The latest national debate… “Recession or nah?” Last week, we learned that the US economy shrank for a second-straight quarter (aka: the common definition of a recession). But recessions are difficult to call, and are labeled retrospectively. The National Bureau of Economic Research (NBER), which officially determines recessions, is taking a more nuanced approach. While consumer sentiment is at a record low, the cooling job market is still fairly strong — and most earnings so far have beat expectations. Still, most Americans think the US is already in a recession.
America’s hungry for chips… And it’s splurging to satisfy its craving. Last week, Congress passed CHIPS-Plus, a bill to boost US chip production. The US has lost global chip-making market share in recent years: Taiwan’s TSMC makes 90% of the world’s advanced chips. Meanwhile, China plans to build 31 more chip factories by 2024. Foreign reliance worsened US supply shortages, since chips are key to everything from Ford cars to iPhones. CHIPS includes $52B in subsidies for US chip giants like Lattice, AMD, and ON (which report this week). President Biden is expected to approve the bill within weeks.