Competing infrastructure proposals, a call for a united front on China’s economic practices, ongoing consumer price increases, higher inflation expectations, and the potential for extended gubernatorial emergency powers in Connecticut are among the top business news items this morning.
National
Several competing infrastructure packages are emerging in Congress, raising the possibility that the bills may complement or undercut one another. Democrats are preparing a $3.5 trillion measure, while a narrower $1 trillion compromise measure aims to invest in traditional infrastructure.
China is denouncing a call by Treasury Secretary Janet Yellen for the United States and European Union to form a “united front” against China’s economic practices and human rights abuses. China has been accused of unfair practices in violation of its World Trade Organization commitments.
The consumer price index increased 5.4 percent from the previous year and 0.9 percent from the previous month in June, according to the Department of Labor. The increases are the highest since 2008 and reflect a steady increase in inflation this year.
Business trends
Consumer expectations of inflation hit a new record high in the Federal Reserve’s Survey of Consumer Expectations. The median inflation expectation over the next 12 months rose to 4.8 percent, despite Fed assurances that the current upward pressure on prices will be temporary.
Connecticut
Governor Ned Lamont is seeking to have the Connecticut General Assembly extend his emergency powers through Sept. 30 in order to extend 11 executive orders. The request has prompted pushback by Republicans, who say the severity of the COVID-19 pandemic in the state has eased enough that the enhanced executive authority is no longer necessary.
