Why Americans are driving older cars
Share Now on:
If it hasn't rusted through, has good tires and an airbag, why trade? The quality of cars these days and, yes, the pandemic, have something to do with an aging car fleet in the U.S. Plus, more data on increasing prices equals more anticipation for what the Federal Reserve will say about its forecasts for interest rates. And, the systemic failure to equitably invest in Black entrepreneurs in the U.S., how that's changing and whether the wave of commitments by corporations and venture capitalists over the last year represents a temporary blip or a lasting shift in how money is allocated.
Segments From this episode
There are more signs of inflation, but interest rates don't reflect that yet
"There is plenty of inflation," said David Kelly, chief global strategist at J.P. Morgan Asset Management. That can be seen in a recent rise in consumer prices and a rise in wholesale prices reported today by the Labor Department that shows a record increase over the past year. Still, Treasury note yields aren't spiking like we'd expect them to. Kelly offers a technical explanation for one of the reasons why: "One of them is the Treasury Department had a huge amount of money on deposit with the Federal Reserve, which it's actually been using to pay the bills for the last five or six months. Instead of issuing new debt, which would have pushed up interest rates, they've just been running down the checking account. And that has stopped interest rates from rising so far, but we still think, look, if there's inflation there, we're going to see higher rates in the months ahead."
The average car on the road right now in the U.S. is 12 years old.
Many large companies are interested in both the cause and the financial returns, says Melissa Bradley of 1863 Ventures.