What we’re reading (8/29)
“Stocks End Lower, Yields Rise After Powell’s Hawkish Remarks” (Wall Street Journal). “U.S. Treasury yields climbed Monday as a selloff in government bonds gathered pace, highlighting investor unease at the likely impact of the Federal Reserve’s promise to hold the line against inflation. The yield on the two-year Treasury note, which is more sensitive to near-term Fed policy expectations, rose to 3.427% from 3.391% Friday.”
“Dollar Sags Below 20-Year Peak As Euro Lifted By ECB Bets” (Reuters). “The dollar languished on Tuesday after being beaten back from a two-decade high versus major peers by a reinvigorated euro. The tables turned for the two currencies as traders began ramping up bets for a super-sized 75 basis-point rate hike by the European Central Bank, while paring the odds for one by the U.S. Federal Reserve.”
“You Want An Electric Car With A 300-Mile Range? When Was The Last Time You Drove 300 Miles?” (New York Times). “Rather than unleashing a mass market of affordable E.V.s, more than a decade of subsidies favoring large batteries has created an overheated market for premium E.V.s. A serious electrification policy will have to be tailored to the way we actually drive, not the way we think we do.”
“Home Sale Cancellations Rise In ‘Remarkably Uncertain Time’ For Market: Redfin CEO” (New York Post). “RedFin CEO Glenn Kelman noted housing demand plummeted because buyers were ‘absolutely freaked out’ in May and June as the Federal Reserve’s sharp interest rate hikes prompted an increase in mortgage rates.”
“Boomerang College Kids: Unemployment, Job Mismatch And Coresidence” (Albanesi, et al., NBER Working Paper). “Labor market outcomes for young college graduates have deteriorated substantially in the last twenty five years…Our hypothesis is that the declining availability of ‘matched jobs’ that require a college degree is a key factor behind these developments. Using a structurally estimated model of child-parent decisions, in which coresidence improves college graduates' quality of job matches, we find that lower matched job arrival rates explain two thirds of the rise in unemployment and coresidence between the 2013 and 1996 graduation cohorts.”
