July 20, 2022
United States:
Powell’s Econ-101 Lesson Presents Best-Case Inflation Scenario
Federal Reserve Chair Jerome Powell is dusting off the supply and demand curves every student learns about in economics to explain what the US central bank is doing to bring inflation under control.
The trouble is, his story only presents a best-case scenario.
At the heart of it is the idea of a vertical supply curve — which Powell has cited during congressional testimony as a possible reason why inflation may fall as quickly as it has soared, without much disruption to economic activity.
Europe:
UK Home Rental Prices Jump at Sharpest Rate Since 2016
UK home rental prices rose at the sharpest pace since 2016 in June, adding to a cost-of-living squeeze
Rents rose 3% from a year ago last month, stronger than the 2.8% growth in May, the Office for National Statistics said Wednesday.
Rents are rising along with property prices, with demand outstripping the supply of homes in both markets. The surge in housing costs is stretching affordability for consumers already coping with the highest inflation in four decades.
Asia:
Hong Kong Ends Mandatory City-Run Isolation for Covid Variants
Hong Kong will no longer require people infected with the most highly infectious Covid-19 subvariants to isolate at government-run facilities, scrapping a rule that led many to fear reporting infections as cases surged in the city.
Local patients with omicron subvariants BA.2.12.1, BA.4 or BA.5, and their close contacts, will no longer face mandatory isolation at community facilities starting today, said Chuang Shuk-kwan, an official at the Health Department’s Center for Health Protection. Patients must meet criteria to allow them to safely isolate at home instead, including an appropriate bedroom and bathroom, she said at a briefing. No high-risk individuals may be in the home.
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