Publications

The Wall Street Journal reports that while many states hit record-low unemployment in June, eight still have not recovered from the recession due to population losses and long-term declines in major industries.  Although the U.S. labor market as a whole appears to be at or near full employment, the data highlight the uneven state of local labor markets across the country.  WSJ

According to the Wall Street Journal, U.S. college tuition is growing at the slowest pace in decades.  The authors attribute the trend to demographic shifts (e.g., lower birth rates and an aging population) that have reduced the pool of traditional college-age Americans.  They also cite a tightening labor market, which has resulted in fewer individuals going back to school. WSJ

According to the Wall Street Journal, a Federal Reserve-sponsored task force is releasing a report that identifies new ways to improve U.S. electronic payment transfer systems.  Many of the recommendations center around enabling the instant transfer of funds and bypassing some financial intermediaries, both of which can reduce processing costs. WSJ

The Washington Post reports that the share of Americans working past the traditional retirement age of 65 has reached a new high of 19% and is expected to continue rising.  Employers are reportedly offering older, experienced employees the option to work part time in order to retain their valuable skills even as they pass retirement age. WaPo

The Wall Street Journal reports that the International Monetary Fund (“IMF”) is failing to meet its own internal rules meant to encourage transparency.  IMF rules require that minutes be released within five years of most board meetings; however, IMF archives only have minutes through 2010, which has brought criticism from outside groups who wish to see more accountability for IMF decisions. WSJ

According to the Wall Street Journal, Chinese officials say that bilateral trade talks with the U.S. have been positive and that both parties were working together to narrow the U.S. trade deficit.  The officials said that the two sides would work together to boost U.S. service exports and to reduce excess industrial capacity in China, among other things. WSJ

According to the New York Times, the White House is taking a more pragmatic approach to corporate tax reform now that efforts to repeal and replace the Affordable Care Act are nearly dead.  In April, the White House proposed a 15 percent tax rate for corporations and small businesses, but is now considering a rate in the low 20 percent range — more consistent with the tax blueprint released by House Speaker Paul Ryan last year. NY Times

The Wall Street Journal reports that for the first time since late 2010, the lowest-earning Americans are experiencing the fastest annual growth in weekly pay. The authors attribute this to a broad tightening of the labor market, increased demand for workers in specific fields such as dining and entertainment, and (to a lesser extent) rising minimum wages in many states and cities. WSJ

According to the Wall Street Journal, the Federal Reserve is unlikely to raise short-term interest rates at its policy meeting next week.  A 4.4% unemployment rate would typically encourage the Fed to lift rates in order to prevent the economy from overheating; however, inflationary weakness appears more persistent than before, which may lead the Fed to keep borrowing costs low in order to strengthen price pressures. WSJ

The Wall Street Journal reports that many U.S. retailers are beginning to employ robots do to jobs that previously could not be automated.  Researchers say that tasks such as checking customers out, delivering purchased goods, and suggesting new products to customers are particularly vulnerable in coming years.  WSJ

According to the Wall Street Journal, insurance companies are facing new uncertainties this week after Republicans failed to secure enough votes to move ahead with healthcare reform. While it appears as though the Affordable Care Act will remain in place this year, insurers are unsure as to how key elements of the law will be enforced under the current administration. WSJ

Richard Rubin of the Wall Street Journal writes that after failing to pass comprehensive health care reform, Republicans in Congress plan to move on to tax reform. The House Budget Committee plans to release a 2018 budget resolution this week to initiate the tax reform process, which may receive more bipartisan support than the attempt at healthcare reform. WSJ

The Wall Street Journal reports that the Trump administration has released its blueprint for renegotiating the North American Free Trade Agreement (“NAFTA”).  The outline includes provisions to reduce the U.S. trade deficit with Canada and Mexico, as well as a proposal to prevent countries from manipulating their currencies for trade advantages. WSJ

According to the Washington Post, U.S. corporations are increasingly relocating their headquarters from traditional, suburban areas to metropolitan areas.  The shift away from suburban areas has been driven in part by the desire of young corporate workers to live in downtown areas of large cities, which may prove problematic for the economies of the small towns that these corporations are leaving. WaPo

The New York Times reports that California is a prime example of the housing shortage gripping many areas of the nation.  Factors such as restrictive zoning regulations, capped property taxes, and exceedingly high demand for new homes have come together to make housing increasingly unaffordable for many people. NYT