What trends might be changing accounting as we know it? Read on for the latest news, curated by analyst Bandita Awasthi.
Fed cuts rates for the third time, GDP growth falls to 1.9% in Q3, and more accounting news
A trade deal between the United States and China will be reached soon, according to the Trump administration, but the Dow has fallen 200 points as Chinese officials express some doubts. Bloomberg reports fears among some in China that the U.S. could pull out of the deal in phase one, which covers 60% of the trade agreement. This part of the deal, which was to be signed later in November, has been delayed because of unrelated circumstances in Chile, the planned location of the signing ceremony. [Read more]
Despite staying higher than the expected 1.6%, U.S. GDP growth fell to 1.9% (Q3) from 2% (Q2). The decrease in growth resulted primarily from a 15.3% fall in business investment, despite a 2.9% rise in consumer spending. Business investments are weighed down because of trade uncertainties and fear of a slowdown in the manufacturing sector. The U.S.-China trade war also dampened business sentiments as evident in earning calls and surveys. [Read more]
Ongoing trade disputes and weak economic growth have led the Federal Reserve to cut federal funds rates for the third time this year; they now remain between 1.5% and 1.7%. Federal Reserve Chairman Jerome Powell says the rates will remain steady for the “foreseeable future” to satisfy the Fed’s goal of 2% inflation, a strong labor market, and moderate economic growth. He added that the inflation rate would have to increase significantly for the Fed to raise rates. [Read more]
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