Other Inflation Threats-POLITICO

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The largest single driver at a high price. Soaring oil prices, Russia’s invasion of Ukraine, continued supply chain turmoil — there is a new crisis that causes inflation every time it improves. However, the biggest factor in rising prices is rising housing costs, which is a more unmanageable problem.

Shelter accounts for one-third of the consumer price index and Rising shelter inflation gauges usually lag behind rising house prices by about 16 months. According to an analysis by the Council of Economic Advisers.. Therefore, if that trend continues, it means that the 18.8% annual increase in home prices recorded by the Case-Shiller Index in December will not appear in the CPI until April 2023. Therefore, inflation headlines can get worse before they get better. As HUD Secretary Mercia Fudge said at this month’s event, “If you don’t deal with housing, you’ll never deal with inflation.”

But Washington’s hands are mostly tied.. The country is in the midst of a historic supply shortage after years of stagnant construction triggered by the collapse of housing in 2008. However, efforts to increase inventories (especially in places where people want to live in abundant jobs) run into regional regulatory hurdles — restrictive zoning rules and land-use policies, costly licensing processes — built. House’s.

A typical home is now worth 32 percent more than in 2020 According to, 20 percent more than last year New report from Zillow.. More striking statistics from the report: Home inventories for sale are less than half of what they were before the pandemic, with average rents rising by $ 283 per month, or about $ 3,400 per year.

A little relief on the horizon: Construction log jams continue, but housing starts are on track. This is the main point from the new housing construction report released yesterday by the census.New housing construction Rise in February A bright place as builders compete to meet demand, to the highest level since 2006. Demand may ease somewhat as mortgage rates rise. According to Freddie Mac, the average interest rate on 30-year fixed-rate mortgages this week has exceeded 4% for the first time since May 2019. But economists say that’s not enough to change the course of this year’s price hike. Click here for details on MM host..

It’s friday — Go to the heel — it was close. Kate Davidson will be back in your inbox on Monday!Please send a hint to her in her [email protected] Also @KateDavidsonAnd to Aubree Eliza Weaver [email protected] Also @AubreeEWeaver..And you can contact me [email protected]..

ICYMI: Rethinking How to Evaluate Bank Mergers — In a new article published by the Brookings Institution this week, former Fed President Daniel Tarullo said: The first thing we need is an analysis by the dynamics agencies of the financial services industry. This allows you to better assess a particular bank merger application, not just where the industry is heading, but where it is heading. “

The end of globalization? —Peterson Institute for International Economics President Adam Posen wrote to the Ministry of Foreign Affairs about two trends that have eroded globalization over the last two decades. Second, Beijing’s challenge to a rule-based international economic system and long-standing security agreements in Asia has prompted the West to build barriers to China’s economic integration. Russia’s aggression and consequent sanctions will exacerbate this erosion. “

New fund targets the most volatile large companies — Bloomberg’s Emily Graphio: “For investors looking for the biggest drama on the US stock market, new exchange-traded funds are aimed only at the largest and most volatile companies. Volatility Shares will be available late Wednesday. We applied for an ETF and tracked the S & P 500 Volatility – Highest Quintile Index, which is the most volatile 100 equity gauge in the US stock benchmark. The index has fallen 1.5% year-to-date and S & P It is above the 8.1% drop in 500. “

Business groups are in a hurry to save tax deductions on global transactions — From Aaron Lorenzo: “Business groups are putting pressure on the Biden administration to ensure that new global tax transactions do not undermine important tax incentives for member companies.“ We are telling the Treasury. We urge you to negotiate amendments to the OECD model rules that fully maintain the value of these important, bipartisan and long-standing tax incentives, “said a group of industry groups representing major U.S. companies. According to a draft letter obtained by POLITICO, a plan to urge Treasury Secretary Janet Yellen. “

Home approves bill to suspend trade with Russia — From Gavin Bade: “The House of Representatives voted on Thursday to revoke normal trade relations between Russia and its ally Belarus until 2024, but the Senate’s actions could be delayed due to protracted issues over Russia’s oil import ban. There is a possibility … The US trade representative has pressured other countries to revoke the trade privileges of Russia and Belarus, stopped Russia’s participation in the world trade agency, and Belarus, which has supported Russia’s invasion of Ukraine, is the world. It demands that it be prevented from becoming a full member of the trading institution.

U.S. antitrust law enforcement agencies do not object to Amazon’s MGM transaction — From Leah Nylen: “The Federal Trade Commission will not object to Amazon’s acquisition of MGM Studios after the agency’s commissioner splits in a proceeding,” said three people familiar with the situation. .. The decision not to file a proceeding without voting on this issue was the monopoly of FTC chairman Lina Khan, an Amazon critic who was urged by fellow anti-monopoly to prevent online giants from buying renowned movies. It’s a big setback on the agenda of antitrust law. And a TV studio. “

Some cipher updates from our Samsung:

Airdrop — Thursday Senate Budget Committee Hearing about the use of digital assets for illegal activities Senator Elizabeth Warren has overshadowed the submission of a bill aimed at strengthening the federal government’s ability to target cryptocurrency exchanges and digital wallets. The Massachusetts Democratic Party’s bill, which began last week, includes wording that gives the Treasury more power to prevent US crypto exchanges and service providers from trading with Russian addresses. It also allows the president to impose secondary sanctions on crypto companies that are found to have supported sanctioned companies. US taxpayers are required to report offshore crypto transactions in excess of $ 10,000.

Warren’s position on cryptocurrencies Conflict with some young members Her party’s support for her latest efforts implements a range of ideologies within the caucuses.The other three sponsors Democratic feeling. Mark Warner Virginia, Jack Reed With Rhode Island John Tester Of Montana. Co-sponsors include Sens. Tammy Duckworth (D-Ill.), Debbie Stabenow (D-Mich.), Raphael Warnock (D-Ga.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Catherine Cortez Mast (D-Nev.) And Bob Menendez (DN.J.). Republicans have not signed the bill.

suffice it to say, Early reviews from the crypto lobby aren’t exactly shining.Coin Center Jerry Burrito and Peter Van Valkenburgh Publish blog Shortly thereafter, he called the bill “dangerously overkill and opportunistic,” and said it “may enhance the Russian government’s ability to isolate and control people in borders who do not support war.” This was repeated at a hearing on Thursday when President Michael Chobanian of the Ukrainian Blockchain Association argued that a full-scale blockade of Russia’s digital wallet could disrupt domestic opposition. (In particular, the Ukrainian exchange established by Chobanian stopped trading in Russian rubles early in the conflict).

Raise Hudson — The Blockchain Association announced Thursday that it used former Internet Association government affairs professional Jon Olsen to lead lobbying in Albany, NY. New York has developed one of the more sophisticated state-level regulatory systems for cryptocurrencies, but industry leaders have criticized its bit licenses for a tedious and slow program.Bloomberg is a crypto company as New York City Mayor Eric Adams emerges as a cheerleader in the voice of digital assets. Staffing on their government work efforts Hoping to shape the reforms. “The New York state regulatory framework has immeasurable implications for the future of our ecosystem. State policymaking to guide regulations that drive unprecedented growth through Albany-based offices. You can build relationships with others and start working in the field for the crypto industry, “said Kristin Smith, executive director of the Blockchain Association, in a statement.

No evidence of major Russian sanctions, Cryptographic experts say — Bloomberg’s Matt Robinson: “A panel of cryptocurrency experts to avoid sanctions imposed by the United States and its European allies on Russian organizations and individuals, including President Vladimir Putin, following the invasion of Ukraine. “I haven’t seen any evidence that Russia or Putin are systematically using cryptocurrencies to circumvent sanctions,” said a lawmaker who said it didn’t seem to be a successful tool. Chainalysis Inc, a blockchain analysis company that sells to the government. Co-founder Jonathan Levin told the Senate Banking Commission on Thursday. “

Federal Reserve raises double-yen valuation — WSJ’s Peter Rudegeair: “The Fed’s decision to start raising rates has a surprising beneficiary. It’s a cryptocurrency startup. The new rate outlook is that crypto company Circle Internet Financial Limited has a special acquisition company. It helped raise the valuation of the pending merger to $ 9 billion. Circle issues so-called stable coins called USD Coin or USDC, which are fixed to the US dollar and therefore cryptocurrencies. It’s a popular way to buy. “

Other Inflation Threats-POLITICO

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