Risk Management
Fed's Williams: Policy Remains Restrictive, Labor Market Shows Signs of Weakness
New York Fed President Williams said on Monday that the U.S. labor market is softening, while monetary policy remains in a restrictive range, exerting downward pressure on inflation. He also noted that tariffs have had less impact on inflation than expected, and core inflation is declining slowly. Cleveland Fed President Hammack and St. Louis Fed President Musalem expressed concerns about a rebound in inflation, advocating for maintaining a restrictive policy stance.
U.S. Chamber of Commerce: New $100,000 H-1B Visa Rule Will 'Hinder Economic Growth'
The U.S. Chamber of Commerce on Friday urged the Trump administration to revoke the newly added $100,000 fee for H-1B visas, warning that the policy would 'hinder economic growth.' In a letter to Commerce Secretary Howard Lutnick, the Chamber's chief policy officer Neil Bradley noted that the high visa costs would drive some business functions overseas, causing significant harm to small and medium-sized enterprises and startups. The Chamber also suggested that the government work with Congress to reform the H-1B program rather than unilaterally imposing fees.
Consumer spending remains stable despite rising prices and cooling job market
U.S. consumer spending rose 0.4% month-over-month in August, matching July's pace, even as inflation stayed above the Fed's 2% target and the unemployment rate climbed to 4.3%. Consumer confidence dipped due to price pressures and job market concerns, but some officials believe the economy remains resilient.
Rising Number of 'Mega-Bankruptcies': Tariffs and Policy Shifts Add New Pressure
Cornerstone Research, an economic and financial consulting firm based in San Francisco, reported this week that total corporate 'mega-bankruptcy' filings with assets exceeding $1 billion in the 12 months through June increased by approximately 33% year-over-year to 32 cases, above the annual average of 23 from 2005-2024. The report noted that beyond inflation, high interest rates, and pandemic aftershocks, policy changes and regulatory uncertainty are emerging as new triggers for corporate distress.
CFO Survey: Tariff-Driven Price Pressures Expected to Extend into 2026
The latest quarterly surveys from Duke University's Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta show that chief financial officers (CFOs) expect tariffs to significantly impact price growth at their organizations in 2025 and 2026. The surveys indicate that without tariffs, price increases would be about 30% lower in 2025 and about 25% lower in 2026. Despite rising overall optimism about the economy, tariff concerns remain real and widespread.
Fed Chair Powell: Policy Focus Should Shift to Labor Market While Remaining Vigilant About Inflation Upside Risks
Federal Reserve Chair Jerome Powell said on Tuesday that the central bank should place greater emphasis on solidifying the labor market rather than focusing solely on price stability, while also noting the dual risks of rising unemployment and higher inflation. Powell stated that tariffs, the highest since 1933, have pushed inflation up by about 0.4 percentage points, while average monthly job gains since June have been only 29,000. He acknowledged that "two-sided risks mean there is no risk-free path" and called for policy to shift from "fixating on inflation" to "a more balanced approach."
VikingCloud Survey: Nearly Half of Cybersecurity Leaders Did Not Report Major Incidents
A survey by cybersecurity firm VikingCloud found that nearly half (48%) of cybersecurity leaders did not report "major" cybersecurity incidents to senior management or the board over the past year, mainly due to fears of punitive responses from leadership and the board (40%) and financial or reputational harm from public disclosure or regulatory consequences (44%). Experts note that companies should tailor incident response plans and cultivate a safe reporting culture.
Fed Governor Milan Calls for Significant Rate Cuts to Avoid Unemployment Risks
Federal Reserve Governor Stephen Milan spoke at the Economic Club of New York on Monday, dismissing concerns about tariff-induced inflation and calling for two 50-basis-point rate cuts next quarter to prevent the unemployment rate from climbing. He argued that tariff revenue, tax policy, and immigration controls may have lowered the neutral rate, paving the way for rapid easing. Meanwhile, St. Louis Fed President Musalem emphasized that there is limited room for further easing.
Social Media Remarks Trigger Chain of Dismissals, Urgent Need for Improved Corporate Policies
Over the past 10 days, employees at ABC, MSNBC, The Washington Post, and several hospitals, airlines, and universities have been successively fired or suspended for commenting on the fatal shooting of conservative figure Charlie Kirk. Experts say this series of events reminds employers of the need to prioritize the development and enforcement of social media policies, while carefully addressing state laws protecting employees' off-duty conduct, collective activity rights under the National Labor Relations Act, and the clarity and consistency of policy language.
CEO Confidence and Capital Expenditure Plans Rebound: Business Roundtable Survey
A survey released Thursday by the Business Roundtable showed that the CEO Economic Outlook Index rose to 76, with capital expenditure plans rebounding, but hiring plans remained largely unchanged, reflecting continued labor market weakness. Meanwhile, a global survey by EY-Parthenon also showed a rebound in CEO confidence, with most planning to increase capital investment and focus on localization of operations.