What we’re reading (3/20)
“The Main Driver Of Inflation Isn't What You Think It Is” (Politico). “The Biden administration has struggled for months to allay Americans’ concerns about the highest inflation in four decades. But when it comes to the single biggest driver of runaway prices, Washington’s hands are mostly tied. Skyrocketing housing costs may create even bigger problems for the administration going forward than oil and food price spikes, which are the result of sudden and unforeseen — but probably temporary — events. That’s because there’s no clear end in sight for shelter inflation.”
“Older Americans, Flush With Housing And Stock Portfolio Wealth, Poised To Revive Spending This Year” (Wall Street Journal). “‘We have this big [older] demographic, their wealth went up tremendously these past two years,’ [Booth professor Constantine Yannelis] said, adding that with ‘much more available cash on hand, it’s quite likely they’re going to boost consumer spending, particularly on experiential categories they’ve not been able to patronize the last two years’ like restaurants and hotels.”
“Bill Gross Warns Fed Rate Rises Will ‘Crack The US Economy’” (Financial Times). “Bill Gross, the influential investor, has warned that even though the Federal Reserve started raising rates this week the US central bank will be unable to push through a planned series of further increases because doing so would ‘crack the economy’. The founder of investment house Pimco told the Financial Times this week he believes inflation is approaching troubling levels but the US central bank will not be able to implement higher policy rates to contain it.”
“The ‘Great Resignation’ Has Gone Global – And It’s Shaking Up The Labor Market For Good” (CNBC). “The term Great Resignation was coined in the United States, describing the tens of millions of Americans who changed jobs or quit working for good during the pandemic. According to the Organization for Economic Cooperation and Development (OECD) data, other developed economies are experiencing similar trends. There are about 20 million fewer jobs across the OECD’s 38 member countries than before the pandemic, while 14 million of these countries’ unemployed are not looking for work.”
“Blackstone Plans Fund For People With Millions Not Billions” (Bloomberg). “Dentists, surgeons and other suburban millionaires don’t loom large on the client rosters of buyout funds run by the most elite investment firms. But inside Blackstone Inc., plans are afoot to develop its first private equity fund targeting such individuals as part of a project codenamed ‘BXPE.’ The goal: build new war chests that would eventually gather tens of billions of dollars to invest in deals piped in from various Blackstone teams, according to people with familiar of the matter.”
