Liberty Street Economics (NY Fed)

Rising Employee Health Insurance Costs May Dampen Wage Growth

The Federal Reserve Bank of New York's Liberty Street Economics published an analysis on March 4, 2026, indicating that rising employee health insurance costs are dampening wage growth. Businesses reported that absent these cost increases, they would have raised wages by an additional percentage point on average.

Firms' Inflation Expectations Return to 2024 Levels

The New York Fed's Liberty Street Economics blog published an analysis indicating that firms' inflation expectations have moderated to 2024 levels. Despite increased cost pressures and price hikes in 2025, particularly in the manufacturing sector, firms anticipate inflation of 3 percent in the year ahead, with longer-term expectations remaining anchored.

New York Fed DSGE Model Forecast - March 2026

The Federal Reserve Bank of New York released its March 2026 DSGE model forecast, updating economic projections. The forecast indicates more robust growth in 2026, driven by stronger investment, and more persistent inflation, attributed to cost-push shocks.

China's Electric Technology Trade

The New York Fed's Liberty Street Economics published an analysis on China's electric technology trade. The article discusses how government industrial policies have led to significant growth in China's electric vehicle and battery exports, contributing to its trade surplus, while solar panel exports have been impacted by falling prices.

Sports Betting Prevalence Affects Credit Reports Significantly

A recent analysis by the NY Fed's Liberty Street Economics highlights the significant impact of legalized sports betting on consumer credit reports. The study found that while participation is relatively small, sports betting legalization is associated with a notable increase in credit card delinquencies, with spillover effects into non-legalized neighboring areas.