Reading List for May 12-14
This week brings us more economic data releases, including CPI and PPI, and a discussion of how the Fed considers these data. We also saw more woes in regional banking. Read on for that and more, and Happy Mother’s Day to all.
- CPI came out for April on Wednesday, indicating some cooling, and the markets reacted. (CNBC)
- Also out this week were wholesale prices (PPI), which showed a cool down as well, and unemployment claims inched up, which may indicate the economy is slowing down. (CBS interviews Jeanna Smialek of the NYT)
- This article is a very thoughtful explanation of the role of the data in Fed decision-making and the interaction of markets and the Fed, as well as some insight into how the Fed functions. Claudia Sahm takes you through the most recent press conference to illustrate her points. (Stay At Home Macro)
- In support of the message in the Stay At Home Macro article above, Fed Governor Michelle Bowman said in a recent speech that she will continue to monitor economic data to determine if the Fed’s now restrictive stance is “restrictive enough.” (Reuters)
- Banking regulations are due for a rewrite, and big banks like JP Morgan Chase may see a big increase in capital requirements. Other banks will see tougher standards as well in the wake of the regional banking issues. This article describes the possible changes and impacts. (WAPO-subscription may be required)
- PacWest is the latest regional bank to be heading south. It lost almost 10% of its deposits last week, and its shares dropped 23% in response. (Reuters)
- Diversification is a key component in our investing lessons. For a discussion of the role of international diversification, check out this article from A Wealth of Common Sense.
- Cyrptocurrency failures are presented graphically by Visual Capitalist.
- With student loan payments scheduled to restart, it is not clear the Department of Education will be able to handle the work with no budget increases from levels in place during the moratorium. (Inside Higher Ed)
- The pandemic saw a 4x increase in job postings that explicitly mention hybrid and remote work. (CEPR.org)
- The Pennsylvania senate passed a bill requiring personal finance classes for graduation. The bill now moves on to the house. GO PA! (WCCS)