Instacart has raised another $200M at a $4.2B valuation

Re:Instacart has raised another $200M at a $4.2B valuation by roymurdock on Monday February 12, 2018 @02:13PM (#16361115)

Fed doesn't have much room to play with interest rates currently, and won't until we see a meaningful pickup in productivity, or else they risk further depressing investment into productive assets and rerouting it into speculative assets (high interest rate = high cost of borrowing/lending = high friction = slows economy down).

We would observe a productivity increase through wage growth, as would be expected in a high employment environment (high demand for labor, low supply sets price of labor [wages] high) but I don't see anything from my viewpoint within the embedded and IoT industry that will meaningfully increase productivity in the near future. So more of the same we are experiencing now

Unless you see some new tech that will improve productivity, in which case please do share!

[ Parent | on HN ]

Re:Instacart has raised another $200M at a $4.2B valuation by jjxw on Monday February 12, 2018 @03:34PM (#16361827)

Ah - that's an interesting perspective I had not considered. I was basing my prediction on the stronger than expected job gains, GDP growth forecasts, and how the Fed is cutting back on quantitative easing.

Keeping an eye on the US inflation report coming out this Wednesday should provide more guidance on what the Fed may do - if it's higher than expected I think the Fed will probably raise rates by another .25%.

[ Parent | on HN ]

Re:Instacart has raised another $200M at a $4.2B valuation by roymurdock on Monday February 12, 2018 @03:44PM (#16361929)

Yep, I think the more interesting question is: if labor market is so strong (low unemployment) then why aren't wages increasing meaningfully?

Here's one of my favorite practicing economists giving a bit more insight into the Fed and its interest rate strategy: https://www.newsmax.com/finance/narayanakocherlakota/fed-dri...

[ Parent | on HN ]