What we’re reading (6/10)
“World Bank Sees U.S. Growth Rate Halving As Tariffs Slow Global Economy” (Wall Street Journal). “Economic growth in the U.S. might halve this year as a result of President Trump’s tariff policies, while the global economy is set to suffer a more modest, but still significant, slowdown, the World Bank said Tuesday. The Washington, D.C.-based development bank said it expects the world’s largest economy to grow by just 1.4% in 2025, a sharp deceleration from the 2.8% expansion recorded in 2024. In its January report on the outlook for the global economy, the World Bank forecast a 2.3% increase in U.S. gross domestic product.”
“o3 pro” (Marginal Revolution). “It is very, very good. Hallucinates far less than other models. Can solve economics problems that o3 cannot. It can be slow, but that is what we have Twitter scrolling for, right? While we are waiting for o3 pro to answer a query we can read about…o3 pro.”
“Moody’s Flags Risks From Retail Investors’ Push Into Private Credit” (Reuters). “The rapid growth in retail investors, who put their money into private markets, could create liquidity and asset quality risks, Moody's Ratings warned on Tuesday, highlighting potential vulnerabilities within the private credit sector. The rush to court ‘Main Street’ investors is transforming the traditionally institutional world of private credit, with asset managers launching new funds tailored to retail demand.”
“Traders Boost Bets On Just One 2025 Fed Cut Ahead Of CPI Data” (Yahoo! Finance). “Traders are increasingly betting that the Federal Reserve will cut interest rates only once this year amid signs of resilient growth and sticky inflation. Wednesday brings US consumer-price data for May, which is forecast to show a pickup that may reinforce the Fed’s wait-and-see stance toward further easing as it assesses the impact of tariffs. The central bank is widely projected to hold rates steady next week, and futures and options tracking expectations for its policy path show traders are moving to unwind the rate-cut premium built into the months ahead.”
“How Far Should Apple Go To Catch Up On A.I.?” (DealBook). “Should Apple open up its wallet? Apple’s annual developers conference has usually been a must-watch event for what it revealed about the iPhone giant’s plans. But this year’s event has been more notable for what it didn’t focus on: advancements in artificial intelligence tools. For skeptics, it only underscores Apple’s weakness in the fast-growing technology, and raises the question of whether the company needs to follow rivals like Meta and make a splashy purchase to keep up.”
