What we’re reading (7/26)
“A Key Gauge Of Future Inflation Is Easing” (Wall Street Journal). “One of the most important signals of future inflation has begun to ease in the past month, a development that should reassure the Federal Reserve in its prediction that the recent inflation surge will prove largely temporary. That signal is so-called inflation expectations: what businesses, consumers, workers and investors expect inflation to be over the next one to 10 years. Because such expectations can be self-fulfilling, economists consider them key to where inflation is going.”
“As Food Prices Soar, Big Agriculture Is Having A Field Day” (The Economist). “Trouble is brewing in America. The reopening economy’s hunger for goods from China, and for the containers that carry them, has left importers of coffee, of which the average American guzzles two cups a day, struggling to ship the stuff from Brazil. They are using whatever they can get, says Janine Mansour of Port of New Orleans, where much of America’s raw coffee lands. That includes much bigger boxes, which reach maximum allowed weight before they are full. Importing part-empty containers adds extra costs, Ms Mansour says, and these will ultimately be swallowed by consumers.”
“Will The Economy Turn?” (Charles Schwab). “Although the growth rate may slow, U.S. economic growth remains high on level terms, and in our view that is likely to continue. However, this year’s swings between cyclicals and defensives, value and growth, and international and U.S. stocks exemplify the importance of holding a diversified portfolio to help reduce overall portfolio volatility.”
“Delays, More Masks And Mandatory Shots: Virus Surge Disrupts Office-Return Plans” (New York Times). “When companies began announcing tentative return-to-office plans this spring, there was a sense of optimism behind the messages. Covid cases were dwindling in the United States as the vaccine rollout picked up pace. Employers largely hoped their workers would get shots on their own, motivated by raffle tickets, paid time off and other perks, if not by the consensus of the medical community. In recent days, that tone has suddenly shifted.”
“Bitcoin, Dogecoin And Ethereum Are Suddenly Having Another Great Week” (CNN Business). “Cryptocurrencies rallied Monday, just a week after they were hit by a major sell-off. As of 4:45 a.m. ET on Monday, bitcoin, ethereum and dogecoin had soared 10%, 7.3% and 11%, respectively, over the past 24 hours, according to data from CoinDesk. Bitcoin climbed to a six-week high of nearly $38,133, while ethereum reached $2,330. Dogecoin was last trading at about 20 cents per coin, giving it a $28.8 billion market cap. The surge came as major tech giants have signaled — or appeared to signal — their support for digital currencies through last week.”
