Business Updates

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy. The economy is healthy, but inflation is overshadowing growth Despite high interest rates and stubborn inflation, the economy is growing remarkably well. All the major indicators we use to gauge its health—and how families and businesses are faring—are strongly positive. Mortgage closing fees are in the hot seat. Here’s why feds are looking into them. The Consumer Federal Protection Bureau last week launched an inquiry into what the agency is calling “junk fees in mortgage closing costs.” These additional fees, involving home appraisal, title insurance and other services, have spiked in recent years and can add thousands of dollars to the final cost of buying a home. Fed dot plot is set to offer glimpse of rate-cut resolve Investors may glean more on the Federal Reserve’s resolve to ease monetary policy when US policymakers update their forecasts for interest rates Wednesday for the first time in three months. US home sales post second straight monthly drop; house prices accelerate U.S. existing home sales unexpectedly fell in April as higher mortgage rates and house prices weighed on demand, dealing another setback to the housing market. Report shows rent is unaffordable for half of renters as cost burdens surge to record levels The number of renter households spending more than 30 percent of their income on rent and utilities rose by 2 million in just three years to a record high of 22.4 million, according to America’s Rental Housing 2024, a report by the Harvard Joint Center for Housing Studies. Fed seen waiting to cut rates as job growth picks up A U.S. job market scorecard that exceeded all forecasts has undercut confidence over when, or even if, the Federal Reserve will begin easing policy this year, putting the focus for the policy outlook on next week’s Fed meeting and Fed Chair Jerome Powell’s own guidance. US states with the best economies in 2024 – and the worst The United States has the largest economy in the world, and each of its states and territories play a part in keeping its massive engine running. The states with the largest populations also contribute the most to gross domestic product, but a new study from WalletHub looked under the hood to gauge additional indicators of performance and strength. US business travel is back but it looks different, hotel CEOs say Business travel has returned to the United States, hotel executives at a New York industry conference said this week, as companies of all sizes are increasingly booking trips at higher levels and prices than before the pandemic. No-tariff shipments popular with Shein, Temu hit US customs speedbump A new U.S. crackdown on customs brokers handling billions of dollars in inexpensive online shopping orders from giants like China-linked Shein and Temu is likely to cause delivery delays and bottlenecks, industry experts said. US may revive some shut nuclear plants to help meet emissions goal, energy chief says The United States could revive some of its recently retired nuclear power plants to help meet rising demand for zero-emissions electricity, or add reactors to existing sites, Energy Secretary Jennifer Granholm said in an interview. Get in touch Contact us if you have any questions or want to discuss the next steps for your business.

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy. US small business sentiment rebounds in April U.S. small-business confidence increased in April and the share of owners planning to raise prices was the smallest in a year, but persistent labor shortages continued to exert cost pressures for owners, a survey showed on Tuesday. Are we getting a ‘hard landing’ after all? Is 2024 the year America gets the recession economists expected in 2023? It’s a growing concern. A “worse-than-expected” jobs report this month could signal an economic slowdown that “threatens to downshift the nation’s brisk economic growth,” said The Associated Press. Core inflation hit 3-year low in April—but remains well above historic target Inflation was less painful than expected in April, bolstering the case for the Federal Reserve to soon bring down interest rates as the U.S. economy tiptoes the path to a soft landing. Phoenix is beating the rest of the country on inflation — on paper anyway Consumer price increases in Arizona’s biggest city are within striking distance of the Fed’s 2% target. It’s largely thanks to cooling rents, which take awhile to turn up in federal data. IRS warns about more tax scams The IRS issued a consumer alert Tuesday about scams involving the fuel tax credit, the sick and family leave credit, and household employment taxes that it said have led thousands of taxpayers to file inflated refund claims. Who benefits from US tariffs on Chinese imports? Experts weigh in The trade war between the United States and China continued this week with its latest salvo – a move that comes amid a heated race for the White House. Small business optimism Small business optimism grew for the first time this year but inflation continues to be a top concern for business owners, data from the National Federation of Independent Business (NFIB) showed. IRS Interest rates The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2024. Podcast Episode of the Week Freakonomics Radio – Episode 584: How to Pave the Road to Hell the discussion revolves around the unintended consequences of well-intentioned policies. The episode explores historical examples and modern instances where efforts to solve problems inadvertently created new issues. It emphasizes the importance of considering potential negative outcomes when designing and implementing policies.  An example is the case of ethanol subsidies in the United States. These subsidies were intended to reduce carbon emissions and support the agricultural industry by promoting the use of ethanol as a biofuel. However, they led to unintended consequences such as increased food prices and questionable environmental benefits, highlighting the complexities and trade-offs in policy-making for business and environmental goals. Get in touch Contact us if you have any questions or want to discuss the next steps for your business.

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy. The U.S. economy’s soft landing is still on track Despite the recent string of disappointing macroeconomic data, these developments actually indicate the strengths of the U.S. economy rather than weaknesses. The economic pessimism in recent years has been largely based on a misunderstanding of the U.S. consumer, according to a recent article in the Harvard Business Review. These 2 charts show just how little faith Americans have in the economy Indicators be damned: US consumers are still gloomy about the state of the economy. In the latest University of Michigan survey, the consumer sentiment index dropped a whopping 13% from April, after staying roughly the same since January. The Social Security fix no one is talking about What if the traditional wisdom on how to fix Social Security no longer holds? The trustees who oversee the program issued their annual financial forecast on Monday, predicting that the combined retirement and disability trust fund reserves will be depleted in 2035 – one year later than forecast last year. How the U.S. economy adapted to 5% interest rates One year ago this month, the Federal Reserve pushed its target interest rate above 5% — a step that seemed sure to cause ripples across the corporate landscape and the global economy. To a surprising degree, though, the world has taken the onset of 5% rates in stride. Full employment, low inflation and a virtuous cycle in the American economy Until recently, the idea that the economy could simultaneously have low unemployment and low inflation seemed to be a fantasy. Conventional wisdom, after all, holds that when unemployment is low, businesses need to pay higher wages to attract workers, which pushes up the cost of goods and services and, ultimately, inflation. But that logic has been turned on its head. How to place or lift a security freeze on your credit report A credit freeze restricts access to your credit report. If you suspect your personal information or identity was stolen, placing a credit freeze can help protect you from fraud. Labor union push pits the United Farm Workers against a major California agricultural business In a meeting room at a hotel in California’s crop-rich Central Valley, a fight is taking place that could help shape the future of farm labor in fields that grow a chunk of the country’s food. The battle between a unit of the Wonderful Co. — one of the state’s most well-known farm companies that grows pistachios, pomegranates and citrus — and United Farm Workers — the country’s biggest farm worker union — comes after California passed a law in 2022 aimed at making it easier for agricultural laborers to organize. IRS adjusts HSA amounts for 2025 The Internal Revenue Service issued the annual inflation adjustments for health savings accounts in 2025 as prices continue to rise, albeit at a slower pace. IRS Tax Withholding Estimator helps ensure withholdings are correct for 2024 The IRS encourages taxpayers to use the IRS Tax Withholding Estimator to ensure they’re withholding the correct amount of tax from their pay in 2024. This digital tool provides workers, self-employed individuals and retirees with wage income a user-friendly resource to effectively adjust the amount of income tax withheld from their wages. Get in touch Contact us if you have any questions or want to discuss the next steps for your business.