Offshore wind and interest rates

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Good afternoon,

A couple of updates as we head into the  weekend.

Yes,  President Biden hanging out at his second home near Rehoboth Beach and we’ll see  whether he ventures out for an ice cream cone.

But there are bigger issues looming.

Philadelphia Federal Reserve Bank President and former University of Delaware chief  Dr. Patrick Harker doesn’t see inflation going away anytime soon.

In an interview with the Japanese site, AsiaNikkei.com, Harker said the labor shortage and the lack of semiconductors that have left once-crowded new car dealerships empty are likely to persist.

Harker sees a tapering off of bond purchases by the Fed (a possible way to cool down inflation) as likely to come sooner rather than later.

Naturally enough, Harker would not predict if or when the Fed might raise interest rates.

Harker made a point of noting that the Fed and its Open Market Committee do not operate in an ivory tower. In addition to keeping an eye on the numbers, bank presidents take the pulse of the community.

The Fed president  doesn’t serve on the Open Market Committee that raises or lowers rates. However, all regional bank presidents participate in discussions before committee actions.

Offshore wind update

Finally, wind power developer  Ørsted has not ruled out bringing power lines onshore at the Indian River generating station near Millsboro.

Coastal Point reported that members of the Bethany Fenwick Chamber of Commerce were told that Indian River is an option. While the site near Millsboro has the transmission infrastructure in place, there are questions about how long the coal-fired generators will operate.

Grid manager PJM raised the possibility that Indian River could run longer than its mid- 2022 shutdown date, due to the possible need to beef up the grid in the area before it powers down for good.

A recommendation from PJM is expected late this month.

Ørsted continues to make the case that its Skipjack Wind project 16 miles off Fenwick Island will be an economic boon for Delaware, even though its electricity will be counted towards Maryland’s renewables mandate.

Finally, an organization, known as the Delaware-Maryland Wind Alliance has been formed to promote wind power and combat what some see as baseless claims making the rounds.

You can check out those arguments from offshore wind foe David Stevenson here.

Enjoy what is shaping up to be a nice weekend. This newsletter returns on Monday. – Doug Rainey, chief content officer.

 

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