerned it may be a bubble about to burst — a bubble artificially pumped up by the Federal Reserve's easy-money policy. That's led to calls — even from within the Fed — for an end to the central bank's extraordinary efforts to keep interest rates low.

Even as the Dow Jones industrial average was reaching its nominal record Tuesday, Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, continued his criticism of the central bank's massive intervention, calling it unhealthy.

Geithner Began With 'Smoldering' Economy; What Does He Leave?

John Ydstie — Fri, 11 Jan 2013 08:44:00 +0000

Outgoing Treasury Secretary Timothy Geithner has had a bruising four years. He took office when the U.S. economy was plunging into the worst recession since the Great Depression.

Nominating Jack Lew as Geithner's successor Thursday, President Obama praised his departing Treasury secretary for helping to get the economy back on track.

"With the wreckage of our economy still smoldering and unstable, I asked Tim to help put it back together," Obama said.

After The Fiscal Cliff, Businesses Say Some Uncertainty Remains

John Ydstie — Tue, 08 Jan 2013 23:43:00 +0000

Businesses complained that the uncertainty surrounding the "fiscal cliff" froze their decisions about hiring and expanding, which hurt the economy. Washington has now managed half a deal, which settles tax issues, at least for the time being. But has that removed enough uncertainty to boost some business hiring and investment?

Vickers Engineering in New Troy, Mich., makes parts for auto companies, agriculture equipment manufacturers and the oil and gas industry.

Reading The Economic Tea Leaves For 2013

John Ydstie — Fri, 28 Dec 2012 21:38:00 +0000

The U.S. economy was a bit of a disappointment in 2012. During the early months of the year, job creation was surprisingly strong, but by the end of the year, uncertainty about the election and the "fiscal cliff" slowed the economy's forward motion.

The Fed Boosts The Economy, But What About The Risks?

John Ydstie — Wed, 26 Dec 2012 22:32:00 +0000

The Federal Reserve continued to keep its foot on the accelerator in 2012, using unusual tactics to try to boost economic growth.

Unemployment Rate Drops, But Picture Not All Rosy

John Ydstie — Sat, 08 Dec 2012 11:54:00 +0000

Transcript

SCOTT SIMON, HOST:

This is WEEKEND EDITION from NPR News. I'm Scott Simon. Turns out that Superstorm Sandy didn't do as much damage as many expected to the nation's employment predicament. At least that's what the government's monthly data on the jobs market told us yesterday.

Republican Plan Would Change Social Security COLA

John Ydstie — Tue, 04 Dec 2012 23:05:00 +0000

The Republican plan to avert the "fiscal cliff" that the White House rejected Monday includes at least one element that's likely to produce controversy: a proposal that would, among other things, affect the cost of living adjustment for Social Security.

"The basic argument is that the current annual inflation adjustment for Social Security and some other federal benefits overstates the true impact of inflation," NPR economics correspondent John Ydstie tells Audie Cornish

Raising Taxes On The Rich: Canny Or Counterproductive?

John Ydstie — Fri, 30 Nov 2012 23:23:00 +0000

As negotiations continue in Washington over a plan to avoid the fiscal cliff — that combination of tax hikes and spending cuts scheduled for Jan. 1 — one big sticking point is whether to raise tax rates for high-income Americans.

Congress and the White House constructed the cliff last year, thinking it would force them to focus on solving the deficit problem. But they're still battling over what approach makes the most sense.

President Obama and other Democrats have been clear that they think raising tax rates for the wealthy is a sensible way to raise revenue and narrow the budget gap.