Economics in the News – Jan. 5-11, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Venezuelan President Nicolás Maduro’s capture has brought the oil industry in Venezuela into focus. It has for more than a century been at the center of debate and undergone tumultuous changes. Venezuela’s modern oil industry began in 1914 with the discovery of some of the world’s largest oil fields. That drew the attention of oil companies and by 1928, Venezuela was the largest oil exporter in the world. In the 1940s, the Venezuelan government levied oil companies with a 50 percent tax on oil profits they made from operating in the country. In the mid-1970s, Venezuela opted to nationalize its oil industry, seeking to assert control over the country’s natural resources. That created the state-owned Petróleos de Venezuela which lifted the country to one of the highest standard of livings in the world in the 1980s. That impacted American companies, such as, Exxon, Gulf, Mobil, Texaco, Chevron and Arco, who controlled more than 70 percent of crude oil production in Venezuela.
In the 1990s, Venezuela’s state-owned solution began having trouble with technical ability and resources to extract oil, so Venezuela started to reverse course and invite back private companies. In the mid-2000s, the Venezuelan government demanded that companies reduce their stake in the country’s projects without compensation, which led to several American companies fleeing Venezuela and suing the government. In 2017, the Petróleos of Venezuela suffered a crisis due to global oil prices crashing in 2014 due to overproduction. That led to inflation, hunger, health care issues, and Venezuelans fleeing the country. In recent times, oil production in Venezuela has hit all-time lows. In response to Maduro’s capture, President Donald Trump has said he wants American oil companies to return to Venezuela. However, leaders of those companies have stated that it would take significant investment to fix the country’s infrastructure. [The New York Times]
o President Donald Trump is seeking to cap credit card interest rates at 10 percent for one year. In order to make such a policy, it would typically require congressional approval. According to Bankrate.com, the typical interest rate on a credit card is around 20 percent. Experts suggest that Trump could be looking to boost his approval rating in time for this year’s midterm elections. His approval has fallen over his economic policies with many Americans struggling to keep up with the cost of living.
The Trump administration got rid of former President Joe Biden’s policy that sought to cap credit card late fees to $8. In addition, the Trump administration attempted to close the Consumer Financial Protection Bureau – the nation’s top consumer finance watchdog. [The New York Times]
o President Donald Trump’s housing proposals seek to help buyers and lower mortgage rates. He announced intentions to ease the competition for first time homebuyers by banning institutional investors. In addition, he announced that he would direct Fannie Mae and Freddie Mac – government-backed mortgage-finance companies – to buy $200 billion in mortgage bonds. As a result, the average rate for a 30-year fixed rate mortgage fell to its lowest level since 2023.
However, the United States still faces a significant shortage of homes nationwide, so experts caution that increasing the supply of homes is essential to fixing the affordability of home buying. In addition, Trump’s proposals have raised questions in terms of implementation with congressional approval needed. In addition, if Trump’s demands are granted, it could increase demand which could push prices higher. [The Wall Street Journal]
o More workers are taking on part-time work or settling for positions in order to make ends meet. Those holding multiple jobs climbed to its highest level in 25 years – 9.3 Americans – according to the Department of Labor. The latest data reflects the government shutdown last fall when many government workers were furloughed and had to pick up a side gig in order to account for lost pay.
However, economists are still concerned. The number of Americans with two full-time job increased 18 percent year-over-year. In addition, companies are showing signs that they prefer to cut expansion projects and not bring on new hires instead of layoffs of current employees. [The Washington Post]
o The Department of Justice subpoenaed the Federal Reserve and chair Jerome Powell over his testimony over the Fed’s building renovations. Powell testified last June before the Senate Banking Committee about the Fed’s $2.5 billion renovation of two office buildings. The weekend subpoenas mark the latest chapter in an ongoing feud between President Donald Trump and Powell, as the President has repeatedly attacked the Fed for not lowering its key interest rate as swiftly as he’d like.
Powell has said that the subpoenas are meant to undermine the Fed’s independence when it comes to setting rates. Experts warn that the subpoenas could renew fear from global investors’ confidence in US Treasuries of the Fed’s independence from day-to-day politics. Powell’s term as Fed chair – a position he was appointed to by Trump in 2017 – ends in May with a potential replacement yet to be named. [The Associated Press]
