Economy
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Struggling Regional Small Businesses Deeply Pessimistic About 2026 Prospects
Will Aarons and Asani Sarkar We recently updated the suite of indicators describing the performance of small businesses in the…
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The Unintended Effects of Interest Rate Caps: Credit Rationing for Risky Borrowers
Rajashri Chakrabarti, Gabriel Leonard, Donald P. Morgan, Thu Pham, and Lee Seltzer In imperial China, 3 percent was the maximum…
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The Unintended Effects of Interest Rate Caps: Credit Reallocation to Safer Borrowers
Rajashri Chakrabarti, Gabriel Leonard, Donald P. Morgan, Thu Pham, and Lee Seltzer Several states have recently capped consumer loan rates…
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Food Insecurity and Consumer Pessimism
Gizem Kosar, Ishva Mehta, and Wilbert van der Klaauw Current discussions regarding a bifurcated U.S. economy highlight the increasing economic…
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AI’s Macroeconomic Challenges and Promises
Simone Lenzu In the third quarter of 2025, America’s largest tech firms for the first time spent more on capital…
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Federal Student Loan Defaults Return After Pandemic Pause
Zara Jacob, Donghoon Lee, Daniel Mangrum, Joelle W. Scally, and Wilbert van der Klaauw During 2026:Q1, household debt balances increased…
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Same Shock, Different Roads? A K-Shaped Pattern at the Pump
Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim Pinkovskiy In March 2026, energy prices surged to a four-year high, driven…
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Use of Gen AI in the Workplace and the Value of Access to Training
Ali Hashim, Gizem Kosar, and Wilbert van der Klaauw The rapid spread of generative AI (AI) tools is reshaping the…
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Bank Failures: The Roles of Solvency and Liquidity
Bank Failures in the United States, 1863–2024 Source: “Bank Failures: The Roles of Solvency and Liquidity,” Correia, Luck, and Verner…
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The R*–Labor Share Nexus – Liberty Street Economics
Sophia Cho and John C. Williams Over the past quarter century, the U.S. economy has experienced significant declines in both…
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