Ruling May Hurt Discount Pricing (06/28)
“ Bargain hunters may find fewer deals on high-end apparel, accessories and electronics following a Supreme Court ruling Thursday. The 5-4 decision overturned a 96-year-old law that prevented manufacturers from setting minimum retail prices.” Discuss why the Sherman Antitrust Act was passed by the U.S. Congress in 1890 (Act). Examine why the Supreme Court overturned the law when deciding on the Leegin Creative Leather Products vs. PSKS case (Opinion). Review antitrust enforcement highlights of the Department of Justice (Highlights). Discuss how antitrust enforcement activities may have helped to promote and protect the competitive process in our economy.

Fed Leaves Rates Alone Again (06/28)
" The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector.” What is the current market sentiment on the direction of short term interest rates for the remainder of 2007(Sentiment)? Examine short term interest rates since 2005 (Rates) and discuss how short term interest rates may affect economic activities (Affects). Explain why investors may use the yield curve as a reference point for forecasting interest rates and inflation (Curve).

Refineries Not Running At Full Tilt (06/20)
"U.S. refiners are producing far less gasoline than they are capable of making because of planned and unplanned maintenance.” Study the current refinery utilization and capacity data from the Department of Energy (Data). Discuss why Representative Bart Stupak, D-Michigan “suspects the oil companies are either limiting production or misreporting the numbers to lift the price at the pump” (Idle Refineries). Explain why public policy makers should take a “very skeptical view of future mergers” (Testimony).

Fed Reports Economy Picking Up Despite Housing Weakness (06/13)
" Reports from the twelve Federal Reserve Banks indicated that economic activity continued to expand from mid-April through May. ” Review the Beige Book summary which draws up anecdotal information on current economic conditions by District and sector. Determine if the Fed’s assessment that overall wage pressures did not increase while there were “significant” price increases for energy-related products is accurate (Prices). Discuss how continued weakness in the residential housing sector (Housing) may be affecting the overall economic performance (GDP).

April Trade Gap Narrows (06/08)
" The trade deficit shrank much more than expected in April to $58.5 billion, as the weakening U.S. dollar appeared to depress import demand by making overseas goods more expensive, a Commerce Department report Friday showed. ” Examine the April trade report from the Bureau of Economic Analysis and identify which sectors of the economy managed to increase their exports during the month (Report). Discuss how the weakening U.S. dollar may have helped to promote exports and depress imports (Dollar). Identify which economies are major trading partners of the U.S. (Partners). Discuss how China’s policy to “peg its currency’s value to that of the dollar at a rate that encourages a large bilateral surplus” may have affected the U.S. trade balance and the economy (China).

Productivity Growth Slows To 1 Percent (06/06)
"Worker productivity in the first quarter was much lower than original estimates, according to a government report Wednesday that was in line with the latest Wall Street expectations" Discuss how downward revisions to output growth lowered the first quarter labor productivity estimates (Revision). How do lower labor productivity rates may affect labor compensation (Affect)? Examine how labor productivity may also affect equity market performance and inflation in the economy (Relationship).

Employers Add 150,000 Jobs (06/10)
" The economy created 157,000 jobs in May, more robust growth than economists had expected, while the unemployment rate remained a low 4.5%. ” Review the current employment condition and identify which sectors or categories of the economy added jobs in May (Condition). Discuss why some believe that the employment condition is worsening in the U.S. (Analysis). Why is the labor market still going strong, while growth in real GDP has turned in only a “middling” performance (Puzzle)?

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