Publications

Laura Kusisto of the Wall Street Journal writes that some of the most popular places to live in the U.S. are suffering the most from the current shortage of new homes as residents resist new development. Builders face numerous hurdles such as restrictive zoning laws, the desire to preserve historic structures, and opposition from residents who believe that the new homes will add congestion to local neighborhoods. WSJ

The Financial Times reports that even as U.S. exports of crude oil have surged since the removal of the export ban in 2015, U.S. imports of crude oil have also grown. The majority of the increase in imports has come from Canadian oil, which is heavier than the light, sweet crude that is extracted from many of the U.S. shale plays. WSJ

According to the Wall Street Journal U.S. companies increased their contributions to employees’ 401(k) accounts in 2016 to 4.7% on average, up from 3.9% in 2015. Employers say that they need to spend more in order to retain the best workers while also ensuring that older, comparatively expensive workers have enough savings to retire on time to make way for relatively cheaper, younger workers. WSJ

According to the Washington Post, new analysis from labor economists at MIT and Utrecht University School of Economics concludes that robots and automation are unlikely to permanently eliminate jobs. The report shows that between 1970 and 2007, employment declines caused by productivity gains were usually followed by even stronger employment gains in other sectors of the economy. WaPo
 
The Wall Street Journal highlights a new report showing that video games increasingly explain the absence of able-bodied young men from the labor force. The authors conclude that the rise of video games explains 23-46% of the decline in work for young men during the 2000s, and that it will likely be difficult to reverse this behavior. WSJ
 
The Wall Street Journal reports that forecasters have lowered their expectations for economic growth, inflation, and interest rates amid the political gridlock gripping Congress. Congress still has yet to pass a budget, raise the debt ceiling, or enact various policy reforms for healthcare and taxes. WSJ

According to the Wall Street Journal, Federal Reserve Chairwoman Janet Yellen said that the Fed will need to continue gradually raising interest rates in order to sustain the current economic expansion, but that rates will not have to rise to levels seen in prior expansions. Yellen also stated that the Fed will begin shrinking its balance sheet if the economy continues to move in a positive direction. WSJ

Nick Timiraos of the Wall Street Journal writes that members of the Council of Economic Advisers under past presidents from both parties have warned against the current administration’s potential steel tariffs. The group of economists warned that steel tariffs would both harm the U.S. economy and relations with key trading partners such as Mexico, Canada, and Brazil. WSJ

The Financial Times reports that U.S. oil exports are expected to quadruple within three years and will exceed exports from most members of the Organization of Petroleum Exporting Countries (“OPEC”). Although U.S. exports have climbed steadily since the lifting of the export ban in 2015, the U.S. still imports roughly 8 million barrels of oil a day due to differences between the quality of American and foreign oil. FT

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely watched measure of labor market health, indicated there were 5.7 million job openings at the end of May, a decline from April.  Hires increased to 5.5 million and the quits rate was little changed at 2.2%.  BLS Report
 
The Wall Street Journal reports that President Trump will nominate Randal Quarles as the Federal Reserve’s top official in charge of regulating large banks. If confirmed, Quarles would also serve as a member of the Board of Governors, meaning he would vote on monetary policy decisions. WSJ
 
According to the Wall Street Journal, a new report from the International Energy Agency (“IEA”) largely attributes a global uptick in oil and gas field investments in 2017 to the resurgence of the U.S. shale industry.  IEA says that U.S. producers have focused on smaller, simpler projects as opposed to enormous megaprojects, which has allowed for exceptional productivity gains and ever-lower breakeven prices. WSJ