What we’re reading (8/20)
“Interest Rate Jitters Sink The Heavyweights Of Tech” (New York Times). “In the span of a month, the bottom has dropped out of the bull-market rally as investors have come to grips with the prospect of “higher for longer” interest rates worldwide. The sell-off in global stocks and bonds picked up steam on Thursday. And weary market watchers will be looking for more hints on the Fed’s view at next week’s Jackson Hole summit of central bankers and policymakers.”
“Why the Era of Historically Low Interest Rates Could Be Over” (Wall Street Journal). “Despite the Federal Reserve’s raising interest rates to a 22-year high, the economy remains surprisingly resilient, with estimates putting third-quarter growth on pace to easily exceed its 2% trend. It is one of the factors leading some economists to question whether rates will ever return to the lower levels that prevailed before 2020 even if inflation returns to the Fed’s 2% target over the next few years.”
“The US Mall Is Not Dying” (CNN Business). “Retail experts have long sounded the alarm on malls in the US. But malls are not going extinct, they are merely adapting to a new environment. In fact, many have reported robust occupancy levels and bigger crowds than before the pandemic, according to a recent market analysis from Coresight Research.”
“Have Airlines Gone Too Far With Their Extra Fees?” (BBC). “Airlines say that by ‘unbundling’ extras such as food and drink or cabin baggage from the ticket price, travellers get more choice and cheaper fares overall.”
“Nvidia Reports Earnings, Fed Gathers In Jackson Hole: What To Know This Week” (Yahoo! Finance). “Powell’s commentary [at Jackson Hole this week] on the path forward for interest rates, the overall state of the economy, and any suggestion inflation pressures are prompting a rethink of the Fed's current goals will be in focus.”
