Rising Sea Levels

Where seas are rising at alarming speed
https://www.washingtonpost.com/climate-environment/interactive/2024/southern-us-sea-level-rise-risk-cities/
Seas in the Southern United States have risen dramatically since 2010. The extra water has upended life — flooding homes, choking septic systems and deluging roads. 

State of Crypto

The State of Crypto Is Anything but Strong
https://www.bloomberg.com/news/features/2024-05-02/crypto-is-anything-but-strong-right-now
Industry boosters say they’ve learned their lessons from the last crash, but regulators need to move faster to protect a new wave of mainstream investors from the same old story. 

Inflation and Interest Rates - Muddled Outlook

Stalled Inflation Vexes the Fed. Is It Noise or a New Trend?
https://www.wsj.com/economy/central-banking/stalled-inflation-vexes-the-fed-is-it-noise-or-a-new-trend-dd381d2f
The fundamentals suggest inflation should still be headed down, but the Fed isn’t betting on that.
 
The Treasurys Market Is Getting Squeezed from All Sides
https://www.wsj.com/economy/central-banking/the-treasurys-market-is-getting-squeezed-from-all-sides-ab33d612
Inflation and deficits are lifting yields and jarring the stock market. 

Bank Failures and Treatment of Uninsured Depositors

When Banks Fail, Why Do We Keep Bailing Out Uninsured Depositors?

https://www.nytimes.com/2024/05/01/opinion/fdic-insurance-banks.html

 

Why Have Uninsured Depositors Become De Facto Insured?

http://dx.doi.org/10.2139/ssrn.4624095  

Related:

Why Banks These Days Are So Excited About Being Boring
https://www.bloomberg.com/news/articles/2024-05-02/why-banks-these-days-want-you-to-think-they-re-boring

A year after SVB’s failure, regional lenders have embraced stodginess as a virtue.  

FOMC Statement – May 1, 2024

FOMC statement:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20240501a.htm
Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee's 2 percent inflation objective.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage‑backed securities at $35 billion and will reinvest any principal payments in excess of this cap into Treasury securities. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
 
Related:
The Fed Won’t Climb Down Yet. Others Can’t Wait
https://www.bloomberg.com/opinion/articles/2024-05-01/rate-cuts-fed-won-t-climb-down-yet-but-others-can-t-wait-any-longer 

A Costly Error

The US Treasury’s Bond Blunder Will Cost Gen Z Dearly
https://www.project-syndicate.org/commentary/superlong-bonds-could-have-helped-us-treasury-debt-burden-and-interest-payments-by-todd-g-buchholz-and-james-carter-2-2024-04
Rather than issuing 50- or 100-year bonds when interest rates were at rock-bottom, the US Treasury dismissed this option and simply continued to borrow on a short-term basis. Now that US interest payments are ballooning, the scale of this blunder has become apparent, as have the implications for future generations. 

Boosting Supply of Doctors in Africa

How an African university is connecting doctors to patients in remote communities