What we’re reading (7/26)
“Federal Reserve Raises Interest Rates To 22-Year High” (Wall Street Journal). “Fed Chair Jerome Powell said it was too soon to tell whether the hike would conclude a series of increases aimed at cooling the economy and bringing down inflation. The central bank would decide whether to keep lifting rates based on how the economy fares in the months ahead, ‘with a particular focus on making progress on inflation,’ he said at a news conference.”
“Dow Rises For A 13th Straight Day, Posting Its Best Winning Streak Since 1987” (CNBC). “The Federal Reserve raised rates to their highest level in more than 22 years after passing through a much-anticipated quarter point hike at the conclusion of its meeting. However, Treasury yields slid after Fed Chief Jerome Powell suggested the central bank could pause again here.”
“A UPS Strike Would Have Been Worse Than You Think” (Vox). “Our reliance on delivery gave the Teamsters union a lot more leverage in UPS negotiations.”
“Hollywood's Wealth Disparity By The Numbers” (The Week). “Disney CEO Bob Iger made headlines after saying the demands of the strike were ‘unrealistic,’ resulting in significant backlash. In 2022, his contract gave him the possibility of earning up to $27 million with bonuses, according to an SEC disclosure. While this makes him one of the highest-paid Hollywood executives, Iger looks primed to make even more: He re-upped with Disney earlier this month, and could make ‘$31 million annually under the new terms, depending on his performance and the company's stock price,’ the Observer reported.”
“Welcome to Forked Lightning” (David Deming). “Do rich kids apply to Ivy-Plus colleges at higher rates? Are they admitted at higher rates? Or once admitted, are they more likely to accept the offer, perhaps because they don’t need financial aid? The answer is yes to all three, but it’s mostly admissions. We [Chetty, Deming, and Friedman] estimate that about 2/3 of the ‘extra’ rich kids at Ivy-Plus colleges are there because of preferential admissions practices.”
