Drop the triple-shot latte... The cost of coffee beans has jumped 43% so far this year. An unusual frost in Brazil — the world’s #1 coffee producer — is contributing to soaring java prices. Companies know that consumers hate paying extra for the same products. Now, some java giants may consider "swapflation" to deal with rising costs. AKA: swapping out popular arabica beans for cheaper, but less premium, robusta beans. We could see it in other products, too.
Powell's party... might be nearing its end. To help the economy, the Fed has added trillions to the money supply through bond-buying sprees. That brought us near-zero interest rates during the pandemic, which helped boost spending. Think: lower rates for mortgages, credit cards, and business loans. But as the US economy recovers and prices continue to rise (#inflation), the central bank is considering pulling back on its economy-supporting policy later this year.