Overall consumption is being sustained by real income growth at the aggregate level, thanks chiefly
to continued gains in total employment. On a per‑capita basis, however, households remain cautious:
spending per worker is subdued; it’s simply the larger number of workers that keeps the retail
figures afloat. None of this is new, which is why recent retail‑sector data came in broadly as expected.
Two Considerations
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Wall Street’s lobbying for Fed independence — and the spoils of high rates.
JPMorgan Chase CEO Jamie Dimon, Bank of America’s Brian Moynihan, Citigroup’s Jane Fraser,
Goldman Sachs’ David Solomon, and Carlyle Group co‑founder David Rubenstein have all stressed
how crucial it is for the Federal Reserve to remain autonomous. Cynically, that stance also
preserves today’s lucrative environment of elevated policy rates and record‑wide
30‑year mortgage spreads — a windfall for the banking sector. Let’s not pretend it’s purely
about macro prudence. -
Zuckerberg’s billions for “personal super‑intelligence” versus domestic investment gaps.
Meta is funnelling vast sums into long‑horizon AI projects, yet far less private U.S. capital is
flowing into medium‑ and low‑value‑added manufacturing or agriculture. It’s a question that
policy‑makers — former presidents included — might usefully ask: why chase every
frontier technology while neglecting the bread‑and‑butter industries that anchor real‑world
employment and regional growth?