High inflation is diminishing U.S. consumer purchasing power and may soon exact a cost from the nation’s strong economic rebound. New data this week added pressure on the Federal Reserve to move more quickly, and perhaps more forcefully than planned, to hike interest rates. Supply chain issues, a key part of the inflation conundrum, have one of Wall Street’s biggest names warning that the world is “out of everything.” The company that makes Dove soap and Ben & Jerry’s ice cream contends it faces a huge increase in the cost of raw materials. Andrea Felsted writes in Bloomberg Opinion that consumers are going to start trading down, shopping around—and cutting back.

After almost a year of isolating itself from the rest of the world, under-vaccinated Hong Kong is again mired in coronavirus misery. In Canada, protests by anti-vaccine truckers have gained adherents elsewhere, but authorities may be about to crack down. U.S. officials warn the protests are already hampering America’s automakers, and that copycats could show up outside the Super Bowl in Los Angeles on Sunday.

The U.S. seized about $3.6 billion in Bitcoin stolen during a 2016 hack of the Bitfinex currency exchange, and charged a Manhattan couple with conspiring to launder the cryptocurrency. Ilya Lichtenstein and Heather Morgan were known for their colorful social media accounts, with Morgan describing herself as the “crocodile of Wall Street.” Justice Department officials said they plan to help victims reclaim their losses.

Heather Morgan, left, and her husband, Ilya Lichtenstein, right, with their attorney in federal court in New York.

Illustration: Elizabeth Williams/AP

“Where’s Peng Shuai?” Questions about the Chinese tennis star’s safety have continued during the Winter Games in Beijing. She emerged this week, denying she has faced limitations on her movements. But her interview with a French sports daily was attended by a Chinese Olympic official. The International Olympic Committee faces another crisis: what the positive drug test of a 15-year-old Russian skater tells us about the organization’s transparency.

Elon Musk has been a loud critic of lidar technology, calling it a “fool’s errand.” But his stance has put him at odds with several competitors. Lidar is commonly used by companies developing mobility services for fully self-driving vehicles, but it’s also being used in run-of-the mill safety features. 

Two hundred pairs of sneakers created by the late fashion designer Virgil Abloh sold for $25.3 million during an online auction at Sotheby’s, smashing an estimate of about $3 million. The special edition “Air Force 1” sneakers were the first collaboration between Nike and French fashion house Louis Vuitton, where Abloh was artistic director. 

• The Super Bowl illustrates how socialism lives in U.S. sports.
• German Chancellor Olaf Scholz travels to Ukraine and Russia.
• Walmart earnings will shine a light on supply chain snarls.
• U.K. wage data shows how much workers are seeking in raises.
• The Singapore Air Show will give a travel outlook for this year.

Winter Games Highlight China’s Smog Problem

When Eileen Gu won a gold medal at the Beijing Olympics, her performance drew attention to the unusual surroundings. What was a snow-covered ski ramp doing alongside gigantic furnaces and cooling towers? The venue is adjacent to a decommissioned steel factory, once a source of national pride—and a major contributor to Beijing’s legendary smog. How a massive polluter became an Olympic venue is a story of China’s struggle to fight air pollution.

Eileen Gu performs a trick during an event at the Winter Olympic Games on Feb. 8

Photographer: Justin Setterfield/Getty Images AsiaPac

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