In the Midwest and elsewhere, state government financial support for higher education has been eroding. Public colleges and universities are increasingly being left to their own resources; this raises a number of issues for them and for the Midwest economy. In a major conference held here this week, Chicago Fed President Michael H. Moskow summed up one dilemma. “….universit... Read More

Last week, the Chicago Board of Trade (CBOT) became a publicly traded company. On the first day after offering its stock, its share price ended the day above $80, well above forecasts of a $45-50 value per share. The CBOT development was one of many suggesting that the prospects of Chicago area's futures exchanges have improved in recent years. But to what extent is the turnaround... Read More

Midwestern communities that host automotive plants are especially concerned at the recent bankruptcy actions of Delphi Corporation. Such concerns are not misplaced, since the geography and problems of Delphi's operations are similar to those of some other automotive plants. Delphi, the nation's largest auto parts supplier, filed for Chapter 11 bankruptcy on October 8. The bankrupt... Read More

Earlier this month, Mittal Steel USA announced it will locate its headquarters in downtown Chicago rather than in Northwest Indiana. Mittal USA employs 21,000 workers in 14 states. The parent company, Mittal, headquartered in London, is the largest steel maker in the world. Mittal's U.S. headquarters will employ only about 200 people. Even so, the company will reportedly receive $... Read More

As the water recedes and the human toll accumulates in the hurricane-impacted Coastal regions, discussion has turned to the economic impact. Many areas and communities immediately surrounding the Gulf Coast are experiencing increased business and real estate activity as evacuees try to refocus their lives and homes, even as local governments and charitable organizations struggle mightily ... Read More

Michigan's traditional heavy reliance on the domestic auto industry has been troubling its economy over the past five years. While GM and the other domestic auto makers have “kept America rolling” with continued auto sales and sales/finance incentives, the state of Michigan has shown the worst performance among the states. Michigan's unemployment is the second highest at 6.7 %; and it hol... Read More

The Chicago economy is expanding, but the pace of growth is disappointing compared with that experienced during the 1990s. This lagging performance raises some questions about the future. Will Chicago merely serve a supporting role as a services center for the surrounding Midwest, or can Chicago's businesses expand their reach to more rapidly growing national and global markets? R... Read More

Those who are interested in the prospects of Midwest rural areas will want to peruse the presentations from Dave Oppedahl's recent conference on “Ag Biotech and Midwest Rural Development.” Right now, the papers and presentations are posted. Dave will soon be summarizing the conference for an upcoming issue of Chicago Fed Letter. One topic of the conference was the rising prominenc... Read More

Hello midwesterners and those interested in the Midwest's economic growth and development. My name is Bill Testa, and this is an introduction to my Midwest Economy Blog. In this blog, I will offer some current information on the Midwest economy, as well as analysis of important public policy issues and even an occasional prediction or two. In this effort, I will be looking for tho... Read More