Winter’s wrath fell hard on car dealer David Kelleher last month, forcing him to close his Chrysler-Dodge-Jeep store near Philadelphia for five days due to heavy snow and ice. There was an upside, though: Booming sales of all-wheel drive models.
Aging populations in advanced economies such as the U.S. mute the efficacy of monetary policy, which therefore needs to play a more active role with larger variations in interest rates, according to research from an International Monetary Fund working paper.
A member of the investment committee for Japan’s government pension fund, the world’s biggest retirement savings pool, opposed the purchase of inflation- linked bonds, minutes of the group’s meeting last month show.
Employers are squeezing their workers’ retirement savings, holding back on both the amount and the timing of 401(k) matching funds and dragging out vesting schedules. Taken together, these measures are making it more difficult to save for old age.
When Robin McLane’s generation hit public schools in the 1950s, there were never enough classrooms or teachers to accommodate the bulge, she said. So she’s not surprised about the latest shock that boomers are delivering to the U.S. economy.
Janet Yellen, taking charge as Federal Reserve chairman, let lawmakers know she’s united with her policy committee and sees few risks that could derail a plan to steadily reduce the Fed’s bond purchases.