● The Theft of a Decade: How the Baby Boomers Stole the Millennials’ Economic Future
By Joseph C. Sternberg
Q&A with WBUR.org
A new book by Wall Street Journal writer Joseph C. Sternberg argues the economic practices of the baby boomers are imperiling the economic security of their children.
The baby-boom generation was born between 1946 and 1964; Millennials are defined as being born between 1981 and 1997, according to Pew Research Center.
The decade Sternberg refers to in the book’s title, “The Theft of a Decade: How the Baby Boomers Stole the Millennials’ Economic Future,” is the one following the global financial crisis of 2008.
He tells [WBUR] Here & Now’s Jeremy Hobson he chose to focus on that decade in particular because it was the period when the largest number of millennials were graduating from college and entering the early stages of their careers.
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Judging by several key economic indicators, it’s reasonable to assume that inflation will remain steady a moderate pace. US GDP growth in the first quarter quickened to a solid 3.2% increase and the labor market expanded at a strong pace in April. Later this year, the expansion will become the longest on record for the US. Such numbers suggest that inflation should be stable if not accelerating. But for reasons that no one fully understands, pricing pressure has been tepid and may be poised to slow further in the months ahead.

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China’s state media downplays odds for resuming trade talks with US: Bloomberg
Is US inflation too low? Yes, according to Fed officials: NY Times
Fed official: inflation-jobless rate link ‘has broken down’: Reuters
Survey: economists think US recession risk has increased: Reuters
Euro-area core inflation revised up to highest pace since 2017: Bloomberg
US jobless claims fell last week, sticking close to 50yr low: MW
Philly Fed Manufacturing Index increases to four-month high in May: MW
US housing starts rose more than expected in April but 1yr trend still negative: 

The escalating trade battle between the US and China shows no sign of easing, which raises questions about the outlook for US equities. Based on year-to-date results, however, across-the-board gains continue to prevail for the major US equity factors, based on a set of exchange-traded funds.
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GOP lawmakers raise questions on Trump’s Iran policy: The Hill
Alabama passes law criminalizing nearly all abortions: CBS
Trump bans US firms from using tech gear from China’s Huawei: CNN
US suspends all flights to Venezuela: Fox
Trump delays new tariffs on US car imports: WSJ
Trump’s tariffs are expected to modestly boost US inflation: WSJ
US retail spending unexpectedly fell in April: Bloomberg
GDPNow Q2 growth estimate for US slips to sluggish 1.1% increase: Atlanta Fed
Home builder sentiment in US rises to 7-month high for May: MW
NY Fed Mfg Index rebounds to 6-month high in May: NY Fed
Business inflation expectations tick up to 2.0% for May: Atlanta Fed
US industrial output’s 1-year change slows to weak 0.9% increase in April:

Maybe it’s a reaction to the recent escalation in the US-China trade conflict. Or perhaps the crowd is turning more cautious because of the runup in global equity markets earlier in 2019, before the trade row between Washington and Beijing undercut the bulls. Whatever the reason, yields on key Treasury maturities are trending down and the slide looks set to continue for the foreseeable future.
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US birth rate fell to 32-year low in 2018: WSJ
Iran officially ends parts of 2015 nuclear deal: CNBC
US orders partial evacuation of embassy in Baghdad: NBC
China’s retail sales growth fell to 16-year low in April: Reuters
Are Trump’s China tariffs the end game vs a negotiating tool? NY Times
German economy rebounded in first quarter: Reuters
Italy’s deficit is worrying European markets… again: Bloomberg
US import price inflation increased less than expected in April: Reuters
US Small Business Optimism Index rose to 4-month high in April: NFIB

The escalating US-China trade conflict is a wild card with unknown economic consequences. But even before factoring in this risk, the US economy is expected to post slower growth in the second quarter, based on a set of recent nowcasts.
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US plans tariffs on nearly all Chinese imports: Bloomberg
China responds to US tariffs with plans for new levies on imports: WSJ
US stock futures stabilize after Monday’s sharp decline: CNBC
Will China sell its vast US Treasury holdings? CNBC
White House reviews military options against Iran: NY Times
N. Korea demands return of ship seized by US: Reuters
NY Fed president: central banks should prepare for slow growth: Bloomberg
Eurozone industrial output fell again in March: Reuters
10yr-3mo Treasury spread inverted on Monday: MW

Risk-off sentiment triggered by rising US-China trade tensions unleashed red ink in financial markets far and wide last week. The only exceptions: high-grade government and corporate bonds, based on a set of exchange-trade funds representing the major asset classes.
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