What we’re reading (2/4)
“Powell Insists The Fed Will Move Carefully On Rate Cuts, With Probably Fewer Than The Market Expects” (CNBC). “Federal Reserve Chair Jerome Powell vowed in an interview aired Sunday that the central bank will proceed carefully with interest rate cuts this year and likely will move at a considerably slower pace than the market expects. In a wide-ranging interview with ‘60 Minutes’ after last week’s Federal Open Market Committee meeting, Powell expressed confidence in the economy, promised he wouldn’t be swayed by this year’s presidential election, and said the pain he feared from rate hikes never really materialized.”
“Our Economy Isn’t ‘Goldilocks.’ It’s Better.” (Paul Krugman New York Times). “I believe that the risk of an economic slowdown is much higher than that of resurgent inflation and that rate cuts should come sooner rather than later. But that’s not the kind of argument that’s going to be settled on the opinion pages. What I want to talk about, instead, is what the good economic news says about policy and politics.”
“Week Of Whipsawing Treasurys Casts Doubt On Soft-Landing Trade” (Wall Street Journal). “The strongest U.S. jobs report in a year has dented investors’ hopes that the Federal Reserve will drastically slash interest rates this year, the latest reversal for those betting the economy is on track to achieve a soft landing.”
“Number Of Companies Going Bust Hits 30-Year High” (BBC). “The number of companies that went bust last year in England and Wales hit a 30-year high, according to the latest figures. More than 25,000 company insolvencies were registered in 2023, the highest number since 1993, as firms struggled with rising costs and interest rates. Companies faced higher energy bills, while consumer spending was squeezed by the cost of living crisis. The new figures show one in 186 active firms went bust in 2023.”
“This Ancient Material Is Displacing Plastics And Creating A Billion-Dollar Industry” (Washington Post). “[C]ork is experiencing a revival as more industries look for sustainable alternatives to plastic and other materials derived from fossil fuels. The bark is now used for flooring and furniture, to make shoes and clothes and as insulation in homes and electric cars. Portugal’s exports reached an all-time high of 670 million euro ($728 million) in the first half of 2023. But cork is more than a trendy green material. In addition to jobs, the forests where it grows provide food and shelter for animals, all while sequestering carbon dioxide. And unlike most trees grown commercially, cork oaks are never cut down, meaning their carbon storage capacity continues through the 200 years or more they live.”
