Featured Post from University of Rochester

Not this time, but expect interest rates to get cut soon – our expert can explain why

Jun 20, 2019

2 min

It was all eyes on the Fed this week, but when it came to decide, Federal Reserve Chairman Jerome Powell held U.S. Interest rates steady and unchanged.

The pressure was on to lower the rates amid serious concerns that the current trade wars and tariff action could start impacting America’s economy and slow it down.

Narayana Kocherlakota, the Lionel W. McKenzie Professor of Economics at the University of Rochester wasn’t surprised by the June decision to remain steady. And with serving six years as president of the Federal Reserve Bank of Minneapolis, his expertise and perspective indicates lower rates will come at the next meeting.

“I am not expecting a change in policy, which means the interest rates should remain the same. What I am expecting is a lot of discussion, which takes place in secret, about cutting interest rates by a quarter percentage point at their next meeting in July. Why would they do that? The Federal Reserve is tasked with trying to keep inflation at 2 percent and keep unemployment low. Right now unemployment is about as low as it’s been in the past half-century, which is very good. Inflation remains lower than the Federal Reserve would like—it’s been below 2 percent for most of the last seven years. I think they’re mainly worried about risks. There are signs of risk around the world partly due to big variations in trade policy emerging from the White House. So, the Fed is thinking about cutting rates now in order to keep the economy as healthy as possible, if there’s any danger of a recession.” University of Rochester Newscenter.

Will lower rates really keep America’s economy humming?
Won’t lower rates impact the strong US dollar?
And if we are headed toward recession, what else can de done to turn the economy around?

There are a lot of questions – and that’s where our experts can help.

Dr. Narayana Kocherlakota was the President and CEO of the Federal Reserve Bank of Minneapolis from 2009-2015. As part of his responsibilities in that position, he served on the Federal Open Market Committee (FOMC), the monetary policymaking arm of the Federal Reserve System. He is currently a Lionel W. McKenzie Professor of Economics and is an expert in financial economics, interest rates and monetary policy. Narayana is available to speak with media regarding the economic effects of the shutdown – simply click on his icon to arrange an interview.

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Narayana Kocherlakota

Louis and Henry Epstein Professor of Business Administration at the Simon School of Business

Professor Kocherlakota's research includes theoretical and empirical contributions to many fields in economics

Central BanksU.S. Federal ReserveDynamic Games/ContractsFinancial EconomicsEconomics of Money and Payments

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Apr 28, 2026

2 min

Get Over It: Pluto Isn't A Planet!

Put down the protest signs already. Retire the “Save Pluto” pins. Step away from the planetary outrage. Seriously. So says University of Rochester astrophysicist Adam Frank in his latest column in Forbes. Frank explains that the real story behind Pluto being stripped of its planetary status in 2006 isn’t about what Pluto lost, but what scientists found. Pluto made news recently when NASA Administrator Jared Isaacman replied to a Florida girl’s handwritten plea to restore Pluto’s designation as a planet, saying he supported such a move. Frank has one word for Isaacman: Stop! “Now Isaacman seems like a good guy and I sure don’t want to make little kids cry,” Frank writes. “Still, there’s an amazing science reason why Pluto got kicked out of the planet club.” For decades, Frank explains, we thought the solar system ended with the nine familiar planets, with Pluto being the most distant. But beyond Neptune lies the Kuiper Belt, a vast expanse filled with icy remnants from the birth of the solar system. These objects are essentially the leftover building blocks of planets. Pluto, it turns out, is one of them. That matters because this cosmic debris holds crucial clues about how planets form. Studying Pluto and its neighbors helps scientists understand the origins of Earth and the potential for life elsewhere in the universe. So, Pluto isn’t an outcast; it’s a key witness to our cosmic history. It belongs to a newly understood class of worlds that are central to modern astronomy. Rather than mourn Pluto’s status and push for restoring its former title, Frank suggests we celebrate its reclassification as the moment astronomers realized the solar system is far richer than they had ever imagined. If you’re a journalist looking for an expert to talk about Pluto — or planets and worlds formerly known as planets — Frank is your scholar. He is a frequent contributor to the likes of CNN, The New York Times, The Atlantic, and MSNBC, and can help your audience make sense of our vast universe.

Apr 14, 2026

2 min

Energy Shocks, Consumer Pullback, and the Long Road Back

As Americans scale back spending on luxuries and some necessities — from dining out and live entertainment to home and auto maintenance — the ripple effects are being felt across the broader economy. Daniel Burnside, clinical professor of finance at the Simon Business School, says the trend reflects more than just belt-tightening and signals deeper structural pressures tied to energy markets. “Higher energy prices push inflation up and growth down, putting monetary policymakers in a bind,” Burnside says, explaining the current situation as being beyond a typical price spike. “This isn’t just a price shock, it’s a capacity shock,” he says. “You can’t just flip a switch back to normal because a lot of energy infrastructure has been destroyed. That distinction matters. Because energy costs are embedded in nearly every good and service, rising prices squeeze consumers beyond the gas pump. The result is reduced discretionary spending at venues like sporting and live music events, restaurants, and leisure destinations. Looking ahead, Burnside says a rapid rebound in discretionary spending is possible but unlikely. “If, by some miracle, energy prices quickly return to prewar levels, you would see a sharp run-up in discretionary stocks,” he says. “But that’s precisely because expectations are so low.” For now, markets are signaling that a swift return to pre-crisis conditions isn’t on its way, Burnside says. Until energy supply stabilizes, the pressure on both consumers and the businesses that rely on it is likely to persist. Burnside regularly fields inquiries from journalists looking for his insight on personal money matters and investing. Contact him by clicking on his profile.

Mar 26, 2026

1 min

Target Can’t Seem to Escape the Crosshairs

The on-again-off-again nationwide boycott of Target has the retailer’s new chief executive, Michael Fiddelke, officer facing relentless pressure from activists on both sides of the issue. David Primo, a professor of political science and business administration at the University of Rochester, says Fiddelke can’t seem to move Target from the crosshairs despite slashing prices on thousands of products and investing in stores, workers, and technology. “Target remains a battleground for activists on the left and the right, and its new CEO hasn’t yet figured out how to extricate the company from this role,” Primo recently told USA Today. “Fiddelke already faces a huge challenge in turning around a company with significant operational issues. This certainly doesn’t help matters.” Target has reported 13 straight quarters of sluggish sales. Company officials have admitted that shopper anger has contributed. Activists in Minneapolis, where Target is based, organized a nationwide boycott last year over the company’s rollback of diversity, equity, and inclusion policies. From church pulpits to community gatherings, the policy about-face was widely viewed as a betrayal of Black Americans who had propped up the retail giant’s bottom line. Primo studies corporate political strategies, among other areas, and regularly shares his insights with business journalists and political reporters. His essays have appeared in The New York Times and The Wall Street Journal, and he’s been interviewed by many radio and television outlets, including Bloomberg and National Public Radio. Contact him by clicking on his profile.