Business Update – December 20, 2023

Business Update – December 20, 2023

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Fed keeps interest rates flat again—but barely budges on 2024 rate cut forecasts

The Federal Reserve opted to hold interest rates at the same level they’ve sat since July, as the central bank’s impactful rate-hiking cycle appears all but over, though the Fed remains coy about doing a complete 180 degree turn.

US business activity picks up in December- S&P Global survey

U.S. business activity picked up in December amid rising orders and demand for workers, which could further help to allay fears of a sharp slowdown in economic growth in the fourth quarter.

Majority of Americans feel US economy is in recession: survey

The U.S. economy may not technically be in a recession, but most Americans believe it is. That’s according to a recent survey conducted by Bankrate, which found 59% of U.S. adults feel like the economy is in a recession, defined by two consecutive quarters of negative growth.

Holiday debt hangover poised to be ‘particularly nasty’ this year, analyst says

While retail sales are strong, typically an indication of a healthy consumer, an industry economist is deeply concerned about how consumers will pay it all off when the bill comes. Bankrate senior industry analyst Ted Rossman’s concerns were heightened, in particular, after noticing an uptick in usage for buy now, pay later (BNPL) services as consumers battle growing debt obligations.

Federal Reserve issues FOMC statement

Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

US public’s downbeat view of economy is real, Chicago Fed research shows

Whether it’s the “collective trauma” cited by the American Psychological Association (APA) or the bad “vibes” noted by internet analysts, there has been a clear break between the U.S. economy’s performance and public attitudes about it, according to new research from the Chicago Federal Reserve.

What the billion-dollar battle over bankrupt freight company Yellow means to truckers and the economy

Executives from the bankrupt trucking company Yellow turned down a billion-dollar bid from investors on Thursday that could have resurrected much of the iconic freight company’s network. But the group of investors led by trucking executive Sarah Riggs Amico vowed to continue, hoping that in the end the courts and the Treasury Department allow them to prevail.

How many times will the Fed cut rates? Here’s what Wall Street expects in 2024.

Since its last interest rate hike in July, it seems the Fed has made solid progress in lowering inflation without hurting the labor market and broader economy. This has spurred many analysts on Wall Street to forecast significant interest rate cuts next year.

U.S. economy will pull off soft landing in 2024, CBO projects

The U.S. economy is on track to avoid a recession next year as inflation returns to normal, according to new economic projections released by the Congressional Budget Office.

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The Weekly Digest will be taking a break for 2 weeks.  See you back in 2024!   Contact us if you have any questions or want to discuss the next steps for your business.

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