Your Evening Briefing: US Economy at Risk Again as Rail Strike Looms

A gut punch to the US economy looms just in time for the holidays. American railway union members rejected a labor deal brokered by President Joe Biden earlier this year, increasing the threat of a strike by as soon as Dec. 5. The impact would be far reaching: rail remains a key way to move goods and raw materials around the country. A strike would most likely exacerbate high inflation and return the country to the kind of supply chain chaos it recently faced as a result of the pandemic. And a work stoppage right before the holidays could also disrupt travel plans for millions as passenger trains are forced to sit idle on freight-company controlled tracks. Congressional Democrats have been wary of intervening in labor disputes, but the severity of the impact could force lawmakers to bring their formidable powers in this arena to bear. A rail strike hasn’t happened in the US since 1992.

While private equity has been preoccupied protecting the lucrative carried interest fee structure in Congress, the Biden administration has been quietly undermining the industry’s business model.