Publications

The Wall Street Journal reports that the U.S. savings rate fell to a 10-year low of 3.1% in September as Americans purchased more big-ticket items like cars and appliances. While experts say that this is a sign of confidence in consumers, the low savings rate could pose a problem in the event of an economic downturn. WSJ

Harriet Torry of the Wall Street Journal writes that inflation remains well below the Fed’s target of 2%, creating a conundrum for policymakers. Some Fed officials have said that they should raise rates to keep the economy from overheating when inflation does pick up, while others have argued that the Fed should wait to see evidence of rising inflation before raising rates. WSJ

In a Wall Street Journal op-ed Joe Ricketts argues that community banks have become unnecessarily burdened with post-crisis regulations, harming their ability to lend to entrepreneurs. Ricketts contends that smaller community banks should be subject to different regulations than larger financial institutions to ensure that community banks are able to lend more freely. WSJ

The Wall Street Journal reports that The National Association of Homebuilders (“NAHB”) will oppose the House Republicans’ tax bill because the bill eliminates the deduction for mortgage interest payments. The NAHB says that the bill will be harmful to the housing sector, as it will weaken the incentive to own a home, thereby adversely affecting home prices. WSJ

According to the Wall Street Journal President Trump is likely to name Federal Reserve Governor Jerome Powell as the replacement for current Fed chair Janet Yellen. If nominated and confirmed, Powell would take the chair position in February 2018, though President Trump has still left open the possibility of nominating Yellen for another term. WSJ

The Wall Street Journal reports that the House of Representatives narrowly voted to adopt the Senate budget for fiscal year 2018, clearing another hurdle for tax reform. The House Ways and Means Committee now expects to release its tax reform bill by this coming Wednesday in hopes of having a bill on the president’s desk by the end of the year. WSJ

According to the Washington Post, Congressional Republicans still have not yet resolved critical points of disagreement on their tax reform plan. Key sticking points include the treatment of 401(k) plans, the deduction of state and local taxes, and expansion of the child-care tax credit. WaPo

Greg Ip of the Wall Street Journal reports that the Trump administration continues to roll back regulations in order to promote innovation and entrepreneurship. Ip writes that changes to pharmaceutical and telecom regulations should help to speed the development of new drugs and expand broadband access across the country. WSJ

Laura Kusisto of the Wall Street Journal reports that 76% of renters believe that renting is cheaper than owning a home, up from 65% a year ago. Kusisto argues that this may explain lagging homeownership rates since the recession, as young people increasingly put off purchasing a home due to skyrocketing prices. WSJ

The Washington Post reports that House Ways and Means Committee Chair Kevin Brady says that there could in fact be changes to 401(k) retirement plans in the GOP tax reform effort. Brady also said that individuals are saving too little for retirement and that tax reform may create new incentives to save. WaPo