U.S. Economic News

December 4, 2017

U.S. Economic Indicators

New factory orders for manufactured goods edged down 0.1% in October following a 1.7% increase in September, but are up 5.6% on the year. New orders excluding transportation rose 0.8% and new orders for nondefense capital goods excluding aircraft increased 0.3%. Census Bureau Report

U.S. News

The Wall Street Journal reports that The Federal Reserve Bank of Richmond is expected to pick Thomas Barkin, a senior executive at McKinsey & Co., to be its next president. Barkin would be the first person selected from outside the Richmond Fed to lead the institution, though Barkin has previously served as chair of the Atlanta Fed’s board of directors. WSJ

Paul Hannon of the Wall Street Journal writes that The Bank for International Settlements (“BIS”) believes that the Fed’s interest rate increases have failed to cool financial markets and therefore may not have had a significant impact on the U.S. economy. The BIS has said that interest rates have been too low for too long, encouraging risky activity and a buildup of debt that may become problematic if interest rates rise quickly. WSJ

According to The Wall Street Journal, many companies could lose the research-and-development tax credit under the Senate tax bill, which could stifle innovation and technological advancements. Now that the Senate bill preserves the 20% corporate alternative minimum tax, firms who would otherwise benefit from the R&D tax credit may now lose those tax benefits and reduce R&D spending as a result. WSJ