The U.S. Department of the Treasury released its latest set of regulatory guidelines on opportunity zones on Wednesday, offering significantly more clarity about the program, which provides tax incentives to developers entering geographic areas slated for improvement. Real estate investors appear to be getting everything they want from the program. … READ MORE >
Economics
U.S. trade balance narrows, bolstering Q1 ’19 GDP expectations
The U.S. trade deficit narrowed to $49.3 billion in February from $51.1 billion in January, impacted by one-time factors in the aerospace and agriculture industries.The deficit—which represents an eight-month low—boosted our first-quarter GDP estimate by 0.4 percent to 1.9 percent. … READ MORE >
The impact of auto tariffs–The Real Economy explores
On Feb. 17, the U.S. Commerce Department began an investigation under section 232 of the Trade Expansion Act of 1962 into whether there are national security implications tied to $360 billion in auto imports, including vehicles and parts. If the result leads to a 25 percent tariff on those import, it would be equivalent to a $90 billion tax on U.S. producers and consumers. … READ MORE >
RSM launches Canadian edition of The Real Economy
In the inaugural issue of The Real Economy, Canada, RSM Chief Economist Joseph Brusuelas closely examines the primary drivers of growth for 2019, which include modest consumer spending, government expenditures, and an economy bolstered by an increase in business investment. … READ MORE >
RSM Brexit Stress Index: Decline implies conditions support improved UK economic growth
The RSM Brexit Stress Index declined to -0.08 from 0.41 the prior week due to the extension to Oct. 31 of the UK’s potential exit from the European Union. The index has made a two-standard-deviation move since early December, 2018; the trend implies broader financial conditions supportive of growth sorely needed in the UK economy, which has been stuck near a one-percent growth trend. … READ MORE >
The Real Economy, April edition, is out now!
In this month’s issue of The Real Economy, RSM Chief Economist Joe Brusuelas assesses the rising risks of delayed trade agreements on middle market businesses and takes a closer look at the impact of steel and aluminum tariffs. … READ MORE >
Policy options to boost economy may be limited in a post-Brexit world (updated)
It remains to be seen whether Britain’s impending departure from the European Union will be “hard” or “soft.” Either way, it is time to start thinking about the post-Brexit economic environment. … READ MORE >
RSM’s Brusuelas tells CNBC less than zero chance of Fed rate hike in 2019
RSM Chief Economist Joe Brusuelas on Tuesday discussed the Federal Reserve’s economic policy plan for 2019 with CNBC’s Steve Liesman. Brusuelas says there’s a less than zero chance the Fed will raise rates in the remainder of the year. … READ MORE >
RSM’s Joe Brusuelas talks GDP and economic outlook with Bloomberg radio
Despite a slowing economy, RSM Chief Economist Joe Brusuelas tells Bloomberg radio that “a recession is just not in the cards this year” unless the administration or the Federal Reserve “makes a major mistake.” … READ MORE >
RSM Brexit Stress Index eases on promise of soft departure from EU
Probability for a hard Brexit is falling, data from RSM’s proprietary Brexit Stress Index shows. The index eased to .41 from .71. … READ MORE >