The Federal Reserve on Tuesday reduced its policy rate to a range between 1.0% and 1.25% as the central bank implemented a preemptive cut to bolster financial conditions as the coronavirus continues to spread. … READ MORE >
Blog
Shadow IT risk is growing as health care industry consolidates
As health care systems continue to consolidate, they must be aware of the information technology risks lurking in the shadows. … READ MORE >
Anatomy of a meltdown: Financial markets finally take notice of supply shocks
Financial market across the international economy are extracting a powerful toll on portfolio valuations amidst a volatile landscape. … READ MORE >
Coronavirus reveals vulnerability in the life science supply chain
There is growing concern on how the coronavirus outbreak could affect the life science industry, especially the availability and quality of drugs and medical equipment. … READ MORE >
ISM manufacturing index declines in February
The Institute for Supply Management’s manufacturing index — a key gauge of U.S. factory activity — dropped to 50.1 in February, from 50.9 a month earlier, and below the consensus of 50.5. … READ MORE >
Revising growth expectations down because of shocks from coronavirus
We are revising down our 2020 growth forecast because of supply, demand, and financial shocks rippling through the global and U.S. economies amid the spread of coronavirus. While we do not foresee a recession at this time because of expected fiscal and monetary stimulus measures, we believe economic growth will … … READ MORE >
Powell’s statement is a necessary first step in addressing the coronavirus fallout
Federal Reserve Chairman Jerome Lowell made a well-directed and much-needed statement on Friday in an attempt to begin taking back control of the narrative of the Fed’s response to the coronavirus outbreak. … READ MORE >
An improved outlook for manufacturing filtered by Boeing and the coronavirus
The RSM US Manufacturing Index implies improvement in national manufacturing sentiment in February, and we expect a similar uptick in the February ISM survey of manufacturing sentiment next month. However, February may be the last month before the coronavirus takes its toll on the global supply chain; at the same time, the Boeing shutdown will adversely impact the domestic supply chain throughout the first quarter of the year–the impact is expected to show up in both hard and soft data. … READ MORE >
Negative yields increase as global coronavirus risk proliferates
With the outbreak of Covid-19 in China in late December, a global safe haven move by investors started in earnest around Jan. 14; as a result, negative-yielding debt has jumped back to $13.96 trillion as of Feb. 26, writes RSM US Chief Economist Joe Brusuelas. … READ MORE >
Canary in a coal mine: What money market spreads tell us about risk
The recent upset in financial markets has caused a move in sensitive risk spreads implying potential credit market challenges should the crisis spread into the real economy. … READ MORE >