Week InReview Friday | Feb 26, 2021

Travel in the Time of Covid

Photo: Malaka Gharib/ NPR

As lockdown orders are relaxed to some capacity in countries around the world, travel is starting to see an uptick for the first time since mid-March. But when it comes to taking a longer trip, is it better to travel by car or by plane? — NPR Goats & Soda

let's recap...

The Federal Reserve building in Washington.

Rare bond-market inversion signals short-loved boost to inflation Markets are signaling that inflation is coming and investors are getting ready. Treasury yields are rising and stock-market investors are starting to shift from high-growth tech companies toward companies like airlines that will benefit from an economic rebound. But one corner of the Treasury market suggests that a coming bump in U.S. inflation will run out of steam swiftly. This has implications for fans of gold or cryptocurrencies who fret about runaway inflation. (The Wall Street Journal | Feb 25) Wall Street is inflation-proofing its debt-market portfolios From money managers at BlackRock and T. Rowe Price, to analysts at Goldman Sachs, to the credit shops run by Blackstone and KKR, a new economic reality is prompting Wall Street’s most powerful forces to adjust their investment strategies. The rise in inflation set to accompany the post-pandemic economic boom is threatening to reverse the four-decade decline in U.S. interest rates, sparking a rush to protect the value of trillions of dollars of debt-market investments. (Bloomberg Markets | Feb 22)  Yellen favors higher company tax, signals capital gains worth a look Treasury Secretary Janet Yellen said President Joe Biden favors boosting taxes on companies, and signaled openness to considering raising rates on capital gains, while steering clear of a wealth levy. “A wealth tax has been discussed but is not something President Biden” favors, Yellen said at a virtual conference on Monday hosted by the New York Times. She said such a tax would have significant implementation problems. (Bloomberg Economics | Feb 22) Yellen signals interest in backing digital-dollar research Treasury Secretary Janet Yellen signaled the Biden administration supports research into the viability of a digital dollar, a shift from the lack of enthusiasm shown for the concept under her predecessor, Steven Mnuchin. “It makes sense for central banks to be looking at” issuing sovereign digital currencies, Yellen said at a virtual conference on Monday hosted by the New York Times. She said a digital version of the dollar could help address hurdles to financial inclusion in the U.S. among low-income households. (Bloomberg Cryptocurrencies | Feb 22) Yellen, Powell wary of financial froth while they push stimulus U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell appear wary of signs of froth in financial markets, even as they press ahead with economic stimulus measures that are elevating the euphoria. There “may be sectors where we should be very careful,” Yellen told CNBC television last week, when asked about possible speculative sizzle. (Bloomberg Economics | Feb 22)

A long way to go for U.S. economy

The Fed's Jerome Powell signals continued support. Photographer: Stefani Reynolds/Bloomberg

(Feb 24) — Federal Reserve Chair Jerome Powell emphasized that the U.S. economy has a long way to go and signs of prices rising won’t necessarily lead to persistently high inflation. “Our policy is accommodative because unemployment is high and the labor market is far from maximum employment,” he told the House Financial Services Committee on Wednesday. Powell pointed to examples like car prices rising because of a chip shortage, and supply-chain constraints in the tech industry. Meanwhile, the $9 trillion rescue mission by central banks to improve the global economy is being tested as rising bond yields and inflation bets threaten their ability to keep borrowing costs down. see also (Bloomberg Economics) Powell pushes back on rising prices concerns (Feb 25) Fed’s Powell tight-lipped on bank dividends and leverage relief (Feb 24) Powell signals Fed to keep buying bonds (Feb 23)

the cyber cafe

National Security Agency

NSA issues guidance on zero trust security model The National Security Agency's Embracing a Zero Trust Security Model shows how deploying Zero Trust security principles can better position cybersecurity professionals to secure enterprise networks and sensitive data. The Zero Trust model eliminates trust in any one element, node, or service by assuming that a breach is inevitable or has already occurred. The data-centric security model constantly limits access while also looking for anomalous or malicious activity. — National Security Agency More SolarWinds hack victims yet to be publicly identified Technology executives affected by the hack of federal government computer systems by suspected Russian agents told senators the attack was likely wider, more complex and harder to trace than previously known. The Biden administration said Tuesday that retaliatory actions are expected in the coming weeks. — The Wall Street Journal Nearly 30,000 Macs reportedly infected with mysterious malware The malware, called Silver Sparrow, does not "exhibit the behaviors that we've come to expect from the usual adware that so often targets macOS systems," Tony Lambert, an intelligence analyst at Red Canary wrote. It's not clear what the malware's goal is. Silver Sparrow includes a self-destruct mechanism that appears to have not been used, researchers said. It's also unclear what would trigger that function. — Red Canary

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binge reading disorder

An animated flying cat with a pop-tart body sold for almost $600,000 People have long attached emotional and aesthetic value to physical goods, like fine art or baseball cards, and have been willing to pay a lot of money for them. But digital media has not had the same value because it can be easily copied, shared and stolen. — The New York Times Here's how much wealth you need to join the 1% Joining the ranks of the richest 1% is never easy, but it’s especially hard in Monaco. You need to be worth almost $8 million to make the cut in the Mediterranean principality, where residents typically don’t pay income taxes. Switzerland and the U.S. have the next highest entry points, requiring fortunes of $5.1 million and $4.4 million, respectively, according to the property broker’s 2021 Wealth Report. In Singapore, $2.9 million will get you over the threshold. — Bloomberg Wealth The rise of the wellness app Shifting our entire lives indoors this past year has also meant shifting our entire lives online. For a significant part of the population, where we work, where we socialize, where we relax got squeezed into the same two-dimensional space: our screens. — The New York Times Magazine

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