U.S. Economic News
December 9, 2019
U.S. News
Nick Timiraos reports for the Wall Street Journal that in addition to there being less room today than in the past for the Fed to stimulate the economy by lowering its benchmark rate, the central bank’s unconventional tools used to spur growth during the last recession likely won’t be as impactful in the next downturn. Long-term interest rates, the ultimate target of bond purchases and forward guidance, are already so low that fiscal policy will have to play a much greater role in countering the next recession. WSJ
According to the New York Times, a new study found that nearly 25% of high-tech U.S. jobs are concentrated in just five metropolitan areas – Boston, Seattle, San Diego, San Francisco, and Silicon Valley. Unlike the manufacturing boom of the 20th century, low production costs and cheap labor are not enough to attract tech firms to economically depressed areas; rather, cutting-edge industries cluster in cities with highly-educated workers, sophisticated suppliers, and research institutions. NYT