Good morning. Here’s your Early Warning for Wednesday, 14 February 2018.
San Gabriel, California — where 55 percent of residents are foreign born — became the latest city to stop cooperating with Immigration and Customs Enforcement (ICE) over immigration enforcement. This is a solid trend we’ve been tracking, especially in California. San Gabriel previously had an agreement that enabled one of their detectives to be designated a federal customs officer to focus on combating human trafficking. Well, that’s over now. After some protests against the city, the council voted 3-2 to end the agreement. We’re working on a cumulative list of cities across the nation who’ve ended similar agreements or cooperation with ICE.
Former Senator Dan Coats, who’s now the Director of National Intelligence, told the Senate yesterday that this year’s “midterm elections are a potential target for Russian influence operations.” He joins CIA Director Mike Pompeo, who issued a similar warning recent. Continues Coats, “[I]nfluence operations, especially through cyber means, will remain a significant threat to U.S. interests as they are low-cost, relatively low-risk and deniable.”
More than 10% of student loan debt continues to be 90+ days delinquent, according to new data from Equifax. Delinquency rates on credit cards and auto loans have also risen since last year. This is an economic indicator we’ll keep an eye on.
Dow futures dropped this morning after the Consumer Price Index (CPI) for January was released. The CPI showed that inflation rose 0.5 percent last month, faster than what was expected, and that marks 2.1 percent year over year. Rising inflation is likely to trigger moves by the Federal Reserve to raise interest rates.