Slowing Economic Growth, Rising Inflation Raises Concerns

Economists have been hoping for a ‘soft landing’ scenario, in which the Federal Reserve’s monetary tightening would tame inflation without causing a recession. In the closing months of 2023, it appeared that this ideal scenario was in reach. with falling inflation numbers, low unemployment, and talks of cutting interest rates. However, recent economic data has cast doubt on whether the US economy can stick the landing.

Inflation numbers for the first quarter of 2024 came in higher than expected, with consumer prices rising 3.5% in March year-over-year, up from February’s 3.2% inflation rate. The target inflation rate is 2%.

Meanwhile, US GDP growth for the first quarter of 2024 was 1.6% annualized, a decrease from the 3.4% growth rate in Q4 2023. This slowing growth, combined with the rising inflation, has raised fears of possible ‘stagflation,’ in which the economy shrinks while prices rise. Typically, prices decrease in recession, reducing the hardship on consumers amid job losses and reduced economic output. In a stagflation scenario, customers pay higher prices while still facing job losses.

Equity markets have pulled back in response to the data as investors have become far less confident of the Fed cutting interest rate cuts this year.

The current economic situation remains relatively strong on paper: Unemployment remains low, job growth remains strong, and inflation remains far below the high levels seen in 2021 and 2022. These positive economic indicators have been blunted by what some have called a cost of living crisis, most notably felt in rising housing costs and wages not keeping up with rising costs in general.

 

Baltimore Bridge Collapse Caused by Cargo Ship Kills 6, Threatens City Economy

The container ship Dali struck the Francis Scott Key bridge in Baltimore, Maryland, on March 26, resulting in the death of 6 construction workers on the bridge. The ridge was closed to traffic just before the Dali lost power and collided with the bridge.

Traffic across the river will be detoured for the foreseeable future to Baltimore’s two tunnels as crews work to remove the fallen bridge, a challenge given the bridge’s size and structure. Baltimore’s port will largely remain closed, posing a threat to the metro area’s economy.

 

Former US Senator and Vice Presidential Nominee Joe Lieberman Dies at 82

Former US Senator and Democratic Vice Presidential nominee Joe Lieberman died Wednesday at 82. His family said in a statement that his death was caused by complications from a fall.

Lieberman, born on February 24, 1942, to a Jewish family in Stamford, Connecticut, attended Yale University for his undergraduate and law degrees. He was elected to the Connecticut State Senate in 1970 as a Democrat, where he later became majority leader. He became Connecticut attorney general in 1983, and in 1988 he challenged incumbent US Senator Lowell Weicker, a liberal Republican. With the support of fellow Yale alumni William F. Buckley, founder of the National Review, and his brother, former Senator James L. Buckley, Lieberman won the Senate seat.

In 2000, Al Gore chose Lieberman as his running mate. The ticket later narrowly lost to George W. Bush. Lieberman lost the Democratic nomination in his 2006 reelection campaign to future governor Ned Lamont, but won the general as an independent. He continued to caucus with the Democrats to maintain his committee assignments.

He endorsed John McCain for president in 2008 and was considered as a possible VP pick for McCain. Lieberman retired from the Senate in 2012.

 

Biden Ramps Up Campaign as Trump Faces Financial Headwinds

The Biden campaign raised around $26 million from a New York City fundraiser last week attended by celebrities and two of the three former Democratic presidents. This adds to the president’s and the Democrats’ large fundraising advantage over Donald Trump and the Republicans.

The fundraiser consisted of musical performances by Queen Latifah and Lizzo, along with a panel discussion with Biden, Barack Obama, and Bill Clinton and hosted by comedian Stephen Colbert.

Biden’s team has tapped into their funds for a $30 million ad blitz in the swing states, where he largely trails Trump. Biden has closed some of the gap with Trump in these states, but he still trails Trump in the RealClearPolitics polling aggregate, both in the swing states and nationally.

Trump, facing financial setbacks as a result of his legal troubles, may have gotten a needed boost when his social media company, Truth Social, went public last week under the ticker DJT. The long-awaited listing allowed the company to reach a market capitalization of over $8 billion. Trump’s 58% stake in the company gives the former president $5.2 billion, in addition to his existing wealth from real estate and other investments.

However, a large selloff of his holdings may cause the stock price of Trump Media & Technology Group to fall, reducing the liquid wealth from which he can draw. Trump also faces a lock up period in which he cannot sell his shares for six months. He may, however, obtain a waiver from this restriction or borrow money against his holdings.

 

Former Costa Rican First Lady Marita Camacho Quiros Celebrates 113th Birthday

Marita del Carmen Camacho Quirós, the former First Lady of Costa Rica, celebrated her 113th birthday today. Born on March 10, 1911, in San Ramón, she married businessman and politician Francisco José Orlich Bolmarcich, a descendant of Croatian immigrants, who became president of Costa Rica in 1962, serving until 1966. Both shared March 10 as their birthday. 

During her husband's presidency, she promoted children's education and shelters throughout the country. She and her husband also met US Presidents John F. Kennedy and Lyndon B. Johnson on official state visits.

Her husband died a few years after leaving office at 62 in 1969. Now at 113, Camacho Quirós is the world's oldest former first lady ever, the oldest living Costa Rican, and the 28th oldest living person in the world. She is the oldest living person who remains notable for reasons other than their longevity. 

Camacho Quirós in 1962
Credit: US State Department

More information on her life and images of her throughout her life can be found on her Gerontology Fandom page.