Global Economy, Money & Finance, Currency, Government Finance, Inflation
For only the second time in a decade and the first time in a year, the Federal Open Market Committee, the policymaking body of the Federal Reserve, has elected to increase the target range for its influential federal funds rate by 25 basis points to 0.50% to 0.75%.
After multiple holdups, a new trade agreement has been reached between the EU and Canada. The Comprehensive and Economic Trade Agreement (CETA), for which negotiations began in 2009, was signed on October 30 after the EU bridged differences among some constituencies.
The U.S., meanwhile, has not concluded a trade deal since 2012, despite having two in the works for years. What’s holding them up?
Relatively strong post-recession employment growth is not a statistical anomaly, though only a small portion of the gain is coming from internet and telecommunications jobs. GDP is underestimated, but it is consistently biased, and the gig and free economies are too small to explain the productivity gap. Rather than blaming statistics, analytical effort is better spent determining the root causes for slow productivity growth.
Risk aversion, high unemployment, growth slowdowns, recessions, and geopolitical crises in key global economies are just a few of the factors holding back global growth. Overall, tighter financial conditions are leading to stock market corrections and a loss of confidence.
The Department of Labor’s final rule on overtime regulations will influence how an estimated 4.2 million American workers are paid during the first year of implementation, which starts December 1, 2016.
Global Economy, Competitiveness, Economic Environment, Labor, Money & Finance, GDP
When discussing employment data, it is imperative to remember that manufacturing is more productive than other sectors. In my report, I note that it takes about 5.8 full-time equivalent manufacturing jobs to achieve $1 million in value-added, versus 7.7 for both transportation and services and 16.9 for retail trade.