Publications

Kenneth R. Harney of the Washington Post writes that the supply of homes for sale in the U.S. has reached critically low levels. Many homeowners who want to sell their homes and move face the inability to find an affordable new home, rising mortgage rates, and competition from investors who wish to convert homes into rental units. WaPo

The Wall Street Journal reports that workers in Idaho lead the nation in earnings growth , as earnings expanded 5.3% over the course of 2017. Idaho’s unemployment rate remains at 3%, well below the national average of 4.1%, which has been forcing employers to offer higher wages and better benefits in order to attract or retain workers. WSJ

The Wall Street Journal reports that refinancings made up only 37% of mortgage originations in 2017 — down from 72% in 2012 and the lowest rate in over two decades. The sharp decline in refinancing activity has proved a drag on the U.S. housing market amid rising interest rates, as new mortgage originations have failed to make up for weak growth, resulting in a 12% overall decline in mortgage activity. WSJ

According to Richard Rubin of the Wall Street Journal, a new tax targeting overseas income earned by American technology and pharmaceutical firms may inadvertently fall on other industries operating in high-tax foreign locations. Rubin points to American railroad company Kansas City Southern, which expects to pay this tax, as an example of an unintended payer of the tax on foreign earnings due to certain quirks of the new tax code. WSJ

Nick Timiraos of the Wall Street Journal writes that San Francisco Fed President John Williams is set to become the President of the New York Federal Reserve Bank. Williams, who has a Ph.D. in economics and is responsible for key research on monetary policy, is seen as a complement to new FOMC chair Jerome Powell, who has extensive financial market experience but is not a traditional economist. WSJ

The Wall Street Journal reports that President Trump says he may veto the spending bill passed by Congress overnight, potentially leading to a government shutdown. The President says that the spending bill does not do enough for his proposed border wall and does not address the DACA program. WSJ

According to the Wall Street Journal, China has announced tariffs on $3 billion of U.S. imports just after President Trump announced a plan to raise tariffs on $60 billion of Chinese goods.  The Chinese Commerce Ministry says that their actions are in response to new U.S. tariffs on steel and aluminum that took effect on Friday amid sharp declines in stock markets around the world. WSJ

Greg Ip of the Wall Street Journal writes that in an effort to stave off inflation, the Federal Reserve will attempt to guide unemployment up over the next few years without causing a recession. The combination of tax cuts, increasing federal spending, and synchronized global growth could cause the U.S. economy to overheat, which would require more aggressive responses from the Fed that could easily drive the economy into a recession. WSJ

The Wall Street Journal reports that U.S. manufacturers are seeking exemptions from the new steel and aluminum tariffs. While certain industries have sought blanket exemptions, the Commerce Department says that exemptions would only be granted to specific companies or products, not trade groups or associations. WSJ

The Wall Street Journal reports that Congressional leaders say that they are nearing a deal to fund the Federal government through October. Lawmakers remain at odds over certain topics such as immigration and infrastructure, which may drive dealmakers to pass a short-term bill to give Congress more time to negotiate. WSJ

Bob Davis of the Wall Street Journal writes that the White House is planning to limit Chinese firms’ ability to acquire advanced U.S. technology and invest in U.S. firms. The actions are in response to alleged Chinese intellectual property theft from U.S. firms operating in China. WSJ