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   DealBook: Everything is getting more expensive
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   Persistently high inflation is a problem for the Fed and the White House.
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             October 14, 2021
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              Good morning. (Was this newsletter forwarded to you?
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                  The Port of Los Angeles will start operating around the clock to help ease supply issues, which have stoked inflation.
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             Prices and policy
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             Consumer prices rose more than economists expected last month,
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              new numbers show
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             , on top of an already high August reading. While a jump in prices was expected as the economy recovered from the pandemic shock, persistently high inflation is complicating plans for both the Fed and the White House, who face pressure to act so that price gains don’t become a permanent fixture.
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              Americans are paying more for dinner, fuel and housing,
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             and wage gains, while decent, aren’t keeping up. Hopes that a spike in prices would quickly fade — that pandemic-induced inflation would be “transitory,” to use the economic lingo — are being challenged by rising prices for
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              a wide range of items
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             : Meat rose by nearly 13 percent in the year to September, gasoline was up 42 percent and rent rose by more than 3 percent (double the rate six months ago).
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              What it means for the Fed:
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             As the central bank prepares to remove emergency stimulus measures to support the economy, sustained inflation could force the Fed to move faster than it would like, before the labor market is fully healed. In
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              newly released minutes
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             from their latest policymaking meeting, Fed officials appear split, with “various” members arguing that interest rates should stay near zero for a couple of years, while “a number” said that rates would need to go up next year, with inflation most “likely to remain elevated in 2022 with risks to the upside.” A
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              recent Fed survey
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             suggests that consumer expectations for inflation are running at historic highs.
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             Continue reading the main story
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             ADVERTISEMENT
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              What it means for the White House:
             </span>
             The tricky task of passing two enormous spending packages is made harder as opponents argue that the bills
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              could worsen inflation
             </a>
             . Fixing the supply chain snarls that are behind some of the price pressures has become a priority, with President Biden announcing yesterday that the
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Port of Los Angeles will operate around the clock
             </a>
             and that major companies including FedEx, UPS and Walmart will expand their working hours. But it’s not clear how much those efforts can help because the blockages stretch up and down supply chains, from foreign harbors to American railyards and warehouses.
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              The most visible policy effect of high inflation is on Social Security.
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             The Social Security Administration said yesterday that it would
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              raise benefits 5.9 percent in 2022
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             , the biggest cost-of-living adjustment in the past 40 years. “You’re glad that you get a 5.9 percent increase,” said Nancy Altman, the president of Social Security Works, an advocacy group, “but it doesn’t feel like you’re getting 5.9 percent when all of your other costs are going up much higher.”
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             HERE’S WHAT’S HAPPENING
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Thousands of John Deere workers go on strike.
             </span>
             Some 10,000 workers at the agriculture equipment maker’s facilities primarily in Iowa and Illinois
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              went on strike
             </a>
             early this morning after rejecting a contract proposal that union negotiators had reached with the company. As employers grapple with labor shortages, workers across the country appear more willing to strike, as at
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Kellogg
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             and
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              Nabisco
             </a>
             .
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             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              More big banks report bumper earnings.
             </span>
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Bank of America
             </a>
             ,
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              Morgan Stanley
             </a>
             and
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Wells Fargo
             </a>
             beat expectations for their latest quarterly earnings. This follows a similar pattern at
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              JPMorgan Chase
             </a>
             , which reported yesterday, easing some worries about the strength of the economic recovery.
            </p>
           </td>
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        </table>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              A study suggests that J&amp;J vaccine recipients may fare better with a Moderna or Pfizer booster.
             </span>
             The finding from a
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              federal clinical trial
             </a>
             , along with a mixed review from the F.D.A., is a blow to Johnson &amp; Johnson’s case for approving a booster of its single-dose coronavirus vaccine. F.D.A. advisers
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              meet today and tomorrow
             </a>
             to decide on allowing J&amp;J and Moderna to offer booster shots.
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              The S.E.C. is sued for its stance on proxy advisers.
             </span>
             The National Association of Manufacturers
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              took issue with the securities regulator
             </a>
             for not enforcing a Trump-era rule that sought to rein in the firms that are hired by institutional investors to advise them on how to vote their shares. Some companies argue that proxy advisory firms distort shareholder votes, but
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              a recent study
             </a>
             found that the firms can lead to better corporate outcomes.
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              MindBody acquires ClassPass in a merger of exercise services.
             </span>
             The
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              combination of the two companies
             </a>
             that help individuals find open exercise classes, and studios fill open spots, is a bet that people will soon return to gyms. Meanwhile, Tonal, a maker of connected fitness equipment, announced that the basketball star
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              LeBron James has invested
             </a>
             in the company, a bet that people will upgrade their home gyms.
            </p>
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             A duty to think of the big picture
            </h2>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             The Labor Department
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              proposed rule changes yesterday
             </a>
             that would make it easier for retirement plans to add investment options based on environmental, social and governance, or E.S.G., considerations.
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Reversing
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              a Trump-era policy
             </a>
             , the
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              proposal
             </a>
             not only permits pension plan administrators from considering these factors, but it may make it their legal duty to do so, especially as the economic consequences of climate change continue to emerge. The Biden administration’s regulations would also make it possible for E.S.G. funds to be the default setting upon enrollment, which the previous administration prohibited.
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              The existing rule appears to have a “chilling effect” on using E.S.G. factors to judge investments,
             </span>
             said Marty Walsh, the labor secretary. “If these legal concerns were keeping fiduciaries on the sidelines, it could mean worse outcomes for workers and retirees,” Walsh said. E.S.G. factors are now incorporated in some $17 trillion worth of investments, or about one in three dollars under professional management. A small fraction of these investments are held by retirement plans, even as interest is rising fast, especially among younger investors.
            </p>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Retirement plan overseers can’t sacrifice returns or take on greater risks in pursuit of E.S.G. objectives,
             </span>
             according to the proposed new rule. But investment managers could consider these issues earlier in the analytical process than under the old rule.
            </p>
           </td>
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         </tbody>
        </table>
       </div>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Some investors have used E.S.G. factors in proxy fights with companies.
             </span>
             Increasingly, shareholders have made environmental and social proposals at companies —
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              and won
             </a>
             . This year, such resolutions got an
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              “eye-popping” amount of support
             </a>
             . With even more money potentially unlocked to invest in these strategies, this trend is likely to continue.
            </p>
           </td>
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         </tbody>
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       </div>
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             “I doubt we’ll be talking about supply chain stuff in a year. I just think that we’re focusing on it too much. It’s simply dampening a fairly good economy. It’s not reversing a fairly good economy.”
            </h2>
           </td>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-style:italic;font-size:inherit">
              — Jamie Dimon of JPMorgan Chase on the bank’s
             </span>
             <span style="font-style:italic;font-size:inherit">
              <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
               latest earnings call
              </a>
             </span>
             <span style="font-style:italic;font-size:inherit">
              .
             </span>
            </p>
           </td>
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       </div>
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           <td align="left">
            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             Piercing the veil of incarceration
            </h2>
           </td>
          </tr>
         </tbody>
        </table>
       </div>
       <div style="margin:0 auto;max-width:600px;width:100%">
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Larry Miller, the chairman of Nike’s Jordan Brand, was living in a kind of prison even as he rose through the top ranks of business — at Campbell Soup, at Kraft Foods and at the N.B.A. He had harbored a secret for more than 50 years that he feared would destroy him: When he was 16, Miller shot and killed another teenager and was imprisoned.
            </p>
           </td>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Revealing his secret has been “a real freeing exercise.”
             </span>
             Miller, 72, kept the truth from almost everyone, even some of his children,
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              he told Sports Illustrated
             </a>
             . Opening up about it, he said, could help change how others perceive people with criminal convictions.
            </p>
           </td>
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         </tbody>
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       </div>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Criminal justice has become a popular cause in boardrooms,
             </span>
             with a wide range of companies — like JPMorgan Chase, Koch Industries, McDonald’s,
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Third Point
             </a>
             and Walmart — joining initiatives to
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              train and hire formerly incarcerated individuals
             </a>
             who have paid their debt to society. Miller’s success in business, described in a book about his life that
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              comes out next year
             </a>
             , may persuade people to rethink redeemability, he said.
            </p>
           </td>
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         </tbody>
        </table>
       </div>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              “It’s really about making sure that people understand that formerly incarcerated people can make a contribution,”
             </span>
             Miller said. “And that a person’s mistake, or the worst mistake that they made in their life, shouldn’t control what happens with the rest of your life.”
            </p>
           </td>
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               <td style="width:100%;padding:0;line-height:1" width="100%">
                <img class="css-1rg59gv e1e3sevz0" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2021%252F01%252F29%252Fbusiness%252Fdealbook-icon-percentage%252Fdealbook-icon-percentage-articleLarge-v11.gif/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSJ9:1mazVR:8L3pUzwx4vDr43WuPGuKNfq0Hr4zRAmCy_1Lk-plXAk" style="display:block;width:100%;height:auto;padding-bottom:25px;padding-top:10px"/>
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            <h2 class="css-12n1aic el2acgh0" style="color:#000;font:700 25px/32px arial,sans-serif;margin:0 0 10px">
             Why ‘no jab, no job’ policies are rare in Britain
            </h2>
           </td>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Starting next week, Blackstone will require employees who want to work at its London office to be vaccinated against the coronavirus, according to a memo seen by The Times. That means the American private equity giant is taking a much more forceful approach to vaccinations than many other businesses in Britain,
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Eshe Nelson and Lananh Nguyen write
             </a>
             .
            </p>
           </td>
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            <p style="color:#000;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             <span style="font-weight:700;font-size:inherit;font-family:arial,sans-serif">
              Data protection and employment discrimination laws make corporate vaccine mandates rare in Britain.
             </span>
             In the U.S., it is increasingly common to require employees to be inoculated to remain in their jobs, with companies with more than 100 workers getting ahead of
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              a rule by Biden
             </a>
             that will apply to them. (United Airlines’ C.E.O., Scott Kirby,
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              confirmed yesterday
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             that 232 of its unvaccinated U.S. employees were “going through the termination process.”) Companies in Britain, by contrast, have been advised to encourage vaccination rather than enforce it. Collecting proof of vaccination is particularly charged because medical records have special protection under British privacy laws.
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             In the U.S., Blackstone asked vaccinated deal makers to return to offices
             <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              three months ago
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             . In London, where more than 400 people work for the firm, working in the office remains voluntary, as does uploading proof of vaccination.
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               AvidXchange, a fintech firm backed by Mastercard and Peter Thiel, slipped in its first day of trading, ending with a market cap of $4.9 billion. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                Bloomberg
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               Tech investors have made more than $580 billion from listings and M.&amp;A. deals so far this year. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                FT
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               The winemaker Winc is targeting a valuation of more than $260 million for its upcoming I.P.O. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                Reuters
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               The British payment processor SumUp is acquiring Fivestars of San Francisco as it expands into the U.S. to compete with Square and PayPal. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
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               The Biden administration is planning to develop wind farms along nearly the entire U.S. coastline. (
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               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                FT
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               The venture capital firm Andreessen Horowitz is shopping its ideas about crypto regulation around Washington. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                CNBC
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               The S.E.C. plans to break from its common practice of “no admit, no deny” settlements of civil enforcement actions. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                WSJ
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               The top federal auto safety regulator has questioned Tesla on its lack of a recall after an update to its driver-assistance software. (
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                NYT
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               Jack Ma, the billionaire founder of Alibaba who has laid low during China’s tech crackdown, has reappeared in Hong Kong. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                Reuters
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               “The Most Important Global Meeting You’ve Probably Never Heard Of Is Now” (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                NYT
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               Workers in China are sharing details of their hours in a spreadsheet to protest the country’s excessive work culture. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                Bloomberg
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              <span style="font-size:17px;line-height:25px">
               “How New York’s Skewed Property Tax Benefits the Rich” (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                Bloomberg Businessweek
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               The “Star Trek” actor William Shatner, 90, became the world’s oldest space traveler after his trip aboard a Blue Origin rocket. (
               <a class="css-5nb5nb et1n85g0" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
                NYT
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