Bloomberg (March 17)
“Even with the dollar’s rally since 2014, U.S. manufacturing is benefiting from the world’s strongest rate of productivity, a flexible labor market, cheap energy and from having a big domestic market.” The lingering belief that it’s radically cheaper to move production to China is a misconception. “Labor costs adjusted for productivity in China are only 4 percent cheaper than in the U.S.”
Tags: China, Dollar, Energy, Flexible, Labor market, Manufacturing, Productivity, Rally, U.S.
Institutional Investor (March 16)
All eyes are on the Federal Reserve. Not because anybody expects them to change interest rates at today’s meeting, but because everybody wants a glimpse of the future. “Concerns over volatility around the globe and fragility in some sectors, notably energy and industrials, suggest that the Fed may signal a moderation of the pace of tightening…. A slower path for rates seems plausible as core inflation appears to be manageable.”
Tags: Concerns, Core inflation, Energy, Fed, Fragility, Industrials, Interest rates, Moderation, Tightening, Volatility