Economics in the News – July 20-26, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Newly appointed Federal Reserve chairman Kevin Warsh is faced with a high-profile decision. He was largely appointed by President Donald Trump because of Trump’s desire to lower interest rates. However, he has also stated a zero-tolerance policy for elevated inflation, which would lead to a decision to increase interest rates.
While many economists expect inflation to ease in the second half of the year, Warsh would be going against his own statement. Fed decision makers are split on whether to raise interest rates or holding them steady and taking a wait-and-see approach. Those who want to raise rates argue that elevated prices are putting strains on consumers and businesses. Those who want to hold interest rates are waiting for the latest data and wanted to be ready to act if inflation did not ease in the foreseeable future. [The New York Times]
o Paramount agreed to delay its high-profile merger with Warner Bros. Discovery until June 2027. The delay allows a lawsuit to play out in court, as state attorneys are seeking to block the deal. The lawsuit argues that combining the two would give Paramount too much leverage over the release of films and Paramount would become too dominant on basic cable.
A potential $111 billion merger would have a significant impact on Hollywood, as it would unite two major movie studios, streaming services HBO Max and Paramount+ and major networks that include CBS and CNN. Paramount argues that the combined company would strengthen its position and allow it to compete with the likes of YouTube and Netflix. [The New York Times]
o Interest rates on 30-year fixed rate mortgages rose to their highest level in nearly a year, averaging 6.58 percent. With 10-year Treasury yields reaching 10-year highs due to rising oil prices, that pushed the 30-year fixed rate higher.
The National Association of Realtors said sales of existing homes was down 2.4 percent in June. That comes on the heels of spring, which is typically the busiest time of year for home sales, agitating buyers due to elevated rates and uncertainty about the economy. The national median existing home price was a record $440,600 in June, marking a year-over-year increase of 1.8 percent. [The Wall Street Journal]
o Nursing is a field traditionally dominated by women, only one in eight nurses are men. But the department of Labor estimates that it could be one of the top professions for job openings over the next decade, projecting 189,000 per year.
As artificial intelligence (AI) is diminishing opportunities in traditional male-dominated fields such as manufacturing or software engineering, nursing for men has emerged as an alternative. Now, universities are beginning to appeal more to men for nursing degrees. University of Alabama at Birmingham is a national leader in drawing men to its nursing program. Nearly one in six students in the nursing program is a man, while nearly one in five faculty are men. Recent graduates are lining up jobs for their in-demand skills, while others in their classes are finding out first-hand how difficult the job market is. [NPR]
o The price to field a competitive roster in college basketball is getting more expensive. Recently, at the Peach Jam AAU tournament, The Athletic surveyed 25 high-major coaches. The consensus was that spending on rosters is increasing at an alarming rate. Some coaches guessed that several of the top players in the college game make more than entire team rosters did last year. Last season, Kentucky was believed to have the highest paid roster in the game at $22 million. This year, coaches suggest that multiple teams are spending to a $30 million level. Some coaches also believe that players are earning nearly $5 million.
Across the three top leagues in the sport – the SEC, Big Ten and Big East – spending nearly doubled, according to estimates. That comes a year following the start of revenue-sharing where schools could directly pay players in addition to NIL spending. Coaches estimate that spending in the SEC has risen to an average of $18 million, an increase from $9.7 million last year. Rosters in the Big East average $14.5 million for the upcoming season, an 81.3 percent increase from the $8 million cost a year ago. And the Big Ten, the average roster costs $14.3 million, compared to $8.5 million last year. The ACC had the lowest year-over-year increase among the top five leagues with the average costs of rosters rising to $11.5 million, compared to $8.2 million last season. [The Athletic]
