Publications

The Wall Street Journal reports that Dallas Fed President Robert Kaplan says he sees the Fed raising interest rates two more times this year. Kaplan also said that the pace of rate hikes could slow in coming years because of moderating growth in 2019 and 2020. WSJ

According to Laura Kusisto and Christina Rexrode of the Wall Street Journal, high home prices are pushing Americans deeper into debt. Data show that roughly 20% of Americans who recently took out a mortgage have debt-to-income ratios above 45%, the highest level since the Great Recession and a sign that this spring may be the weakest selling season in years. WSJ

According to the Wall Street Journal, the White House is looking for ways to rescind some of the expenditures authorized by the recent $1.3 trillion spending bill. President Trump’s administration aims to use the Impoundment Control Act of 1974 to cut certain funding, which would allow for a simple majority vote as opposed to a supermajority of 60 votes in the Senate. WSJ

Gillian Tett of the Financial Times writes that despite widespread fears of driverless vehicles destroying trucking jobs, the reality is that there is currently a dire shortage of truck drivers. While automated vehicles may be a longer-term threat, the rapid rise in online shopping and a historically tight labor market have pushed trucking capacity utilization to nearly 100%. FT

According to the Financial Times, the Trump administration is considering new tariffs on $100 billion of Chinese goods. The administration says that the tariffs would be in response to China’s recent retaliatory tariffs on roughly $50 billion of U.S. goods, which have been seen by some as the opening shots in a trade war. FT

The Wall Street Journal reports that China has vowed to “hit back forcefully” after President Trump announced that he is considering tariffs on a further $100 billion of Chinese imports. Although U.S. officials have said that there are bilateral talks occurring, Chinese officials completely denied that any talks were happening that may help avoid escalation. WSJ

Eric Morath of the Wall Street Journal writes that a new study by the University of Chicago found that recently-imposed trade barriers are unlikely to bring back many U.S. blue-collar jobs. The study reports that while tariffs may boost output for some domestic manufacturers, competition from China and other low-cost producers pushed the manufacturing sector to replace many lower-skilled workers with technology over the past two decades, a shift that is difficult to undo. WSJ

The Wall Street Journal reports that a growing share of apartment renters have no interest in owning a home as worsening affordability and rising mortgage rates pressure markets. Survey results show that 20% of apartment renters have no interest in owning a home, up from 17% in August and 13% in 2016. WSJ

According to the Wall Street Journal, China has announced retaliatory tariffs on roughly $50 billion of American goods, including soybeans, cars, and planes. The actions come in response to recently-announced U.S. tariffs on Chinese imports that U.S. officials say are driven by unfair trade practices in China, including forced technology transfer and intellectual property theft. WSJ