US railroad strike looks likely to trigger another surge in food price inflation

US political site ‘The Hill’ report:

  • As soon as next week, 115,000 freight rail workers could walk out if they cannot reach a new contract with railroads
  • potentially shutting down the national rail network that transports 20 percent of all grain shipments.
  • Even a short-lived interruption “would create a devastating ripple effect” on the nation’s fragile supply chains, said Lee Sanders, senior vice president of government relations and public affairs at the American Bakers Association.
  • Freight railroads also carry roughly half of fertilizer, and farmers can’t afford delays … “If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers

There is plenty more here, link.

Food prices are not ‘core’ inflation, but I think it myopic to disregard food prices soaring. And, if anyone from the Federal Reserve is reading, no, we can’t just eat cake.

Federal Reserve Federal Open Market Committee (FOMC)

Increases in restrictions on the export of semiconductors from the United States to China are among President Biden’s proposals.

Reuters report on even further curbs on the sales of U.S shipments to China of semiconductors used for artificial intelligence and chipmaking tools.

Reuters cite “several people familiar with the matter”.

  • The Commerce Department intends to publish new regulations based on restrictions communicated in letters earlier this year to three U.S. companies — KLA Corp, Lam Research Corp and Applied Materials Inc, the people said, speaking on the condition of anonymity. The plan for new rules has not been previously reported.
  • The rules would also codify restrictions in Commerce Department letters sent to Nvidia Corp and Advanced Micro Devices last month instructing them to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses.


Here is the link for further detail.

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