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 21:46:00 +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 22:04:00 +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.

What Would Obama Do (If There's No Debt Ceiling Deal)?

John Ydstie — Sat, 12 Jan 2013 11:42:00 +0000

Transcript

SCOTT SIMON, HOST:

This is WEEKEND EDITION from NPR News. I'm Scott Simon.

You might've chuckled a bit this week, if you heard about the trillion-dollar platinum coin plan, to perhaps address Washington, D.C.'s debt ceiling stalemate. But it will certainly be no laughing matter if the U.S. Congress refuses to raise the borrowing limit, and the U.S. government defaults on its debt.

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 23:33:00 +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 21:18:00 +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 23:05:00 +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.

How Much Income Taxes Could Rise: A Breakdown Of The Options

John Ydstie — Fri, 30 Nov 2012 10:04:00 +0000

"No substantive progress has been made." That's what House Speaker John Boehner had to say Thursday about efforts to avoid automatic spending cuts and tax increases at year's end.

The administration's lead negotiator, Treasury Secretary Tim Geithner, met with congressional leaders from both sides of the aisle Thursday, looking for an agreement on the hazard Congress and the White House created last year to focus their minds on deficit reduction.

Perhaps the most important sticking point is over income tax rates.

In Fiscal Cliff Talks, Higher Taxes Vs. Closing Loopholes

John Ydstie — Mon, 19 Nov 2012 08:25:00 +0000

The White House and Congress continue to work on a deal that avoids the fiscal cliff and cuts deficits in the long run. One of the biggest hurdles is President Obama's proposal to raise tax rates for the wealthy.

Republicans think a better course would be to raise revenue by closing loopholes and limiting deductions for high-income people.

Studies Vary On How Many Jobs Will Be Lost If Taxes On The Wealthy Rise

John Ydstie — Thu, 15 Nov 2012 10:06:00 +0000

Republicans claim President Obama's plan to raise taxes on the wealthy will cost the economy 700,000 jobs. Another study from the Congressional Budget Office puts the number of lost jobs as 200,000. But both studies also assume millions of new jobs will be created.

Lew, Bowles Rumored To Replace Treasury's Geithner

John Ydstie — Mon, 12 Nov 2012 09:07:00 +0000

A second term means some new Cabinet appointments for President Obama, including at the Treasury. After four pretty grueling years, Secretary Timothy Geithner has made it clear he will be leaving Washington.

White House press secretary Jay Carney said last week that Geithner would be staying on through the inauguration. He's also expected to be a "key participant" in "fiscal cliff" negotiations.

The Treasury secretary was arguably the most important Cabinet post in the first Obama administration. Geithner had wobbly banks, auto bailouts and the Great Recession on his plate.

The Upside To Plunging Off The Fiscal Cliff

John Ydstie — Fri, 09 Nov 2012 22:53:00 +0000

Now that the election is over, Washington is transfixed by the fiscal cliff, the automatic tax increases and spending cuts due to take effect Jan. 1 if nothing is done.

The sudden shock could seriously damage the economy.

But some Democrats and policy analysts are suggesting that going over the fiscal cliff could help break the political logjam.

Rep.

Opening Lines Set For A Deal To Avoid Fiscal Cliff

John Ydstie — Thu, 08 Nov 2012 08:26:00 +0000

With the election over, attention in Washington has turned to the nation's debt and deficit challenges — most immediately the looming fiscal cliff. That's the $600 billion worth of expiring tax breaks and automatic spending cuts set to start taking effect Jan. 1.

The president and Congress agreed to those automatic measures to force themselves to find a more palatable compromise to rein in deficits.

Romney's Jobs Plan Relies On His Tax Proposal

John Ydstie — Tue, 09 Oct 2012 08:29:00 +0000

As part of Solve This, NPR's series on major issues facing the country, we're examining the presidential candidate's approach to boosting employment. After looking at President Obama's strategy, it's time to examine the plan of GOP nominee Mitt Romney.

Mitt Romney says he has a plan with 59 bullet points detailing how to boost growth and job creation.

Obama's Jobs Plan Focuses On Federal Investment

John Ydstie — Mon, 08 Oct 2012 20:41:00 +0000

In the next two installments of Solve This, NPR's series on the major issues facing the country, we'll examine each presidential candidate's approach to boosting employment.

Easy Money May Boost Economy But At What Cost?

John Ydstie — Fri, 28 Sep 2012 07:24:00 +0000
The world's central banks are pumping cash into their economies, pushing down interest rates in hopes the ready cash and lower rates will boost borrowing and economic activity.

IMF's Lagarde: Uncertainty Slows Global Recovery

John Ydstie — Tue, 25 Sep 2012 11:42:00 +0000
Managing Director of the International Monetary Fund Christine Lagarde says recent actions by the European Central Bank mark a positive turning point in Europe's financial crisis. But she warned that uncertainty elsewhere will continue to slow the pace of the global recovery.
Back in July, the IMF was forecasting world growth of just under 4 percent for next year. The group's economists will issue a new forecast in a couple of weeks.

Fed Stimulus Expected, But Remedy May Not Be Right

John Ydstie — Thu, 13 Sep 2012 06:03:00 +0000
Federal Reserve policymakers are meeting in Washington, trying to decide whether — and exactly how — to boost the sluggish economy. Many analysts are expecting the Fed to take action, but they're also beginning to question whether another stimulus program will have any effect.
Fed Chairman Ben Bernanke made clear in a speech in Jackson Hole, Wyo., last month that he's not satisfied with the low level of economic growth and the high level of unemployment.

Critics Say Ryan's Record Belies Tough Deficit Talk

John Ydstie — Sun, 09 Sep 2012 18:59:00 +0000
Paul Ryan has a reputation as a deficit hawk. Mitt Romney's running mate has proposed budgets that cut non-defense spending significantly, and advocated controlling Medicare costs by making it a voucher program. But critics argue there's a lot in the Wisconsin congressman's record that undermines his deficit-hawk reputation.
When Ryan gave the GOP response to President Obama's State of the Union address last year, he restated his commitment to debt and deficit reduction.
"We face a crushing burden of debt.