Economics in the News – Dec. 9-15

Economics impacts our lives every day. Below are some of the top storylines from this past week in economic news.

• Former Federal Reserve Chairman Paul Volcker died earlier this week at the age of 92. Volcker, who served eight years as Fed Chairman under Presidents Jimmy Carter and Ronald Reagan. As USA Today penned, Volcker was influential in helping diminish the highest inflation rate ever in the United States, peaking at 15% in 1980. 

• Volcker elevated interest rates to historic highs and triggered a recession, as he relentlessly looked to curb inflation. The Associated Press details how Volcker was a transformative figure for the U.S. economy during his time as Federal Reserve chairman.
  
  
• The United States and China reached a first-stage trade deal last week, according to The Wall Street Journal. The deal calls for China to purchase more products from U.S. farmers and other exports. Meanwhile, the U.S. has agreed to halt new tariffs.
  
  
• U.K. Prime Minister Boris Johnson is coming off a decisive electoral victory last week. He won in a historic fashion, winning a majority of 80 seats in the Parliament. According to BBC, Johnson plans to move quickly in taking Britain out of the European Union, while promising to increase public spending.

• In a proposal set to make its way through Congress, federal workers will get 12 weeks of parental leave, according to NPR. 

• The bat that legendary baseball player Babe Ruth used to hit his 500th home run was auctioned over the weekend for more than $1 million, according to The Associated Press. Ruth is just one of 27 baseball players in MLB history to hit 500 or more home runs.