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Everyday Economics

The Center Square

Economist Dr. Orphe Divounguy and Chris Krug join forces to unravel the complexities of global markets, inflation, and everything else you need to know to navigate the economic world around you.

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26 episodes
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#573
October 1 · 9 min
Why High Interest Rates Are Putting Commercial Real Estate Under Pressure
Higher interest rates are creating a growing challenge for commercial real estate as loans mature and property values fall. On this episode of Everyday Economics, Chris Krug and Dr. Orphe Divounguy break down what happens when an office or apartment building owner has to refinance at today's higher rates. They discuss: Why higher rates can mean higher debt service and lower property values What happens when commercial real estate loans mature Why businesses are holding onto workers despite slo
#572
September 30 · 10 min
Americans Are Still Spending— But They’re Trading Down
Americans are still spending — but they’re changing where and how they spend. Consumer spending is up 4.5% from a year ago, but households are increasingly trading down to cheaper stores, lower-priced goods and more affordable housing. PhD economist Orphe Divounguy explains why that matters for the economy and for the Federal Reserve. More than half of new homes sold in August were priced below $400,000, compared with about 46% a year earlier. With mortgage rates rising above 7%, Divounguy exp
#571
September 23 · 11 min
Mortgage Rates Hit 7.2%— But Luxury Home Prices Are Still Surging
Mortgage rates are around 7.2% — and the housing market is increasingly splitting into two very different experiences. PhD economist Orphe Divounguy explains why higher rates are keeping many buyers on the sidelines while luxury housing continues to perform well. Builders are responding with major incentives, including an estimated $44,000 per home in rate buy-downs and closing-cost assistance to get buyers across the finish line. At the same time, inventory is rising in parts of the country, gi
#570
September 21 · 11 min
The Fed Just Raised Rates — And America’s “Two-Speed Economy” Is Getting Worse
The Federal Reserve just raised interest rates for the first time since 2023, bringing the target range to 3.75%–4%. But what does the rate hike actually mean for Americans? Chris Krug and PhD economist Orphe Divounguy examine the Fed’s decision and the growing divide between savers and borrowers. Higher-income households with homes and investments may benefit from higher rates, while younger households, renters and borrowers face higher costs for credit cards, auto loans and mortgages. Divoungu
#569
September 16 · 11 min
The Fed May Raise Rates— But Can the Economy Take It?
The Federal Reserve faces a major decision this week: raise interest rates or hold them steady as energy prices push inflation higher. Markets are pricing in a strong chance of a quarter-point rate hike, but PhD economist Orphe Divounguy argues the Fed should hold. His concern: the current inflation increase is being driven largely by a supply shock in energy, while the underlying economy is showing signs of weakness. Core inflation is around 2.4%, wage growth is easing, hiring remains near a
#568
September 14 · 9 min
Trump Promised Lower Prices — What Can a President Actually Control?
President Trump made promises to lower prices on everything from gas and groceries to electricity, mortgages, prescription drugs and childcare. But how much control does a president actually have over the prices Americans pay? Chris Krug and PhD economist Orphe Divounguy break down eight major price categories and examine what drives them — from energy costs and supply shocks to interest rates and federal policy. Gas, beef, groceries, electricity and childcare have all become more expensive, w
#567
September 10 · 10 min
America Is Spending Billions on AI... Where’s the Productivity Payoff?
America is pouring money into artificial intelligence — but the productivity gains have yet to fully show up in the economy. Employers added 162,000 jobs in August and unemployment held at 4.1%, but PhD economist Orphe Divounguy says the latest labor market data look more like a stabilization than a true rebound. Hiring remains weak, real wages are falling, long-term unemployment is rising, and the labor force is nearly a million workers smaller. At the same time, businesses are making massive
#566
September 5 · 10 min
The AI Boom Has a $40 Trillion Problem
The U.S. economy is making a massive bet on artificial intelligence, pouring capital into data centers, chips and power infrastructure — much of it financed with debt. But the productivity payoff investors are expecting has yet to show up in the broader economic data. Economist Orphe Divounguy explains why AI productivity growth is becoming less of an upside surprise and more of a requirement for the economy to justify the enormous investment. With roughly $40 trillion in government debt and re
#565
September 4 · 9 min
Home Builders Are Cutting Prices — But Buyers Still Can’t Afford Homes
Home builders are cutting prices and offering incentives, but buyers are still struggling to get into the housing market. New home sales fell to a 607,000 annual pace in July, while housing inventory jumped to 9.6 months of supply — the highest level since January. Builders are responding with rate buy-downs, closing-cost assistance and price cuts averaging about 6%. PhD economist Orphe Divounguy explains why the housing market is increasingly split into winners and losers, with luxury homes ho
#564
September 3 · 11 min
The Fed Says the Economy Is Strong but the Data Tell a Different Story.
The economy may look strong on the surface, but a closer look at the numbers reveals a much narrower and weaker expansion. In his first Jackson Hole speech, Fed Chair Kevin Warsh pointed to a 4.1% unemployment rate, strong business investment and rising corporate profits as signs of a resilient economy. But much of that growth is being driven by the massive AI buildout, while housing, construction and other parts of the economy continue to struggle. PhD economist Orphe Divounguy explains why th
#563
August 28 · 10 min
Waiting to Buy a Home Could Cost You Hundreds More Each Month
Mortgage rates could remain elevated as the bond market does the Federal Reserve’s work for it, keeping borrowing costs higher for consumers and businesses. Economist Orphe Divounguy explains what rising Treasury yields mean for mortgage rates, credit cards and the housing market. Homebuyers waiting for lower rates may be paying a price for holding off. Divounguy notes that someone who bought a typical U.S. home when mortgage rates were around 6% in February would have saved roughly $146 a mont
#562
August 26 · 8 min
Inflation Is Squeezing American Households and Savings Are Taking the Hit
American households are feeling the squeeze as inflation continues to push up the cost of everyday life. New personal consumption expenditures data shows income is finally growing faster than spending, but consumers are still spending more than their inflation-adjusted incomes and drawing down savings to keep up. In this episode of Everyday Economics, Chris Krug and PhD economist Orphée break down what the latest economic data means for American families — from healthcare and groceries to housin
#561
August 19 · 7 min
Only AI and Healthcare Are Creating Jobs Right Now
Job growth has slowed to roughly 34,000 jobs added per month — less than a fifth of the typical expansion-era pace of about 186,000 per month. Ph.D. economist Orphe Divounguy joins talks with Greg Bishop for Everyday Economics to break down what's driving the slowdown and what to watch for this week, including FOMC meeting minutes due Wednesday. Divounguy notes business investment growth is concentrated in AI-related sectors and data center construction, with hiring outside AI, healthcare, and
#560
August 14 · 9 min
Government Spending Is Costing You: The 3 Ways Washington’s Debt Comes Home
Government borrowing is never free — and taxpayers ultimately pay the bill. The Center Square publisher Chris Krug and PhD economist Orphe Divounguy break down the three ways government debt can hit American households: higher taxes, higher interest rates and higher inflation. The discussion examines why massive government borrowing can put upward pressure on Treasury yields, mortgage rates, car loans and business borrowing — while rising interest costs consume an increasingly large share of f
#559
August 11 · 9 min
The Job Market Is Stuck: Why 23,000 Jobs Were Lost in July
The U.S. job market isn't collapsing — it's stuck. July payrolls fell by 23,000, while unemployment held at 4.1%. But deeper revisions to May and June erased more than 100,000 previously reported jobs, raising bigger questions about the strength of the labor market. On this episode of Everyday Economics, Chris Krug and PhD economist Orphée Divounguy break down what the latest jobs numbers really mean for workers, businesses and the U.S. economy. They discuss: Why the July jobs report may be less
#558
August 7 · 48 min
Illinois Lawmaker Faces House Investigation After Federal Fraud Charges | The States
Illinois Democratic State Rep. Carol Ammons is facing a bipartisan Illinois House investigation after being federally charged with wire fraud and making false statements, with the special committee examining whether there are grounds for discipline or removal while Ammons maintains her innocence. Ammons and her husband, Aaron Adam Ammons, have pleaded not guilty to the federal charges, with a trial scheduled for September. Prosecutors allege the case involves nonprofit contracts and questions s
#557
August 6 · 45 min
Fed Holds Rates: Why Homes Keep Getting Less Affordable
The Federal Reserve kept interest rates unchanged—but that doesn't mean borrowing is getting any easier. In this episode of Everyday Economics, Greg Bishop sits down with PhD economist Orphe Divounguy to explain why mortgage rates remain elevated, what it means for first-time homebuyers, businesses looking to expand, and taxpayers navigating an increasingly expensive economy. Topics include: Why mortgage rates remain near 7% The end of the era of cheap money Housing affordability and first-ti
#556
August 4 · 9 min
Fed Shocks Markets Why Interest Rate Hikes May Be Back on the Table
The Federal Reserve kept interest rates unchanged for a fifth straight meeting—but the real story wasn't the decision itself. It was the message. In this episode of Everyday Economics, Dr. Orphe Divounguy explains why markets reacted so strongly after the Fed abandoned forward guidance, why Treasury yields surged to their highest levels since 2007, and why some Federal Reserve officials are now calling for higher interest rates—not cuts. What does this mean for inflation, taxpayers, businesses
#555
July 28 · 8 min
Will the Fed Raise Interest Rates Again? Inflation, Jobs & the Economy Explained
Inflation remains one of the biggest financial challenges facing American families, and the Federal Reserve may not be done fighting rising prices. In this episode of Everyday Economics, Greg Bishop and economist Orphe Divounguy, Ph.D. explain why a stronger labor market has shifted the Federal Reserve's focus away from unemployment and back toward inflation.
#553
July 24 · 8 min
Gas Prices Are Hiding Inflation... But It Won't Last
Gas prices posted their biggest monthly decline since 2020, giving Americans temporary relief at the pump—but is it enough to keep inflation under control? In this episode of Everyday Economics, Chris Krug and economist Dr. Orphe Divounguy explain why cheaper gasoline is helping consumers continue spending, why rent prices may be about to rise again, and how Middle East tensions could send energy prices higher. They also discuss what the latest CPI data really means, whether inflation is actual

Showing 1–20 of 26 episodes