The Daily Valet. - 3/17/22, Thursday

✔️ Raising Rates

Thursday, March 17th Edition

Cory Ohlendorf, Editor in Chief of Valet.

Do people still get pinched for not wearing green today? In this political climate?

Cory Ohlendorf , Editor ⋯ @coryohlendorf

Today’s Big Story

The Fed Raises Rates

But what does a rate increase really mean for you?

The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s—raising interest rates for the first time since 2018. They also implied there could be up to six additional rate hikes this year.

The quarter percentage point increase will raise rates from near zero to between 0.25% and 0.50%. Officials signaled they expect to lift the rate to nearly 2% by the end of this year—slightly higher than the level that prevailed before the pandemic hit the U.S. economy two years ago, when they basically slashed rates to zero. According to the Wall Street Journal, the rates are projected to rise to around 2.75% by the end of 2023, which would be the highest since 2008.

Fed Chairman Jerome Powell stressed his confidence that the economy is strong enough to withstand higher interest rates. But he also made clear that the Fed is focused on doing whatever it takes to reduce inflation. Powell said, “it’s punishing for everyone …if you’re a middle-income person or at the lower end of the income spectrum.”

According to NPR, the central bank is walking a tightrope as it tries to tamp down spending just enough to bring prices under control, without tipping the economy into recession. So how does this affect us, as consumers?

The mechanics are relatively straightforward, reports the New York Times, “By raising its federal funds rate—the rate banks charge one another for overnight loans—the Fed sets off a domino effect. Whether directly or indirectly, a number of borrowing costs for consumers goes up. In theory, this slows demand for goods and taps the brakes on inflation.”

Experts say we can now expect higher credit card interest rates, as well as higher interest on big financed purchases like cars. An increase in the Fed benchmark often means banks will pay more interest on deposits like savings accounts and C.D.s—but not necessarily right away. Stocks seem to be unaffected, but bond investors often worry at moments like these because when rates rise, the price of existing bonds fall.

↦ Meanwhile: Officials also revised their forecast for GDP growth, and now expect the U.S. economy to grow only 2.8% this year, down from the 4% forecast in December.

Putin Is Labeled a War Criminal

If these aren’t war crimes, what are?

President Biden explicitly called Vladimir Putin a “war criminal” Wednesday, after weeks of avoiding the term and at a time when his administration is still determining whether that label officially applies.

The U.K.'s Boris Johnson made similar comments, accusing Putin of “committing a series of war crimes” on a level which has not been in Europe “since the Third Reich, not since the Second World War.”

Remember, the International Criminal Court launched an investigation into allegations of war crimes just days into Russia's invasion. But since then, Russian forces have killed more than a dozen civilians standing in line for bread, they attacked a theater in Mariupol where more than a thousand people (families with children) had been sheltering, and their attacks on hospitals have become a consistent strategy.

The United Nations' International Court of Justice ruled on Wednesday that Russia should immediately suspend its military operations in Ukraine. Unfortunately, the court has no mechanism to enforce its rulings.

↦ Dig Deeper: Outmatched in military might, Ukraine has excelled in the information war.

Netflix Tries to Cut Down on Password Sharing

Want to give your log-in out? It might end up costing you.

Sharing your Netflix password with your best friend, your parents, your ex, or your ex's parents, may soon be a thing of the past. At least, sharing it for free.

According to Variety, the streamer will soon launch a test letting primary account holders pay an additional fee for users outside their households. The improper sharing of accounts outside the household has affected Netflix's “ability to invest in great new TV and films for our members,” the company said.

Chile, Costa Rica and Peru will be the first countries to experience this change, which is an attempt to curb the rampant account sharing that has been endemic to Netflix (and really, every streaming platform from Hulu to Spotify) for years. The exact added fee varies slightly due to local currency conversion rates, but roughly comes out between $2 and $3.

While Netflix is probably the best-known of its peers, its dominance in the market has waned recently. The Los Angeles Times reports that the company fell below its forecast for added subscribers in the fourth quarter of 2021, and, overall, added 19 million fewer new subscribers in 2021 than it did 2020. Meanwhile, HBO Max, Disney+, Hulu, and others continue to make inroads into the market.

↦ FYI: Last year, Netflix tested a prompt to have password freeloaders re-enter their credentials to keep using the service.

Bring On the Charred Snacks

Nearly burnt chips, pretzels and crackers are taking over the snack aisle

I don't know about you, but I love the taste of food that's been charred. I like my toast extra dark, my barbecue smoky and my brussels sprouts roasted until they're extremely crispy. So this latest development in snacking is very appealing to me.

According to Eater, the hottest new flavor in snack food isn't a flavor at all. “It's more of a method, which in many ways leads to the absence of flavor, but which also is for many exactly the point. Get excited to buy burnt chips.”

The Better Made brand may have kicked off the trend with its “Rainbow” chips, which it first started mass-producing in 2005. They look and taste more like chips you'd get at a place offering house-made chips: Dark, crispy and slightly carmelized.

Burnt flavors have been on the rise—riding the coattails of “barbecue” and other smoky flavors, according to Marcia Mogelonsky, director of insight at market research company Mintel. Cult chip brands like Utz and Cape Cod have all introduced “dark” russet kettle chips recently. There are even twice-baked “extra dark” pretzels. And after “years of fan requests” for the rogue burnt bits in a Cheez-It box, the company finally introduced an “Extra Toasty” line of crackers.

↦ FYI: Good news for us burnt fan boys, the carcinogens often found in charred food is unlikely to increase the risk of cancer.

In Other News

↦ The White House Demands Faster Drop in Gas Prices As Oil Tumbles

↦ Apple’s Universal Control for Macs and iPads Is Now Here. Here’s How It Works.

↦ Bjarke Ingels Unveils a Treetop Hotel Room in Sweden Covered With 350 Bird Houses

Other Things We’re Talking About Today

St. Patrick’s Day history

The year’s most stylish film

The best Irish pubs in the U.S.

It’s Time to Clean Out Your Closet

The spiritual, organizational and financial freedom that comes with getting rid of stuff

It's not a new concept. Valet. has been expounding the idea of buying less, but buying better since our inception over a decade ago. But the truth is, we all somehow end up with plenty of useless crap in our closets.

Partly because that's where we throw the stuff we don't want to see (“I don't need another tote bag, but I'll hold onto it, just in case”). And then there's the staggering realization that we don't even wear most of the clothes we buy. Not surprisingly, California Closets' customer data confirms that the average person wears approximately 20% of their wardrobe.

And here's something you probably knew subconsciously but never fully realized: Getting rid of stuff, like the stuff you never use that's just taking up vital space, feels really freaking good.

Our own Jordan Taylor figured out the best way to clean out your closet and not make it feel like a chore. After all, it's time for spring cleaning, right? Here's what we learned: All you need is a few trash bags, a stiff drink and the courage of your convictions.

↦ Read: The five-step plan for organizing your closet and your wardrobe.

What We’re Buying

This pair of military-inspired camp cargo pants is made from a three-season weight herringbone-patterned cotton, which is perfect for transitioning into spring. They feature a lot of vintage intricacies like a Hollywood waist, reinforced knee, melamine buttons and a button fly. The pants are straight fit so you can pair them with any type of footwear, but we suggest a pair of sturdy boots to dress them up or for a nice, relaxed look, maybe some canvas sneakers or Boston clogs.

↦ Get It: $268 / $144 by Todd Snyder