0.50% off sale, government shutdown?, Gen Z, Economic Bits & Pieces and Q4 - it's go time, baby!!
The Results are in…
The FOMC lowered the Fed Funds Rate by 0.50% (or 50 basis points for the finance snobs), to a range of 4.75% to 5.00%.
This will take the prime rate from 8.5% to 8.00%.
Per the Fed “The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance”.
And there you go – a “soft landing”.
Since no good deed goes unpunished…
The stock market skyrocketed at the news. But then the naysayers started yelling “why the big drop? Do they know something we don’t know?”
BTW, many people expect two more 0.25% rate cuts; one in November and one in December.
Now that the rate drama is out of the way (at least for now), the focus has turned to the… government shutdown.
Well, it may not shutdown, but it’s only funded until Friday.
Not to worry, though. Evidently, a deal is in the works that would push the funding to December 20.
Reallly? Five days before Christmas?
I’ll let you know next week.
Let’s talk Gen Z…
Millennials already outnumber Boomers in the work place. And now, Gen Z’ers do too. They are a third of all hires and take up 17% of the workforce. The oldest are 27 and the youngest are 12.
Two Things About Gen Z…
One is completely predictable (from a boomer perspective) and the other, not so much.
Surveys show that companies find their youngest employees the most difficult to work with.
So, how can they make it easier? You do a survey – what does Gen Z want in their workplace?
Millennials had foosball, ping pong, sleep pods etc. Gen X’ers had company gyms. Gen Z wants…
Therapists. They also want meaning, mentorship and a sense of purpose.
I’m really trying to type this without muttering to myself, because that’s what boomers do. My commentary later; keep reading Z’ers, it’s all good.
And companies are listening. Because each generation is different.
As it turns out, workers across all age groups are using the therapists. Even Boomers.
One more thing. They are embracing corporate life. I guess start-ups have lost their luster.
Z’ers say they are pleasantly surprised by their office jobs and the structure they provide.
Paid time off and dressing up for work is something to brag about.
Gee, they almost sound like Boomers. Except Z’ers talk about it on social media.
Us Boomers just went to a bar.
Economic Bits & Pieces
Fun fact. Russia just raised their key rate to 19.0%. Ouch.
And inflation in Russia is 9.1%.
Another Fun Fact. California supplies 90% of Nevada’s gasoline and half of Arizona’s.
That doesn’t mean the state itself supplies it, it means producers in the state send their product across state lines.
And Nevada and Arizona are not happy about California wanting to mandate large gasoline reserves for its citizens.
Mmm, mmm, good.
Campbell Soup Co. is changing its name. It’s dropping ‘soup’. It’ll be Campbell’s Co.
Fair enough. They own brands Prego, Goldfish Crackers and Rao’s pasta sauces.
I grew up on Campbell’s Soup, so I thought it was worth mentioning.
…and setting a new record…
Beware economic records, like California bankruptcies
No, the state hasn’t declared bankruptcy.
The pace of Californians filing for bankruptcy is at a four-year high.
No wonder the state’s consumer confidence is at a four-year low.
Whenever you say low or high, you have to reference your starting point.
Bankruptcy filings are up 25% in a quarter and 38% in a year.
But they are still lower than pre-pandemic.
There is some noise about foreclosures, but while they are up 50% in a year, they are still 23% below 2018-19 activity.
It’s still worth keeping an eye on.
BofA raises its minimum wage to $24/hour.
I would say that will get you the best bank tellers, but I don’t know if I’ve seen more than two tellers in a branch recently.
What it does is make stiff competition for the office workers at your company.
2024 (apologies in advance for all the sports metaphors)
It’s the fourth quarter, and it seems like a month or two ago that we started the year. I have found that if you are behind in the 4th quarter, you have to double your effort to get ahead and mark a win at year-end.
If you are ahead, awesome. Don’t sandbag it to manage your tax bill, keep bringing it in; take it while you can because you don’t know what next year will bring.
However… It’s quite rare that the two-minute drill in December is going to get you across the line.
At any rate, starting next week, you need to be doing two things: making sure you finish ahead of goal for 2024 and; start planning for 2025.
And making sure your employees put up the Halloween decorations.
Also order your coffee with pumpkin spice.
