Week of June 12th, 2023

A key oversight threshold was lower under the original Dodd-Frank Act. When the rules were relaxed, experts say the risks may have increased.

Plus, does chicken belong in a smoothie?

Econ Extra Credit newsletter #154

Target and Bud Light bowed to pressure for supporting LGBTQ people, but now many of those shoppers may take their money elsewhere.

They’ve been operating under more scrutiny from the federal government and trying to manage the Federal Reserve’s higher interest rates.

It’s been three months since Silicon Valley Bank’s collapse began a season of turmoil for regional banks. We check in with some of those left standing. Plus, student debt assistance as a work perk?

The Biden administration hasn’t removed Trump’s tariffs on steel or aluminum — to the benefit of some U.S. manufacturers.

It’s still a relatively rare benefit: About 8% of employers in the country offer help with student loan debt.

The U.S. Secretary of State Antony Blinken will arrive in China to try to strengthen diplomatic ties between Washington and Beijing. Meanwhile, a private sector dignitary has just met with China’s leader Xi Jinping: Microsoft co-founder Bill Gates. We have more on what was discussed. Plus, the Federal Reserve’s thinking seems to point to an economy still humming along. So why didn’t the central bank raise interest rates again this week to try to slow the economy a bit? Well, you have to read between the lines, says Christopher Low, chief economist at FHN Financial. This has to do with concerns about the banking sector still lingering. And, it’s now more than three dozen states that have legalized cannabis products for medical use. But it’s not an affordable option for all patients.

The challenge to the Indian Child Welfare Act was also seen as a challenge to tribes’ political sovereignty.

Two major ticket industry companies have pledged to make pricing more transparent, if not cheaper.

More than three dozen states have legalized the medical use of cannabis products. But for some patients, it’s not an affordable option.

Some see them in the $45 per night “destination fee” on the hotel bill. Or maybe the $25 charge for not booking a plane ticket on the internet. The Biden Administration is pressuring companies to stop with surprise or undisclosed charges, and to be sure people know in advance the cost of a product or service. Which leads us to two major ticketing companies saying they’ll end hidden fees so at least buyers using Ticketmaster and SeatGeek will have more transparency about the full price of a ticket up front. Also, Google parent company Alphabet warns its employees about using artificial intelligence chatbots. And, some economic implications of the 7-2 U.S. Supreme Court decision to let stand the Indian Child Welfare Act.

From the BBC World Service: Young Liu, the chairman of Taiwan-based iPhone maker Foxconn, says the company is redrawing some of its supply chains as it navigates a new era of icy Washington-Beijing relations. Plus, Singapore will “progressively deploy” more patrol robots across the city-state after more than five years of small-scale trials. And, a multimillion dollar deal between audio streaming giant Spotify and the media group run by Prince Harry and Meghan Markle has been canceled.

French firm Thales is launching a credit card that interacts with a user’s smartphone to provide audio cues and transaction confirmations.

Plus, a story about sailing the retro way.

But having some students on a different schedule comes with challenges both societal and economic.

May retail sales were up 0.3%. How much longer can we keep on spending? Then, what it means to electrify the kinds of cars Americans want to drive.

Retail sales surprised with a 0.3% gain in May. Nearly every category advanced despite persistent concern about inflation.

With streaming services cutting into more live TV audiences, including sports, advertisers are changing their 2024 campaign strategies.

Venita Cooper, owner of Silhouette Sneakers & Art, recently released an apparel line inspired by the Tulsa Fast Breakers.

While EV trucks and SUVs are better for the environment than their gas-guzzling counterparts, they come with other problems.

Patient numbers have bounced back to prepandemic levels.

Finding money is exciting. But what’s next — keep it or return it? We team up with “Snap Judgment” to share a few stories about that dilemma.

The standards for determining this have changed yet again. And the latest ruling by the National Labor Relations Board brings back a method that could classify more people as employees. That’s making companies like Uber and Lyft pay close attention. Also, after the Federal Reserve skipped an interest rate hike yesterday, we’re already anticipating that they’ll increase rates at the next policy meeting. It’s part of the tightrope the Fed is trying to walk on inflation. And, what we pay for coffee beans reflects supply and demand on commodities markets … but not much else. Some in the coffee supply chain think the market needs restructuring to better reflect everything that goes into coffee, from labor to land to changing climate.

Farmers, roasters and economists say the price needs to reflect the labor that goes into the crop to ensure the long-term sustainability of the market.

The standard for defining who’s an employee and who’s an independent contractor has gone back and forth in the courts for years.

Along with a decision to hold interest rates steady, we got information about jobs, economic growth, inflation and, of course, the cost of borrowing from Federal Reserve Chair Jerome Powell yesterday. Some of the takeaways: As of now it’s likely we get two more interest rate hikes this year to try to keep inflation down, and there’s very little chance interest rates are going to get cut at all in 2023. Marketplace Washington correspondent Nancy Marshall-Genzer was at the Fed press conference yesterday and has more. Plus, the world’s first comprehensive regulations governing artificial intelligence are taking shape across the Atlantic. European Union lawmakers have voted on new limits and safeguards for AI. And, the struggle to get community college credits to count toward bachelor’s degrees.

Those hard-earned community college credits don’t always count toward a four-year degree.

From the BBC World Service: It’s arguably the most secretive and isolated country on Earth. North Korea has cut itself off from the outside world, and its borders have been sealed for three years in response to the COVID pandemic. Some of those living in North Korea have risked their lives to tell the BBC about how they’re struggling to survive. Plus, Japan’s main stock market index, the Nikkei 225, has been enjoying a rally, hitting 33-year highs. We find out why. And, is there such a thing as Beyoncé-nomics? She’s being blamed for higher-than-expected inflation in Sweden.

Molly Crabapple, an artist and writer, says generative AI tools should be regulated to protect artists.

The days of free data access might be over.

The Federal Reserve pressed the pause button on rate hikes today. We’ll discuss. Plus, could a soft landing be in Jerome Powell’s reach?

In Minneapolis, prices rose just 1.8% in the past year. Compare that to Miami, where inflation is at a whopping 9%.

Historian Blair LM Kelley traces that evolution through her own family roots.

Mortgage applications rose last week, thanks in part to a dip in mortgage rates, according to a new report. But credit availability has been falling.

Baby boomer Barbara Talisman quit her job to travel the world. Research shows her generation wants to live it up as younger folks spend less.

If the Fed can tamp down inflation without sparking a recession, it would be only the second time in history in U.S. history.

For the first time in 15 months, the Federal Reserve has kept its key interest rate unchanged.

Today, the Fed is all but certain to leave interest rates unchanged at the conclusion of its June policy meeting. That outcome is even more likely based on more data this week that shows inflation cooling. This would be the first time in more than a year that rates don’t go up at a Fed meeting. But the real story will be what Federal Reserve Chair Jerome Powell says about the path forward on fighting inflation. Plus, Japan’s plan to deal with its falling birth rate, which poses an existential threat to the world’s third largest economy. And, a lesson from rural Minnesota about how to hire and keep workers. With the overall U.S. job market still running strong, worker shortages are common. But this is something that remote parts of the country have dealt with for a while. And they have solutions.

In Monday’s Consumer Price Index report, rent prices rose 8.7% year-over-year in May. That sounds like a lot, but here’s why that number isn’t a reliable indicator of where rental prices are headed.

Rural towns have long dealt with labor scarcity, and many have strategies for attracting and investing in talent.

Well, they’re beginning to. School buses are going electric. And there’s a company in Georgia at the vanguard of this part of the energy transition. Plus, digging into inflation numbers for the U.S. economy, and deciphering whether rent prices are staying hot or cooling. Also, who holds the title of No. 1 beer in America? The landscape has shifted. And it comes after some consumers took issue with a Bud Light collaboration that featured a transgender influencer.

The 95-year-old Blue Bird Corp. sees its future in electric school buses, with a boost from federal incentives.

From the BBC World Service: Today, lawmakers in the European Parliament are taking on the twin challenge of regulating artificial intelligence and promoting its responsible use across the bloc. The European Union’s lead on technology and digital strategy, Margrethe Vestager, talks to the BBC’s Zoe Kleinman. Additionally, we hear what Japan is doing to address its falling birth rate. And, finally, Pakistan’s first female architect is awarded for her work empowering women.

Bias is embedded in artificial intelligence models because they’re trained on biased data from the internet. Reporting from Bloomberg News shows AI isn’t just replicating bias, but amplifying it.

A wide-ranging conversation with one of Seattle’s favorites on her trolliversary.

There’s still a ways to go before the Federal Reserve reaches its target of 2% inflation. Then, a look at the impact of New York City’s minimum wage for app-based delivery drivers.

The microchip shortage of recent years put the brakes on the production of new cars. That’s making for a low supply of used cars now.

The latest data shows inflation is well below its peak of more than 9% a year ago. But there’s a ways to go before the Fed reaches its 2% target.

The workers currently earn $7 an hour on average. Starting in July, they’ll make nearly $18 an hour before tips.

A labor shortage and a relatively strong economy contribute to high prices. Some experts worry about inflationary expectations.

Movements in money supply matter, but not as much as they used to.

A century ago, the railroad industry helped create an American art movement. But who’s profiting today?

More than 8,000 communities on Reddit are protesting API changes on the platform.

So, how ’bout that inflation? Today’s Consumer Price Index data looks good on the surface, but there are more troubling signs deeper down. Economist Jeffrey Cleveland helps us break down the report and what it means for the Fed ahead of its meeting later this week. Plus, an app for asylum seekers at the U.S.-Mexico border offers a way to access necessary immigration services, but migrants have been reporting a slew of problems including discrimination. 

The race is now on to reconstruct the section of I-95 and minimize economic disruptions.

Some migrants have spent months logging on everyday, scrambling for an appointment through the CBP One app.

It’s the “unfair game of life.”

As Philadelphia deals with the collapse of a section of Interstate 95, there’s been a rush to assess the cost of rebuilding the highway and the burden the city might feel in the coming months. We look into how residents and commuters will be affected, as well as what a construction timeline could look like. Plus, we chat with the founder and CEO of the “Disparity Trap” board game which aims to educate people about systemic racism in a more lighthearted way. 

From the BBC World Service: The Ukrainian government estimates an area the size of almost 2,000 football fields is currently under water, much of it some of the most fertile agricultural land on the planet. The UN’s aid chief, Martin Griffiths warns it will have a huge impact on global food security and prices. Plus, the BBC’s Olie D’Albertanson asks why nearly  half of the soccer teams in the English premier league are now American owned, and Sir Paul McCartney reveals a new Beatles song will be released, thanks to AI.

A report by the Consumer Financial Protection Bureau highlights how AI-powered chatbots, if poorly deployed, can harm consumers of financial services.

Plus, a little Jeff Bezos mystery.

“There’s always something to do here,” says Phillip Rollins, owner of the store OffBeat. “People just don’t know how to find it.”

Economists are divided on whether 2% is the appropriate goal for inflation right now. Then, how do we fund Social Security before benefits are cut?

How to staff up the slew of renewable energy projects ushered in under the legislation is a pressing question within the industry.

The trust fund supplementing income taxes could run dry within 10 years. Dennis Jansen of Texas A&M suggests reforms.

Some economists think the Fed should aim higher than that magical 2% rate.

Nearly a third of parents don’t know their schedule more than two weeks in advance, and more than 25% need child care outside of traditional work hours.

It may be down to layoffs. It may also be down to house-flippers.

New work requirements on welfare were part of the debt ceiling deal. How might they affect benefit recipients?

Department of Labor data show that hundreds of franchises were in violation of laws that protect minors.

There are two big events that economists will be tracking closely this week: the release of Consumer Price Index inflation data and the Fed’s rate decision shortly thereafter. We delve into the details with Julia Coronado, founder and president of MacroPolicy Perspectives. Plus, moderators across the social media platform Reddit will shut down select forums to protest the company’s move to charge developers using the website’s code. And finally, we talk with The Uncertain Hour host Krissy Clark about the new welfare work requirements passed in the debt ceiling deal. 

If you get a meal from a fast food franchise nowadays, there’s an increasing chance that it’s been prepared by an underaged worker who’s been working too many hours. We look at new Department of Labor data that delves into the surprising rise in child labor law violations in some states, and why it’s been pronounced in the fast food industry. Plus, the failed Credit Suisse has been fully taken over by rival UBS after a Swiss government deal earlier this year. And finally, the BBC’s Leanna Byrne looks into how there’s been a growing wave of food fraud as production costs rise. 

From the BBC World Service: Thousands of forums on the social media platform Reddit are being made inaccessible globally for 48 hours, as unpaid moderators around the world are protesting over planned changes; the BBC’s Zoe Kleinman explains. Plus, the BBC’s Paul Adams reports on the death of former Italian Prime Minister Silvio Berlusconi. And finally, the BBC’s Leanna Byrne hears why high food prices mean food fraud is on the rise.

It’s expensive to train and maintain generative AI chatbots. That could solidify the power of the big players and divide the market between low-end and high-quality, according to Will Oremus at The Washington Post.