HubbardOBrienEconomics.com Blog

Image created by ChatGPT, as are the other images in this post. Technological breakthroughs are often embodied in machinery, equipment, or, as in the case of artificial intelligence (AI), software. For example, the Industrial Revolution of the late 1700s, which involved mass production of low-priced cotton textiles, was made possible by the development in England of large … Continue reading "AI o…

Supports: Microeconomics and Economics, Chapter 14, Section 14.2. Image created by ChatGPT An article in the Wall Street Journal discussed why the price of chicken in supermarkets has been falling. The article notes that, “Bigger chicken breeds and flocks not being decimated by disease over the summer have led to a glut in an industry that slaughters … Continue reading "Solved Problem: Too Much C…

Image created by ChatGPT Today (August 12), the Bureau of Labor Statistics (BLS) released its report on the consumer price index (CPI) for July. Lower energy and grocery prices contributed to a slight decline in the inflation rate in July compared with June. The following figure compares headline CPI inflation (the blue line) and core CPI inflation (the red line). Headline … Continue reading "As …

This morning (August 7), the Bureau of Labor Statistics (BLS) released its “Employment Situation” report (often called the “jobs report”) for July. The report showed a decline in employment.  The jobs report has two estimates of the change in employment during the month: one estimate from the establishment survey, often referred to as the payroll survey, and … Continue reading "Employment in July…

Supports: Macroeconomics, Chapter 14, Section 14.1, Economics, Chapter 24, Section 24.1, and Money, Banking, and the Financial System, Chapter 2, Section 2.1. Image created by ChatGPT A rare book dealer who often posts to YouTube made the following observation in one of his videos: “… thousands of years ago, they had the barter system where you could … Continue reading "Solved Problem: Is Using M…

Image created by ChatGPT The following was the first sentence of an article yesterday on axios.com discussing the market for beef: “Beef sales are plunging, but processors continue to raise prices as a yearslong cattle shortage strains the industry.” The sentence seems to be describing a paradox: Why would meat processors, such as Tyson, JBS, … Continue reading "Breaking News: Demand Curves Slope…

Image created by ChatGPT At the close of trading on Friday, July 31, the yield on the 30-year Treasury bond was 5.28 percent. As the following figure shows, that yield was the highest since July 2007, before the Global Financial Crisis and the Great Recession of 2007–2009. Note: As we discuss in Money, Banking, and … Continue reading "What Explains the Rise in 30-Year Treasury Yields?"

Image created by ChatGPT The Bureau of Economic Analysis (BEA) released two reports this morning (July 30): “GDP (Advance Estimate), 2nd Quarter 2026” and “Personal Income and Outlays, June 2026.” The BEA’s initial—or advance—estimate is that real GDP grew in the second quarter of 2026 at annual rate of 1.5 percent, down from an annual … Continue reading "New BEA Releases Show Slower Growth Than …

Fed Chair Kevin Warsh and colleagues discuss policy at the June FOMC meeting (Photo from federalreserve.gov.) There was some uncertainty as to whether at its meeting that ended today, the Federal Open Market Committee (FOMC) would leave unchanged its target range for the federal funds rate at 3.50 percent to 3.75 percent. As of yesterday, … Continue reading "FOMC Holds Target Rate Constant, with …

Image created by Lena Buonanno. Thoroughly revised with an up-to-date discussion of the Fed’s operating procedures and many new features, the new Fifth Edition is available now for fall course adoption.  Instructors can request an examination copy here.

Image created by ChatGPT Today (July 14), the Bureau of Labor Statistics (BLS) released its report on the consumer price index (CPI) for June. In May, higher energy prices caused by the conflict in Iran contributed to inflation increasing to the highest rate in more than three years. In June, as energy prices decreased, inflation experienced … Continue reading "CPI Inflation Comes in Below Expect…

Image generated by ChatGPT This morning (July 2)—one day early because tomorrow is a federal holiday—the Bureau of Labor Statistics (BLS) released its “Employment Situation” report (often called the “jobs report”) for June. The report showed a smaller than expected increase in employment.  The jobs report has two estimates of the change in employment during the … Continue reading "Weaker than Exp…

Image created by ChatGPT of the U.S. Supreme Court building The Federal Reserve Act states that a member of the Federal Reserve’s Board of Governors “shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.” In August 2025, President … Continue reading "Supreme Court Rules that Lisa Cook Can Remain on the …

Supports: Microeconomics and Economics, Chapter 6, Section 6.3, and Essentials of Economics, Chapter 7, Section 7.7. Image created by ChatGPT An article in the Wall Street Journal on June 25, noted that after Apple increased the prices of iPads and MacBooks, the price of its stock declined by 6.1 percent. That decline meant that the … Continue reading "Solved Problem: Higher Prices and Lower Prof…

Image created by ChatGPT of Alan Greenspan as a maestro Earlier this week, Alan Greenspan, former chair of the Federal Reserve passed away at the age of 100. Greenspan may have been the best-known Fed chair in history. People who follow the economics and business news know who Jerome Powell and Kevin Warsh are. But … Continue reading "Alan Greenspan, former Fed Chair, Dies at 100"

Image created by ChatGPT The Bureau of Economic Analysis (BEA) released two reports this morning (June 25): “GDP (Third Estimate), Industries, Corporate Profits, State GDP, and State Personal Income, 1st Quarter 2026” and “Personal Income and Outlays, May 2026.” The BEA revised upward its estimate of real GDP growth in the first quarter of 2026 … Continue reading "New BEA Releases Show Faster Gro…

Photo of Kevin Warsh from bloomberg.com via the Wall Street Journal It was a foregone conclusion that at its meeting that ended today, the Federal Open Market Committee (FOMC) would leave unchanged its target range for the federal funds rate at 3.50 percent to 3.75 percent. There was great interest, however, about whether at his … Continue reading "FOMC Holds Target Rate Constant as Warsh Promise…

Image generated by ChatGPT Today (June 10), the Bureau of Labor Statistics (BLS) released its report on the consumer price index (CPI) for May. As expected, higher energy prices caused by the conflict in Iran have continued to result in high rates of inflation. The following figure compares headline CPI inflation (the blue line) and core CPI inflation (the red … Continue reading "CPI Inflation Hi…

Image generated by ChatGPT People have collected sports cards for decades. For many years, the most sought-after and highest-priced example was a baseball card featuring Pittsburgh Pirates shortstop Honus Wagner. In the early twentieth century, baseball cards were often included in packs of cigarettes. In 1909, each pack of Sweet Caporal Cigarettes included a baseball card from what collectors … …