Must Read Money Stories for Friday, Aug. 26

by August 26, 2016

EpiPen maker controversy.

The maker of the emergency EpiPen allergy injection faced a wave of controversy this week after lawmakers and the public brought attention to the drug’s soaring cost. The price of the life-saving injection has jumped to $600 from $100 since it was acquired by Mylan NV in 2007. The drug maker on Thursday said it would cut the out-of-pocket costs for some patients, The Guardian reported. The company said it will offer savings cards that will cover up to $300 of the typical $600 cost for a pair of injectors.

World Bank’s Kim tapped for second term.

President Obama nominated World Bank President Jim Yong Kim for a second five-year term on Thursday. The New York Times reported staff members have repeatedly raised concerns about his leadership of the global institution. Obama’s nomination came two days after the World Bank board announced it was beginning to select its next president, inviting nominations from world leaders. The selection process could take several months.

Uber losses mount.

Global ride-sharing service Uber Technologies Inc. reported a $1.27 billion loss in the first half of the year, according to Bloomberg. People familiar with the company told Bloomberg that subsidies for Uber’s drivers are responsible for most of the losses. Uber is a private company. In 2015, Uber lost at least $2 billion before interest, taxes, depreciation and amortization.

Fed mistakes.

The Wall Street Journal on Thursday chronicled more than a decade of miscalculations by Federal Reserve officials, including a housing bubble that crashed the financial system and persistent slow growth in the Great Recession’s aftermath. The article argued the U.S. central bank has helped advance the rise of populists like Donald Trump and Bernie Sanders and distrust of institutions. The once-revered institution has fallen from public grace — and has been blamed by those on the left and the right for failing to prevent the financial crisis and foster global growth afterwards. Many economists, including former Dallas Fed president Richard Fisher, have warned that persistent low interest rates are adding to consumer discontent.