Heard on the Street podcast: the great inflation divide and lessons from Uber’s sale to Didi Chuxing
Prices may seem like they are falling when you fill up at the gas pump or purchase a new shirt, and the costs of those items are indeed declining. But prices for services like renting a car or getting a haircut are climbing. This goods versus services divide has led to an era of inflation “haves” and “have-nots,” creating an interesting challenge for the Federal Reserve as it evaluates the economy’s health.
Heard on the Street’s Justin Lahart joins Miriam Gottfried and Ken Brown to discuss the causes behind the inflation divide and how the Fed will have to tailor its reaction. Will it opt to raise rates even when prices on goods are falling?
Then, Alex Frangos comes on the line from Hong Kong to talk about Uber’s decision to leave China and sell its operations there to its native-born rival Didi Chuxing. The move makes it the latest of many U.S. tech companies to suffer setbacks in China, leading to the question of whether U.S. investors should stop viewing the country as a Holy Grail for growth.