Articles from
Dallas Fed Economics providing critical insights on trade, immigration, and other major international issues, along with in-depth analysis of monetary policy challenges affecting the U.S. economy and its deep financial and economic ties with Mexico.
Expiring solar tax credits shine a light on benefit inequities
The One Big Beautiful Bill Act, a broad package of federal spending and tax policies signed into law in July 2025, spells trouble for the residential solar industry.
November 20, 2025
Transfer payments, household savings play key roles in growing U.S. deficit
While recent levels of government borrowing have been high, private savings by U.S. residents have been elevated as well. As a result, overall borrowing for the entire U.S economy has been remarkably stable.
November 18, 2025
Mexico’s economy surprises to the upside, but outlook is weak
The Mexican economy grew during the first half of 2025, surprising analysts who had anticipated a recession. However, the outlook is weak, with the consensus forecast implying economic slowdown during the second half.
October 16, 2025
Payment system design can encourage intraday liquidity efficiency
Efficient allocation of bank reserves improves central bank balance sheet efficiency. Frictions in such redistribution can affect monetary policy implementation.
October 02, 2025
Central bank swaps offer dollar crisis lifeline to non-U.S. banks
Starting in late 2007, the Federal Reserve, in partnership with a few major foreign central banks, began offering central bank dollar liquidity swap lines as an important liquidity backstop.
September 30, 2025
Are trade deficits good or bad, and can tariffs reduce them?
Typically, trade deficits are viewed through a lens of exports and imports, with the latter exceeding the former. While that is a useful exercise, it’s also helpful to examine deficits through a macroeconomic lens.
September 04, 2025
Bubble thought: What beliefs can reveal about housing market risks
Survey-based forecast data on home price growth are a surer indicator of housing market exuberance than traditional valuation ratios, such as price-to-income or price-to-rent.
September 02, 2025
Middle East geopolitical risk modestly affects inflation and inflation expectations
In Depth: While hostilities between Iran and Israel ended quickly in June 2025 without a major oil supply disruption, it is worthwhile to explore the impact on inflation and inflation expectations if this geopolitical event had turned out differently.
August 21, 2025
Texas firms open to AI as tariff work-around strategy
Firms are adopting AI and automation to offset rising tariff costs and shrinking margins, aiming to boost productivity and reduce labor needs amid economic challenges.
July 17, 2025
Declining immigration weighs on GDP growth, with little impact on inflation
In Depth: Unauthorized immigration surged sharply in 2021–24 but has since declined abruptly with negative implications for economic growth.
July 08, 2025