What we’re reading (7/13)
“Inflation Expectations Surge, Hitting New High For New York Fed Survey” (CNBC). “Despite the Federal Reserve’s assurance that current inflation pressures won’t last, consumers see things differently, according to a survey Monday from the central bank’s New York district. The June Survey of Consumer Expectations showed that median inflation expectations over the next 12 months jumped to 4.8%, a 0.8 percentage point rise from May and the highest reading in history for a series that goes back to 2013.”
“Inflation Threat May Be Boosted By Changes In Globalization, Demographics And E-Commerce” (Wall Street Journal). “For the past few decades, the Federal Reserve has succeeded in keeping inflation low—perhaps too low. It had an assist: Shifts in the global economy, including globalization, demographics and the rise of e-commerce, helped keep prices in check. Some economists say these so-called secular forces have begun to reverse in ways that the pandemic has intensified.”
“Inflation Is Rising But The Reasons Why Are Changing” (CNN Business). “Before the pandemic, inflation — which the Federal Reserve would like to have around 2% — had been stuck near rock bottom for years. Now, the Fed finds itself striking an increasingly difficult balance between supporting the recovery through ample stimulus while keeping inflation in check. As the recovery gathers steam, the items that are driving inflation up are changing. For example, people are spending more money dining out as pandemic restrictions are lifted, while the return to offices is prompting a work wardrobe refresh.”
“Investment In Fintech Booms As Upstarts Go Mainstream” (The Economist). “An air of hype habitually surrounds the founders of startups and their venture-capital backers: everyone is an evangelist for their latest project. But even allowing for that zeal, something astonishing is going on in fintech. Much more money is pouring into it than usual. In the second quarter of the year alone it attracted $34bn in venture-capital funding, a record, reckons CB Insights, a data provider...[o]ne in every five dollars invested by venture capital this year has gone into fintech.”
“Do People Want Their Pre-Pandemic Freedom Back?” (Reason). “When it comes to insanely restrictive (and, arguably, ineffective) pandemic measures, critics tend to point the finger at public officials and their appetite for power. But government functionaries may be no more of a danger to post-COVID freedom than some of our neighbors. Recent polling suggests that many among us not only approve of the lockdowns of the past year and foresee public health restrictions continuing into the indefinite future, but they also want the world to remain constrained by efforts to prevent illness—or maybe just constrained, and never mind the reason.”
