What we’re reading (5/30)
“U.S. Manufacturers Blame Tariffs For Swelling Inflation” (Wall Street Journal). “Economists and policy makers are debating whether stimulus spending and easy monetary policy are fueling inflation. Many businesses say there is another culprit that should share the blame: import tariffs. The Trump administration implemented tariffs on products including lumber, steel and semiconductors to shield American companies from a glut of cheap imported products from China and other countries. The tariffs have long been opposed by U.S. companies that import the goods and pay the levies. They are making a new push for the Biden administration to lift them, on grounds that tariffs contribute to rising prices and product shortages that are accompanying the post-pandemic recovery.”
“Larry, Larry Quite Contrary” (Politico). “[S]ome administration officials have quietly wondered if [Larry] Summers was right about the rescue package being too big. While many outside economists back Biden’s approach, others also say Summers represents a silent minority of center-left economists who would speak out more if not for fear of crossing the White House. ‘A lot of what he's saying is what everyone is saying over coffee and whispering,’ said one prominent economist who proved the point by only saying so anonymously. ‘He’s an outlier in the public debate because the people that have megaphones aren't saying this on the Democratic side, but he's well within a consensus view in the economics profession.’”
“Here Are The Next Media Mergers That Make The Most Sense” (CNBC). “AT&T’s decision to merge WarnerMedia with Discovery and Amazon’s $8.45 billion acquisition of MGM Studios has kicked off another round of media consolidation. The last significant set of mergers brought Discovery and Scripps together, AT&T and Time Warner, Comcast and Sky, Viacom and CBS, and Disney with most of Fox. Given all of those deals, there are fewer companies remaining to find dance partners. But there’s also added pressure on companies like NBCUniversal and ViacomCBS, who have global streaming video aspirations, to add more content.”
“Bank of America's Mortgage Bankers Are Quitting In Frustration Over Call Quotas, Cross-Selling Mandates, And A New Compensation Scheme That Shortchanges Top Producers” (Business Insider). “Bank of America is facing an exodus in its mortgage business. Dozens of people have quit this year, according to four current and former mortgage bankers, with two of them suggesting the resignations have now climbed above 100. More departures are expected at the end of June, when the bank pays out its next quarterly bonuses, one of the people, who has spoken with colleagues about it, said.”
“‘Real Compromise’ On U.S. Infrastructure Bill Possible—Republican Senator” (Reuters). “Negotiations with U.S. President Joe Biden over a potentially massive infrastructure investment package are inching forward even though disagreements remain over the size and scope of such legislation, Republican Senator Shelley Moore Capito said on Sunday.”
