Stacey Vanek Smith

We Hear You

14 hours ago

The Indicator comes out every day, and every day we tackle a different topic: Venezuela, interest rates, plastic straws. And every day, we are lucky enough to get letters from you. Today on the show: We hear you! We respond to some comments, answer a few listener questions and ponder one of life's great mysteries: How, exactly, do you pronounce Hyundai?

Your bank has its own bank account — with the Federal Reserve. That account pays interest of nearly two percent and offers instantaneous payment clearning.

We, on the other hand, get much less than two percent on our own bank accounts, and clearing a check or money transfer can take days. The problems are worse for the large unbanked population in the United States, which faces burdensome costs and inconveniences because they lack access to basic banking services.

The yield curve has a sterling record as a recession predictor. Since 1970, every time the yield curve has inverted — in other words, every time long-term interest rates have fallen below short-term interest rates — the economy has slipped into recession within about a year.

We first checked in on the yield curve in January, after a period of notable flattening. In the time since, it's continued to flatten even more. It has not yet inverted, though it keeps inching closer.

Star Spangled Indicator

Jul 3, 2018

There's a joke in China, that the first people in the world to know that Donald Trump would win the presidency were the flag makers. The reason? People were ordering a lot more Trump flags than Clinton flags.

Flags can be a symbol of national pride, a patriotic rallying cry, but they can also tell us a lot about free trade and the global economy. Today on the show, we speak with the owner of a Chinese factory that makes American flags.

Inflation has climbed above the Federal Reserve's target of 2 percent. According to the Personal Consumption Expenditures price index, the Fed's preferred inflation measure, prices climbed by 2.3 percent in the year through the end of May.

The banking industry's stress tests were put in place after the financial crisis. They're basically hypothetical disaster scenarios designed to test the strength of the financial system

This year's test was arguably one of the toughest ever, and not every bank passed. But recent regulatory changes mean that for many banks, the stress tests could be getting a lot less stressful.

Copyright 2018 NPR. To see more, visit http://www.npr.org/.

NOEL KING, HOST:

Copyright 2018 NPR. To see more, visit http://www.npr.org/.

MARY LOUISE KELLY, HOST:

Sallie Krawcheck, formerly a senior Wall Street executive at Sanford Bernstein, Citigroup and Bank of America, recently founded Ellevest, an investing platform for women. We invited her to play a game of overrated/underrated and weigh in on everything from the gender pay gap to South Carolina barbecue to the scourge of the standing desk.

Note: This episode originally ran in 2016.

Pages