Joe Brusuelas in the News
Recent interviews and contributions featuring RSM's chief economist
Joe Brusuelas is frequently asked to speak with reporters or provide commentary on the outlook for the middle market economy, including how proposed or recently enacted policy change will impact middle market businesses.
Read highlights from some of those recent conversations below. See our full media archives for more.
CNBC, 10-year Treasury yield climbs above 1.1% to start the week, Yun Li and Vicky McKeever, 01/11/21: The 10-year U.S. Treasury yield jumped above 1.1% on Monday, extending its recent advance on bets that more Covid-19 stimulus is coming…“The loss of momentum in the labor market is clear, and those who previously worked in retail, restaurants, entertainment, leisure and hospitality, as well as public sector workers in state and local governments, have paid the price,” wrote Joe Brusuelas, chief economist at RSM.
Politico, Reversing job market opens door to larger Biden stimulus, Ben White, 01/08/21: The latest coronavirus wave slammed the U.S. economy in December, wiping out 140,000 jobs, raising pressure to accelerate vaccinations and blowing the door open for President-elect Joe Biden and a narrowly Democratic Congress to push for even more stimulus spending within weeks…“With the elections in Georgia giving control to the Democrats, we should expect to get a fairly large and targeted fiscal aid package in the first quarter of the year which investors clearly have seized on,” said Joseph Brusuelas, chief economist at consulting firm RSM. “We are going to get a targeted fiscal aid package quickly then another stimulus package and then infrastructure. And these are all huge things.”
The Fiscal Times, Jobs Recovery Falters in December, Michael Rainey, 01/08/21: U.S. payrolls shrank by 140,000 in December, bringing the jobs expansion that started in April to a halt, the Department of Labor announced Friday…The reversal in the labor market should be short-lived, said Joseph Brusuelas, chief economist at the consulting firm RSM. “While the trend in hiring has slowed in recent months — December’s decline was the first since April — we expect that this is more of a temporary lull in hiring than the breakout of a new trend that results in soaring unemployment,” Brusuelas wrote in a note Friday. “Rather, we expect that mass vaccine distribution this year will create the conditions for faster growth and employment." Also picked up in Yahoo! Finance.
Marketplace, Wages spike in the pandemic — but it’s just a fluke, Mitchell Hartman, 01/04/21: The December jobs report from the U.S. Labor Department is expected to show continued strong wage gains compared to the pace of gains in the pre-pandemic economy…“What that was, was noise, not signal,” explained Joseph Brusuelas, chief economist at RSM, a consulting firm focused on small- and middle-market businesses. Brusuelas said that fast-rising wages have been a statistical anomaly of the pandemic economy. While most higher-paid professionals have kept working from home and held on to their paychecks, millions of lower-paid service workers have lost their jobs and income.
Sportico, Sports Index Rallies in December, Capping Late 2020 Boom, Brendan Coffey, 12/31/20: The JohnWallStreet Sports Index posted a 7.9% gain for the month of December, handily outpacing the S&P 500’s performance in the month, as expectations for getting through the pandemic continued to hearten investors…Indeed, much of the strength of sports stocks is linked to expectations of sports returning to normal, at least in the back half of the coming year. “As long as the pandemic abates and procurement and distribution of the vaccine happens, [we should be] looking at a boom in the overall sports and entertainment industry in the second half of 2021,” Joe Brusuelas, chief economist at RSM, told JohnWallStreet. Also picked up in Yahoo! Finance.
Yahoo! Finance, Goldman couldn't be more bullish about the power of the new $900 billion stimulus bill, Brian Sozzi, 12/28/20: The bulls should pop the icy cold Dom Perignon a few days early because dawdling President Trump signed the $900 billion COVID-19 relief bill, suggest the often optimistic forecasters at Goldman Sachs…“This is not stimulus,” RSM US LLP Chief economist Joe Brusuelas told Yahoo Finance Live. “This is direct aid to the American people who are in need of it during this holiday season.”
Yahoo! Finance, ‘Recession by choice’ if no pandemic relief: Brusuelas, 12/23/20: RSM chief economist Joe Brusuelas joins Yahoo Finance Live to discuss President Donald Trump’s opposition to the pandemic aid package Congress approved, and the implications if no relief goes into effect.
Yahoo! Finance, COVID-19 relief bill: Wall Street sees an economic 'tailspin' if Trump doesn't sign, Brian Sozzi, 12/23/20: Wall Street is moving quickly to crystalize around the view that if President Trump doesn’t sign a new $900 billion bipartisan COVID-19 stimulus bill, then investors will get torched… “This is one of the more interesting things I have seen in my career. We would be going into recession by choice. This is something that the political actors in Washington have the power to prevent. And they should act to present it,” RSM US LLP Chief economist Joe Brusuelas told Yahoo Finance Live. “If they don’t and this just continues well into January and nothing gets done, we are likely to see a double-dip recession. That still create conditions that will delay recovery and create an expansion that’s weaker than it otherwise has to be." Also picked up in AOL.
Politico, Trump lobs yet another massive grenade, Ben White and Aubree Eliza Weaver, 12/23/20: Just when we all thought we could pack up and slide into a desperately needed Christmas break, President Donald Trump, as he is wont to do, tossed a grenade into the Covid relief bill by posting a video on Facebook calling the $900B package passed by both houses of Congress a “disgrace.”… RSM’s Joe Brusuelas: “[T]here is now a significant risk of a government shutdown on December 28, 2020. The opposition is not just about the fiscal aid package, but about grievances over the composition of the $1.4 trillion budget package. Such a shutdown would disturb consumer and corporate confidence as well as an upset in financial markets at a time when the nascent global economic recovery is quite fragile and still in crisis.”
Bankrate, Survey: Top economists see slowing economic recovery from coronavirus pandemic in 2021, Sarah Foster, 12/23/20: The U.S. economy in 2021 will continue to recover from this year’s steep coronavirus-induced downturn, but at a much slower pace than earlier in the spring, according to Bankrate’s Fourth-Quarter Economic Indicator survey…“The arrival of a vaccine will permit the resumption of normal social and economic activity stimulating a boom in the second half of 2021,” says Joe Brusuelas, chief economist at RSM.
Sportico, Sports and Entertainment Stocks Looking at H2 ‘Boom’ in 2021, 12/23/20: The JohnWallStreet Sports Stock Index is up 38% since its Aug. 1 introduction, reflecting investor optimism in approved vaccines putting an end to the pandemic, as well as relative confidence in a rebirth of the live events business in a post-COVID world… Conversations with a trio of well-respected insiders—a sports financier (Eric Grubman), a wealth manager (Jack Ablin) and an economist (Joe Brusuelas)—indicate the sector’s performance in 2021 will almost certainly be tied to developments in public health. “As long as the pandemic abates and procurement and distribution of the vaccine happens, [we should be] looking at a boom in the overall sports and entertainment industry in the second half of 2021,” predicted Brusuelas, chief economist at RSM.
The Fiscal Times, Too Little, Too Late? Covid Relief Bill Meets Its Critics, Yuval Rosenberg, 12/22/20: As expected, the House and Senate both passed the $900 billion coronavirus relief package and a $1.4 trillion catchall spending bill on Monday night…“The legislation was passed too late, is too limited, and expires too soon to offset the adverse economic impact caused by the intensification of the pandemic and the resulting pullback by the public and lockdowns around the economy in the current quarter,” wrote Joseph Brusuelas, chief economist at consulting firm RSM. “As a result, the aid package is not a stimulus bill, it is a rescue bill, and the economy will likely require another round of aid as early as next year.” Also picked up in Yahoo! News.
Washington Post, The Finance 202: The coronavirus crisis is leaving labor market scars that will take years to heal, Tory Newmyer, 12/18/20: As a bleak Christmas bears down on millions of Americans, JPMorgan’s cross-asset strategists just offered the best description yet of the rarefied view from the top of the K-shaped recovery…Joe Brusuelas, chief economist for RSM, an accounting firm for midsize businesses, projects the economy will not reach full employment until 2025. It could take even longer for those in the bottom fifth of the income scale to see their wages start to rise at a meaningful clip. That phenomenon had only recently taken hold when the pandemic struck.
TD Ameritrade Network, Joe Brusuelas Talks Market Impact Of Covid-19 Vaccine Rollout, 12/18/20: RSM Chief Economist Joe Brusuelas joined TD Ameritrade Network’s “The Watch List” to discuss his 2021 economic outlook.
Washington Post, The Finance 202: Fed's Powell warns Washington will remain on economic clean-up duty for foreseeable future, Tory Newmyer, 12/17/20: Jerome H. Powell has spent months all but skywriting over the Capitol that lawmakers should provide more emergency economic relief…From RSM chief economist Joe Brusuelas: Powell just made a very strong and compelling case for further fiscal aid to prevent losses of jobs and firms in the small business community due to the pandemic. That $900 billion number that is floating around is a necessary but not sufficient condition.
Axios, Blind spots in weekly jobless claims data make the trend difficult to parse, Courtenay Brown, 12/11/20: New applications for unemployment benefits last week hit a three-month high — the latest sign that the labor market recovery is stalling…The claims upswing “likely overstates the trend, in the pace of firings, due to the catching up of processing claims following the Thanksgiving holiday,” Joe Brusuelas, chief economist as RSM US, wrote in a note.
Washington Post, The Finance 202: U.S. wealth just hit a new record, even as more people steal in order to eat, Tory Newmyer, 12/11/20: Americans collectively are richer than ever and getting more so. That fact would come as a surprise to tens of millions, including those who now have to steal to eat…Even when workers return to the job, RSM chief economist Joe Brusuelas projects a “K-shaped wage environment next year where those workers with the capacity, skills and know-how to thrive in virtual environments will capture the lion’s share of wage growth during the initial phase of the recovery.” “At the same time,” Brusuelas writes, “workers in service-sector and entry-level jobs will almost certainly face a restrained wage environment at best.” Also picked up in MSN News.
The Fiscal Times, Jobless Claims Jump to 3-Month High, Michael Rainey, 12/10/20: While lawmakers in Washington remain deadlocked over a new fiscal relief package, the economy is sending signals that it needs more help…Joseph Brusuelas, chief economist at the consulting firm RSM, noted that while the data may be distorted to some extent by the timing of the Thanksgiving holiday, “there is simply no rational case to be made that the underlying condition in the domestic labor market is improving as the pandemic intensifies. ... There are officially 9.8 million unemployed people, 19 million on some form of unemployment insurance and millions who have exhausted their benefits.” Also picked up in Yahoo! Finance.
The Hill, Congress barrels toward 'COVID cliff', Sylvan Lane, 12/09/20: The clock is ticking for Congress to avoid the so-called COVID cliff by extending a slew of coronavirus-related protections for housing and unemployment that are set to expire at the end of the month…“We essentially are going to make a choice over the next two weeks over whether we want to have a double-dip recession or not,” said Joe Brusuelas, chief economist at audit and tax firm RSM. Similar article also featured in The Hill.
Washington Post, The economy added 245,000 jobs in November, the slowest month of growth since recovery began, Eli Rosenberg, 12/04/20: The U.S. economy added 245,000 jobs in November — the slowest month of growth since spring and a warning for the recovery in the months ahead as infections surge to new heights across the country…“One should anticipate rough sledding over the next 90 days in terms of hiring,” Joe Brusuelas, chief economist at RSM, an accounting firm focused on midsized businesses. “I mean, it just screams the economy needs more fiscal aid, right now.” Similar article also featured in the Washington Post.
Marketplace, Job gains slow in November as pandemic hampers recovery, Mitchell Hartman, 12/04/20: The American economy added 245,000 nonfarm jobs in November, far fewer than the 610,000 the month before, according to the U.S. Labor Department…We were adding jobs twice as fast just a month earlier, in October, said economist Joseph Brusuelas at RSM Consulting. He explained it with some complex math terms: “What we call a first derivative-second derivative problem. First derivative looks strong.”
Benzinga, US Adds Just 245K Jobs In November, Missing Expectations By 44%, Wayne Duggan, 12/04/20: On Friday, the Bureau of Labor Statistics released employment data for the month of November, and the numbers were disappointing…Joseph Brusuelas, chief economist at RSM US LLP, said further job growth will be difficult to come by until Americans are certainly a safe coronavirus vaccine is widely available. "While we are outright bullish on growth and employment conditions in the second half of 2021 what is going to unfold over the next few months necessitates the targeting of fiscal aid at small service sector firms, replenishing unemployment insurance, strengthening eviction protections and forbearance measures as well as providing direct aid to state and local governments to prevent an increase in public sector unemployment," Brusuelas said. Also picked up in Yahoo! Finance.
Bankrate, Take these important precautions now before key coronavirus relief programs expire, Sarah Foster, 12/02/20: Millions of Americans are hurtling toward a major fiscal cliff when the calendar turns from 2020 to 2021…Federal relief programs, including the $600 unemployment boost and $1,200 stimulus payments (or more), helped prop up Americans’ wallets at the start of the pandemic, blunting the pain of mass job loss that prevented consumption from sharply dropping off. These expiration dates take away that safety net, while other businesses may resort to bankruptcy to get a fresh start in the new year and reduce debt, according to Joe Brusuelas, chief economist at RSM.
The New York Times, These ‘Little Land Mines’ Could Prevent a Summertime Boom, Neil Irwin, 12/01/20: For the first time since the pandemic shuttered the economy eight months ago, the end is in sight. The development of vaccines that appear to be safe, effective and ready for wide distribution in the months ahead means it’s now possible to envision a post-Covid economy by summer…“There are these little land mines across the economic landscape,” said Joe Brusuelas, chief economist at RSM, an accounting firm that services midsize businesses. “Even if they don’t matter at the macro level, at the local level they can matter a lot.” Similar article also featured in The New York Times.
CNN Business, Another 778,000 Americans filed first-time unemployment claims last week, Paul La Monica, 11/25/20: The recovery in the American job market is still painfully slow. Another 778,000 people filed for first-time unemployment benefits last week on a seasonally adjusted basis…"It is quite clear that the intensification of the pandemic, the pullback by the public and government mandated lockdowns are clearly combining to cause an increase in first time claims," said Joseph Brusuelas, chief economist with RSM US, in a report Wednesday morning. "Despite the potential arrival of a mass produced and distributed vaccine, this economy demands fiscal aid now," he added.
The Wall Street Journal, Upbeat Investors Look Past Covid-19, Related Woes, Harriet Torry, 11/24/20: Among the big reasons for climbing stock prices is investors’ optimism about the strength of the economic recovery in the years ahead. While recent data show economic growth slowing and consumer confidence flagging, markets are forward-looking and betting the recovery will gain steam, analysts say, particularly with Covid-19 vaccines on the horizon…“This is one of these times where the disconnect between markets and the economy makes sense,” said Joseph Brusuelas, chief economist at RSM US. He said if a vaccine is successful, that “does create conditions for well above-trend growth next year and the year after.” Also picked up in Morningstar and MarketScreener.
CNN Business, Why Janet Yellen makes so much sense as Treasury secretary, Matt Egan, 11/23/20: Janet Yellen checks all the boxes in President-elect Joe Biden's quest to find a Treasury secretary who won't spook Wall Street, alienate progressives or forget about Main Street's plight…"A Yellen-led Treasury would use the fiscal firepower of the United States to return to full employment," said Joe Brusuelas, chief economist at RSM US. "Yellen would be a great pick because she speaks to the whole economy."
Bankrate, Unemployment vs. underemployment, explained, Sarah Foster, 11/20/20: Even if every American who wants a job can find one, that doesn’t always mean the labor market is at its strongest…“The pandemic unleashed a once-in-a-century economic shock while simultaneously providing an opportunity to reassess operations, talent and strategy,” writes Joe Brusuelas, chief economist at RSM in a 2021 outlook. “The pulling forward of many long-term trends in technology and automation will cause firms to increasingly look to substitute technology for labor and to reduce outlays on commercial real estate and traditional business travel.”
ABL Advisor, Middle Market Business Index Holds Steady, Economy on Track for Recovery, 11/20/20: The RSM US Middle Market Business Index (MMBI), presented by RSM US LLP ("RSM") in partnership with the U.S. Chamber of Commerce, remained steady in October, indicating the U.S. economy is continuing to emerge from the pandemic-induced recession…"The recent intensification of COVID-19 infections in the U.S. and Europe has yet to dampen sentiment, but the rapid rise in cases, coupled with volatility in equity markets, suggests limited upside as the pandemic rages on," said Joe Brusuelas, RSM US LLP Chief Economist. "Even without widespread shutdowns, consumers and businesses are likely to pull back if the pandemic worsens, resulting in significant economic damage. However, it is important to note that our survey was conducted before the U.S. presidential election and Pfizer and Moderna's promising vaccine news, which may change the perception of current and future-looking business conditions well into next year." Similar articles also featured in Yahoo! Finance, Morningstar and StreetInsider, among others.
The Wall Street Journal, In the Covid Economy, Laid-Off Employees Become New Entrepreneurs, Kim Mackrael, 11/18/20: The coronavirus destroyed jobs. It also created entrepreneurs…Though people often turn to self employment when a recession eliminates jobs, new business formation was weak during the financial crisis. Reasons included tight credit and the loss of household wealth from the housing-market collapse, said Joseph Brusuelas, chief economist at RSM US LLP, an accounting and consulting firm. The Covid-driven crash had a different effect. “This shock is much more intense and has resulted in people turning to self-employment because they know those jobs probably aren’t going to come back,” Mr. Brusuelas said. Similar article also featured in WSJ Noted.
Washington Post, The Finance 202: CEOs embrace Biden as president-elect while many Republicans still won't acknowledge his win, Tory Newmyer, 11/17/20: Republicans from President Trump to party leaders on Capitol Hill may not be ready to accept that Joe Biden won the presidential election. But top CEOs, whom the GOP once considered a base of support, are reaching out to work with the incoming administration…RSM chief economist Joseph Brusuelas projects 14 million cases by the end of the month: This intensification of the pandemic is understandably juxtaposed against the encouraging Pfizer and Moderna news on a potential vaccine. The RSM model implies that there will be more than 14 million infections by the end of the month.
The Wall Street Journal, WSJ Survey: Economic Recovery Seen Staying on Track After Election, Harriet Torry and Anthony DeBarros, 11/12/20: Forecasters expect the U.S. economic recovery to remain on track following the presidential election, with a potential coronavirus vaccine and a new fiscal stimulus package in sight, a new Wall Street Journal survey shows…“A vaccine will unlock close to $4 trillion in impaired economic activity, which does denote significant upside risk to the forecast,” said Joe Brusuelas, chief economist at RSM US. Also picked up in Morningstar.
Washington Post, The Finance 202: Biden is likely weeks away from filling out his economic team, despite fevered speculation, Tory Newmyer, 11/11/20: The name game over who will fill which jobs overseeing Wall Street in the Biden administration has reached full tilt. But it will be a matter of weeks, not days, before the incoming Biden team announces most of its picks for the posts, people close to the process say…From RSM chief economist Joseph Brusuelas: Data culled from the latest JOLTS report indicates that there are now 2 unemployed persons for every one job opening in the U.S., down from the pandemic high of 4.6 earlier this year.
Associated Press, For Biden, how to help mangled economy is next obstacle, Josh Boak, 11/09/20: Joe Biden will inherit a mangled U.S. economy — one that never fully healed from the coronavirus and could suffer again as new infections are climbing…“The U.S. economy is operating at around 80% of total capacity to produce and consume,” said Joe Brusuelas, chief economist at RSM, a tax advisory and consultant. “The U.S. can afford to wait on additional fiscal aid,” he said, but “the poor and working class are going to pay a terrible price.” Also picked up in Yahoo! Finance, U.S. News & World Report and ABC News, among others.
Politico, The hangover awaiting Biden: Deep wounds from Covid-19, Ben White and Victoria Guida, 11/10/20: When President-elect Joe Biden takes office in January, he will face a U.S. economy at a crossroads…Joseph Brusuelas, chief economist at consulting firm RSM, expressed optimism that the Biden administration would be able to boost the economy through some legislation early on in his presidency. Beyond stimulus, he said the government could move on infrastructure, including by establishing an independent infrastructure bank to finance projects, as well as on trade policy. “We hear one of the first things that is going to be done is to reach out and mend fences with trade partners” other than China, he said. “That’s really important. We’re all going to need the trade channel to grow our way out of the pandemic-induced recession.”
CNN Business, A vaccine might be coming, but the Covid economy still desperately needs stimulus, Matt Egan, 11/09/20: The coronavirus-ravaged economy just received a jolt of something it hasn't experienced in months: hope. Pfizer revealed Monday that data show its trial coronavirus vaccine is more than 90% effective, exceeding even the most optimistic expectations. The breakthrough set Wall Street zooming to record heights on hopes for a full economic recovery…"This is some of the most unambiguously good news for the economy that we've had in a long time," said Joe Brusuelas, chief economist at RSM International. "We now can see the light at the end of the tunnel. And it's not an oncoming train."
Yahoo! Finance, Joe Brusuelas on October jobs report, election results, 11/06/20: RSM chief economist Joe Brusuelas joins Yahoo Finance to discuss the October jobs report, election results and the state of the U.S. economy.
TD Ameritrade, Joe Brusuelas Covers Latest In Employment, 11/06/20: RSM Chief Economist Joe Brusuelas joins TD Ameritrade Network’s “The Watch List” to discuss the October jobs report.
CNN Business, Big Tech is strengthening its hold on the US economy, Julia Horowitz, 10/30/20: America's tech companies are strengthening their hold on the economy during the coronavirus crisis — though for investors, some results look better than others…The Back-to-Normal Index from CNN Business and Moody's Analytics edged higher in October, but some view new social distancing rules as inevitable as coronavirus cases spike. An inability to agree on another stimulus package in Congress could make matters worse. "An intensifying pandemic and probable lack of another round of fiscal aid this year will almost certainly dampen overall economic activity to close the year and to begin 2021," said Joseph Brusuelas, chief economist at RSM US.
Yahoo! Finance, Here comes the best GDP report on record*: Morning Brief, Myles Udland, 10/29/20: Later this morning, the Bureau of Economic Analysis will publish the first estimate of economic growth in the third quarter. And the number will likely be historic…“It is not just the size of the rebound that should be of paramount interest,” said Joe Brusuelas, chief economist at RSM. “Rather, policymakers should focus on the size of the economic gap that has left small firms, and the poor and working class, struggling to keep up.”
Los Angeles Times, GDP rebounded by record 33% annual rate last quarter, but resurgent pandemic threatens recovery, Don Lee, 10/29/20: The U.S. economy grew at a record-setting pace in the third quarter, but it wasn’t nearly enough to make up for the unprecedented devastation caused by COVID-19 or to allay fears of new damage from a resurgent pandemic…The latest GDP report “underscores the resilience embedded with the American economy,” said Joseph Brusuelas, chief economist at the accounting firm RSM US. “Yet [it] massively overstates the nature of the rebound and the true condition of the U.S. economy, which remains significantly impaired.”
KNX Newsradio, KNX In Depth: Pro sports can't kick, hit, juke or punt away its COVID troubles -- Ransomware threat for U.S. hospitals -- the Girls Scouts steps into Supreme Court politics, 10/29/20: Does Wall Street have a preference between Joe Biden and Donald Trump?...Joe Brusuelas, chief economist at RSM, joins the show to discuss.
MarketWatch, Stimulus stalemate threatens more hardship and slower recovery, economists warn, Jeffry Bartash, 10/21/20: The failure of Washington to deliver another big dose of stimulus before the election probably won’t tip the U.S. back into recession, economists say, but the lapse in aid threatens to destroy more businesses, inflict greater pain on millions of unemployed Americans and drag out a recovery…As many as one-fourth of all small businesses that are still open might be forced to close if they don’t get more help or if the economic recovery falters, estimates chief economist Joe Brusuelas of RSM, an advisory firm for midsized companies. “We have to decide if we are going to keep them open and the people that work for them afloat,” said Brusuelas, who’s been outspoken about the need for more aid. “Washington should move as quickly as possible to put the biggest stimulus on the table.” Also picked up in Morningstar.
Wealth Professional, Neither a Trump nor Biden win would be all good for Canada, Leo Almazora, 10/21/20: Whoever emerges victorious in the contentious U.S. presidential election, the Canadian economy will have to face risks and consequences arising from each candidate’s record and policy positions, according to a new analysis. In its latest Real Economy: Canada report, RSM Canada highlighted a growing interdependence between the two North American countries due to the Canada-U.S.-Mexico Agreement (CUSMA)…“Despite a rocky relationship between Canada and the current U.S. administration in recent years, it's clear that a victory for either Trump or Biden would pose risks to Canada's economy,” said Alex Kotsopoulos, vice president, projects and economics with RSM Canada…“When looking at Canada's economic recovery data from the pandemic so far, it's clear that the resurgence of Canada's consumer sector has led the charge after a lengthy shutdown,” said Joe Brusuelas, chief economist with RSM US LLP. Similar articles also featured in Yahoo! Finance, Benzinga and Markets Insider, among others.
TD Ameritrade, Joe Brusuelas Talks Covid-19 and the Economy, 10/19/20: RSM Chief Economist Joe Brusuelas joins TD Ameritrade Network’s “The Watch List” to discuss Covid-19 and the economy.
PYMNTS, Pandemic Presents New Hurdles For Consumer Holiday Spending, 10/19/20: As it presents possible hurdles for an economy that heavily depends on their amenability to purchase, COVID-19 is making new challenges for the 2020 holiday spending by American consumers…Joe Brusuelas, RSM chief economist, foresees retail sales to rise only 0.5 percent in the holiday season, which is partially due to the fact that Congress has not ratified a new stimulus package.
MarketScreener, Consumer Cos Down On Nerves About Stimulus Prospects -- Consumer Roundup, 10/19/20: Shares of retailers and other consumer companies fell as investors grew nervous about the prospects for a stimulus deal ahead of the U.S. election…Retail and services businesses are among those still feeling the impact of changing consumer behavior. RSM US chief economist Joe Brusuelas expects retail sales to increase just 0.5% this holiday season, partly because Congress hasn't passed a new stimulus package, as reported earlier. Also picked up in Morningstar.
The Wall Street Journal, Coronavirus Pandemic Putting Damper on Holiday Shopping Season, Harriet Torry, 10/18/20: The coronavirus pandemic is creating novel hurdles for Americans’ spending this holiday season, posing potential challenges for an economy that leans heavily on their willingness to consume…A number of economists are predicting little growth or none whatsoever this year compared with 2019. RSM US chief economist Joe Brusuelas expects retail sales to increase just 0.5% this holiday season—partly because Congress hasn’t passed a new stimulus package. Also picked up in Morningstar.
Benzinga, Do Millennials Care About The Stock Market?, Wayne Duggan, 10/16/20: Millennials have flooded into the stock market in droves in 2020, with popular trading apps such as Robinhood and WeBull reporting huge spikes in younger users…RSM Chief Economist Joe Brusuelas told Benzinga that millennials simply have other financial priorities at this point in their lives. "It is not so much that they care less about equities, it’s that their income is allocated to necessities rather than the luxury of investing due to a lack of personal disposable income," said Brusuelas.
CNN Business, Americans are racing to create new businesses during the pandemic, Julia Horowitz, 10/12/20: At a moment of intense uncertainty, Americans are rushing to form new businesses — one positive sign for the economic recovery…This trend is very encouraging, according to Joseph Brusuelas, chief economist as RSM US. After a deep recession, you want a chunk of displaced workers to feel confident they can take advantage of pro-business conditions like low interest rates and strike out on their own, he said. "This has been one of the primary catalysts of resilience of the US economy throughout its history," Brusuelas told me.
The Fiscal Times, Cost of Interest on National Debt Falls Despite Surging Deficit: CBO, Michael Rainey, 10/09/20: The federal government estimates that it has paid billions of dollars less in interest on the national debt in the 2020 fiscal year, despite an increase in the size of the national debt on an annual basis…Joseph Brusuelas, chief economist at the consulting firm RSM, said Friday that “long-term interest rates have undergone a profound structural shift that is likely to keep yields at extremely low levels in the near to medium term.” According to his firm’s model, the long-term downward pressure on interest rates will continue, keeping the 10-year Treasury below 1% through at least 2025. Also picked up in Yahoo! Finance.
The Wall Street Journal, WSJ Survey: 43% of Economists Don’t See U.S. Gaining Back Lost Jobs Until 2023, Harriet Torry and Anthony DeBarros, 10/08/20: The U.S. labor market faces a protracted recovery amid the continued spread of the coronavirus and uncertainty over prospects for another stimulus package and the outcome of the presidential election, according to a new Wall Street Journal survey of economists…“The damage to service-sector employment will be long lasting, and many will face long durations of unemployment that will delay the return to February 2020 levels,” said Joseph Brusuelas, chief economist at RSM US. Also picked up in Morningstar.
NBC News, First-time jobless claims rose to 840,000 last week vs 825,000 estimated, Lucy Bayly, 10/08/20: The number of people who filed for first-time unemployment benefits reached 840,000 last week, according to data released Thursday by the Department of Labor. Economists surveyed by Dow Jones had forecast claims would fall to 825,000…“A lack of another round of fiscal aid will result in a much slower path of growth heading into the end of the year,” Joseph Brusuelas, chief economist at RSM, told CNBC. “You’re just going to see everything slow to a grind if we don’t see anything put forward.” Also picked up in MSN Money.
The Guardian, US jobless claims: What the experts say, 10/08/20: Several economists and investors are concerned that US jobless claims seem to have levelled off at a worryingly high level. Joseph Brusuelas, chief economist at RSM, says there’s no V-shaped recovery in the labor force: Joseph Brusuelas, @joebrusuelas: “Over the past six weeks first time claims have average 867,000 which clearly points to a stalling out of improvement with claims at elevated levels. Moreover, that average stands above the 661,000 of workers recalled in September. Definitely not a V shaped recovery.”
Los Angeles Business Journal, Women's Leadership Series 2020: Women in the Workplace - A Strategic Priority, Dara Castle, 10/08/20: In a global economy with an increasingly tight yet diverse workforce, employers must create workplaces that suit the needs of diverse populations. And women are a big part of the equation. In fact, according to a recent economic blog update by RSM Chief Economist Joe Brusuelas and one of RSM’s Industry Eminents, Laura Dietzel, women now outnumber men in the workforce (50.04% to 49.96%). There are 109,000 more women than men in the American workforce, excluding agricultural jobs, which foreshadows what we at RSM believe will be a significant period of change in wages, benefits and the way companies of all sizes work…Dara Castle is the Washington, DC Metropolitan Area Offices market leader and is the national leader of RSM’s government contracting practice.
CNBC, As stimulus talks falter, the U.S. economy faces growth coming to a halt, Jeff Cox, 10/07/20: A recovery that has lived by stimulus could die by stimulus, or the lack thereof, as the impasse among Washington leaders hits a new phase…“A lack of another round of fiscal aid will result in a much slower path of growth heading into the end of the year,” said Joseph Brusuelas, chief economist at RSM. “You’re just going to see everything slow to a grind if we don’t see anything put forward.”
Associated Press, Bleak outlook without stimulus: More layoffs, anemic growth, Christopher Rugaber, 10/07/20: President Donald Trump’s move Tuesday to cut off talks on another government aid package will further weaken an economy straining to recover from an epic collapse, economists say, and deepen the hardships for jobless Americans and struggling businesses…“Given what looks to be a growing probability of a second wave of the coronavirus pandemic, we now attach a 50% probability of a recession over the next 12 months,” said Joe Brusuelas, chief economist at tax advisor firm RSM. If a large stimulus is adopted early next year, the likelihood of a downturn would fall, Brusuelas added. Also picked up in The Washington Post, Yahoo! Finance and MSN Money, among others.
Politico, ‘Trump just kicked over the chess board’: GOP faces an election with more pain, Ben White, 10/07/20: President Donald Trump may have tweeted away one of his best chances to prop up a struggling economy, deliver a boost to jittery markets and improve his own standing with wavering voters less than a month from Election Day…Joseph Brusuelas, chief economist at consulting firm RSM US, said in a note to clients Wednesday he had downgraded his expectations for economic growth to a paltry 2.25 percent pace in the fourth quarter and 2 percent in the first quarter, “because of a likely lack of fiscal aid that will affect the economy and a growing uncertainty around the U.S. election." Also picked up in Yahoo! Finance and MSN News.
Marketplace, Without more relief spending, the recovery’s likely to stall, Mitchell Hartman, 10/07/20: President Trump’s messages in tweets and signals over the last 24 hours have gone back and forth on whether he supports another coronavirus relief plan…With most of the federal pandemic relief now gone, “we’ve seen a slowing of retail sales and personal spending,” said Joseph Brusuelas, chief economist at consulting company RSM. A quarter of small businesses have closed, he said. Brusuelas predicts without more federal support — including lending to small businesses — more will fail.
Axios, How the U.S. economy powered through Q3, Dion Rabouin, 10/06/20: The U.S. economy was resilient in the third quarter, with sales and growth powering higher despite the persistent coronavirus pandemic, increased uncertainty about the future and Congress' inability to pass another spending package to help struggling small businesses and unemployed workers…However, spending still rose for the month and is up 40.3% on a three-month average annualized pace, RSM chief economist Joe Brusuelas pointed out in a recent note. "The latter is part of the rebound narrative that will likely result in a third-quarter gross domestic product increase that arrives above 30%, while the former clearly indicates that the pace of spending is slowing," Brusuelas said.
Washington Post, Moms, Black Americans and educators are in trouble as economic recovery slows, Andrew Van Dam and Heather Long, 10/02/20: The economic recovery sputtered in September. Working mothers and Black Americans in particular had already been falling behind, and new numbers imply they lost even more ground last month…“We are at risk of making the same mistakes we did during the great financial crisis, which is not moving swiftly enough and robustly enough to make sure state and local governments can continue to function without having to lay off teachers, firefighters and police officers,” said Joseph Brusuelas, chief economist at audit firm RSM.
TD Ameritrade, Joe Brusuelas Discusses The State Of Futures After Potus Covid-19 News, 10/02/20: RSM’s Joe Brusuelas assesses what the September jobs report means for markets on TD Ameritrade Network’s “Morning Trade Live.”
MarketWatch, U.S. unemployment rate falls to pandemic low of 7.9%, but that’s not the whole story, Jeffry Bartash, 10/02/20: The unemployment rate has shrunk from a modern record high of 14.7% during the worst stages of the coronavirus pandemic to just under 8% in September, but the rapid plunge is not nearly as good as it looks. Not by a longshot…“Given the large number of people who have exited the labor market, that number understates the true level of unemployment by roughly 3 percentage points,” said chief economist Joe Brusuelas of RSM. “For this reason, the ‘real unemployment rate’ is likely somewhere between 11% and 12%.” Similar articles also featured in Benzinga, Yahoo! Finance and Morningstar.
Washington Post, The Finance 202: Stock futures dive on the news that President Trump and the First Lady have coronavirus, Tory Newmyer, 10/02/20: Stock market futures are plunging on the news that President Trump and first lady Melania Trump have tested positive for the coronavirus…Economists say that traditional measure of unemployment dramatically understates the reality of the ongoing labor market damage wrought by the economic crisis. A more comprehensive assessment, factoring in those who are underemployed or have given up looking for work altogether, would indicate a rate as high as 18 percent, says RSM chief economist Joseph Brusuelas. “The economy is only operating at around 80 percent of its capacity to produce and consume. That’s the underlying reality of the American condition roughly 30 days before the election, and that’s how people will look at the economy” as they determine their votes, he says.
Washington Post, Layoffs still piling up as jobless claims remain stubbornly high, Eli Rosenberg, 10/01/20: A grim portrait of the U.S. economy is emerging more than six months into the pandemic, as a cascade of new layoffs announced this week puts pressure on an already strained labor market and further raises the specter of an economic u-turn with the recovery only partially underway…“There is clearly a stalling out in the improvement in the domestic labor force,” said Joseph Brusuelas, the chief economist at RSM. “In particular, the rise in the number of persons on unemployment insurance and the increase in the number of people on PUA need to be monitored, because that signals we’re likely to have a sustained issue over the next couple of years inside the labor market, particularly pertaining to transportation, leisure, hospitality in general, aviation and hotels in particular.” Similar article also featured in The Fiscal Times.
Bankrate, Survey: Top economists see unemployment rate holding above pre-pandemic levels into 2021, James Royal, 10/01/20: The U.S. economy has sharply improved from even just a few months ago, as massive stimulus spending and low interest rates have kept money flowing. And according to a new Bankrate survey, the nation’s top economists expect the improvements to continue over the next year…The Third-Quarter 2020 Bankrate Economic Indicator Survey of economists was conducted September 10-22, 2020…Responding were…Joseph Brusuelas, chief economist, RSM US LLP.
Newsweek, V-Shaped or K-Shaped Recovery? What Experts Are Saying About U.S. Economy, Lucy Harley-McKeown, 09/30/20: As many people continue to struggle amid the coronavirus-wrought economic downturn, attention has turned to what kind of recovery the U.S. can expect…As a result of this the S&P 500 has reached record levels and investors are cashing in. Meanwhile many are still in dire need of new unemployment support measures. "It's one recovery for financial market investors and another recovery for everybody else," Joe Brusuelas, chief economist at RSM told The Washington Post.
CNN Business, Here's more evidence the US jobs recovery has stalled, Julia Horowitz, 09/25/20: Economists have been warning that the jobs recovery could run into trouble this fall. Now, their fears appear to be bearing out. Another 870,000 claims for first-time unemployment benefits were filed by Americans last week. That's slightly higher than the previous week, and remains well above pre-pandemic levels. "The stalling out suggests that the easy gains of the recovery's early stages are likely in the rear-view mirror and that the hard work of digging out of the economic abyss lies ahead," Joseph Brusuelas, chief economist at RSM US, told clients Thursday.
Benzinga, Experts React To Jobs Report: 'Need For Further Fiscal Action Is Obvious', Wayne Duggan, 09/24/20: The SPDR S&P 500 ETF Trust traded lower Thursday after the weekly U.S. jobs report from the Labor Department revealed a surprise increase in the number of initial jobless claims…Joseph Brusuelas, Chief Economist at RSM US LLP, said the jobs number is yet another signal the easy part of the economic recovery is already in the rear-view mirror. “One gets the sense that the reality of an economy operating at 80% capacity has finally sunk in, and pricing action across asset classes over the past month tends to bear that out,” Brusuelas wrote. Also picked up in Yahoo! Finance.
The Fiscal Times, Layoffs Keep Coming, 27 Weeks Into the Crisis, Michael Rainey, 09/24/20: About 870,000 people filed for state unemployment benefits in the week ending September 19, the Labor Department said Thursday, a slight increase from the week before on a seasonally adjusted basis and well above economists’ expectations…Joseph Brusuelas, chief economist at the consulting firm RSM, said the “stalling out suggests that the easy gains of the recovery’s early stages are likely in the rear-view mirror and the hard work of digging out of the economic abyss lies ahead.” Also picked up in Yahoo! Finance.
Politico, Stop calling it a V-shaped recovery, Ben White and Aubree Eliza Weaver, 09/23/20: Administration officials like to talk about the current economy as a “V-shaped” recovery. That means a sharp fall and equally sharp bounce back. But there is really nothing to suggest that’s the case right now…Via RSM’s Joe Brusuelas: “Assuming there will not be a significant growth in the labor force anytime soon, then the U.S. needs a much faster pace of growth to mitigate the permanent damage to the economy wrought by the pandemic.”
Los Angeles Business Journal, CFO Awards: Small and Medium-Sized Firms in Crisis - A Message from the Real Economy, Joe Brusuelas, 09/23/20: The condition of small and medium-size firms implies a potential inflection point in the nascent economic rebound following the near shutdown of the economy last spring. Without further reform and support of the signature Paycheck Protection Program—which provided a vital lifeline to those firms during the worst of the pandemic—there will be an increase in bankruptcies, followed by another round of job losses, this time tilted toward the permanent elimination of jobs that support the bulk of the American middle and working classes.
TD Ameritrade, Joe Brusuelas Examines The Impact From Covid-19, 09/21/20: With a new stance from the Fed on inflation, rising Covid-19 cases, and the US election lingering, how should investors be preparing for the end of a wild year for markets? Joe Brusuelas, chief economist at RSM, gives his economic outlook on The Watch List with Nicole Petallides.
Sportico, Prolonged Period of Low Interest Rates to Impact Pro Sports Business, 09/21/20: Last week, in the Federal Reserve’s final policy-setting meeting before the 2020 election, the U.S. central bank announced the benchmark federal funds rate would remain between 0% and .025%...RSM U.S. (an audit, tax and consulting firm) chief economist Joe Brusuelas suggested today’s unique financial landscape will bring a “burst of stadium construction, new people entering the market to purchase [pro franchises]” and perhaps an increase in sponsorship revenue.
Politico, Wall Street loses altitude, Ben White and Aubree Eliza Weaver, 09/18/20: Since peaking early this month around 29,000, the Dow has sagged back over 1,000 points amid signs of some economic slowing and the lack of any fresh stimulus out of Washington…RSM’s Joseph Brusuelas: “The pace of firings in the U.S. economy remains well above anything observed during the Great Financial Crisis as 860,000 workers filed for first-time jobless claims for the week ending Sept. 12, a reflection of the deep scarring in the domestic labor market and economy.”
Washington Post, Six months, and a grim milestone: 26th-straight week of record-level unemployment claims, Eli Rosenberg, 09/17/20: Another 860,000 people applied for unemployment insurance claims last week — the 26th-straight week that unemployment claims remained above a pre-pandemic record dating to the 1960s…Joe Brusuelas, the chief economist at RSM, wrote that the continued high levels of unemployment claims were a “reflection of the deep scarring in the domestic labor market and economy.” “The pace of firings in the U.S. economy remains well above anything observed during the Great Financial Crisis,” he noted in a post on RSM’s blog. Similar article also featured in The Fiscal Times.
The Wall Street Journal, U.S. Retail Spending Grew at Slower Pace in August, Harriet Torry, 09/16/20: U.S. consumers increased retail spending in August for the fourth straight month but at a slower pace than earlier in the summer as the economy tried to recover with the coronavirus pandemic still under way…"It's a foreshadowing of things to come," said Joseph Brusuelas, chief economist at RSM US LLP. "The September spending data is going to be quite dour given the loss of $15 billion a week in income supplements." Also picked up in Morningstar.
San Antonio Express-News, Manufacturers weigh in on Trump vs. Biden, Diego Mendoza-Moyers, 09/16/20: President Donald Trump rode to office in 2016 on a surge of skepticism toward international trade and globalization, the invisible forces that Trump described as bringing “carnage” upon American communities and sucking away all the good jobs…“Given how large the (COVID-19) shock was to the economy, if someone asked me about policy recommendations, one of the first thing I would say is ... just say, ‘No more tariffs.’ Roll them all back to where we were,” said Joe Brusuelas, chief economist at RSM, a tax and consulting firm. “We need to actively engage the global economy in order to provide another engine of recovery and then expansion." Also picked up in the Houston Chronicle.
Washington Post, The Finance 202: New job postings are slowing, another sign the economic recovery is losing momentum, Tory Newmyer, 09/10/20: Job openings are leveling off. That's another flashing warning signal that the economic rebound is stumbling as Washington policymakers remain deadlocked on providing it with another injection of emergency support…From RSM chief economist Joseph Brusuelas: Today's JOLTS data permits me to update my estimate on the number of unemployed persons per job opening. Its improved from the peak of 4.6 in April to 2.5 in July.
Politico, Morning Money: The job market is still one giant mess, Ben White and Aubree Eliza Weaver, 09/10/20: We’ll get fresh data on initial jobless claims at 8:30 a.m. with expectations for a slight dip to 830,000 from 850,000. Important to remember this is still a massive number of new claims…Via RSM’s Joe Brusuelas: “Just as the coronavirus pandemic is forcing profound changes in the way Americans live and behave, it will also likely prove to be a catalyst for permanent changes in the economy and labor force.”
The Hill, Jobless claims steady at 884K despite decline in unemployment rate, Sylvan Lane, 09/10/20: New weekly claims for unemployment benefits stayed flat last week when adjusted for seasonal factors, but rose by more than 20,000 on an unadjusted basis, the Labor Department reported Thursday… “Through the week of August 22, there were 29.6 million individuals receiving some form of unemployment benefits,” wrote Joe Brusuelas, chief economist at tax and audit firm RSM. “This is not an encouraging evolution of the data.” Similar articles also featured in The Hill (2) and MSN News.
Barron’s, The Barron’s Daily: Growing Fear that the U.S. Is in for a K-Shaped Recovery, Ben Walsh, 09/08/20: Lockdown restrictions are dealing what may be a lasting blow to the finances of low-wage workers, even as wealthier Americans see their incomes rise. “When we talk K, the upper path of the K is clearly financial markets, the lower path is the real economy, and the two are separated,” Joseph Brusuelas, chief economist at RSM told CNBC.
Seeking Alpha, The 'K-Shaped' Recovery And The Need For More Fiscal Stimulus - Joe Brusuelas Talks With Alpha Trader (Podcast), 09/08/20: This week's Alpha Trader podcast features hosts Aaron Task and Stephen Alpher talking about the economy with Joe Brusuelas, chief economist at RSM US. Politicians and market participants can't get complacent about the economy despite a string of positive reports, says Brusuelas. The economy is only operating at 80% capacity.
International Business Times, What Is A 'K-Shaped Recovery'? Economists Worry About A Unequal Return From COVID Downturn, Thomas Kika, 09/05/20: The U.S. economy in recent weeks has made strides towards recovery from the COVID-19 pandemic, with states like New Jersey and California starting to allow indoor dining and movie theaters to resume. However, some economists have a less-than-rosy outlook on the country’s recovery potential…“The K-shaped recovery is just a reiteration of what we called the bifurcation of the economy during the Great Financial Crisis. It really is about the growing inequality since the early 1980s across the country and the economy,” said Joseph Brusuelas, chief economist at RSM. “When we talk K, the upper path of the K is clearly financial markets, the lower path is the real economy, and the two are separated.”
CNBC, Worries grow over a K-shaped economic recovery that favors the wealthy, Jeff Cox, 09/04/20: The story for much of the past generation has been a familiar one for the U.S. economy, where the benefits of expansion flow mostly to the top and those at the bottom fall further behind…“The K-shaped recovery is just a reiteration of what we called the bifurcation of the economy during the Great Financial Crisis. It really is about the growing inequality since the early 1980s across the country and the economy,” said Joseph Brusuelas, chief economist at RSM. “When we talk K, the upper path of the K is clearly financial markets, the lower path is the real economy, and the two are separated.”
Seeking Alpha, August jobs up an inline 1.37M; unemployment rate falls all the way to 8.4%, Liz Kiesche, 09/04/20: August nonfarm payrolls: +1.371M vs. +1.400M consensus and 1.734M in July (revised from +1.763M)…Excluding the hiring of census workers, the pace of hiring slowed to 1.1M from 1.7M in July, writes RSM US Chief Economist Joseph Brusuelas. Notable job gains reported in retail, professional and business services, leisure and hospitality, and education and health services.
Benzinga, A Look At Jobs Data Ahead Of Friday's Unemployment Rate Release, Robert Schultz, 09/03/20: For the week ending Aug. 29, the advance figure for seasonally adjusted initial unemployment claims was 881,000, the Department of Labor said — a decrease of 130,000 from the previous week's revised level…“Seasonal factors include (in its simplest form) the hiring of lifeguards in the late spring and then layoffs of those workers when beaches are closed in early fall,” Joseph Brusuelas, chief economist at RSM US LLP, said in an email.
Marketplace, The seasonal adjustment to jobless claims has been … adjusted, Mitchell Hartman, 09/03/20: This morning we had what seemed — at first — to be pretty darn good news. The Labor Department reported first-time unemployment claims, seasonally adjusted, were down by 130,000 last week to 881,000…So the Bureau of Labor Statistics stepped up to fix the methodology. Joseph Brusuelas at RSM, a consulting company, explains: “They went from what we call the ‘multiplicative’ to an ‘additive’ seasonal adjustment — and I’ll stop there before I put everybody to sleep.”
Reuters, With new monetary policy approach, Fed lays Phillips curve to rest, Jonnelle Marte, 08/28/20: One of the fundamental theories of modern economics may have finally been put to rest…The Fed chief, speaking during the Kansas City Fed’s annual conference, unveiled the central bank’s new approach to monetary policy, which puts more emphasis on shortfalls in employment, and less weight on the fear that low unemployment could spark higher inflation. “The conditions in the economy have changed to such an extent that this upwardly sloped relationship between inflation and employment has now changed,” said Joseph Brusuelas, chief economist for RSM. “Decades of thought at the Fed are now being pushed aside.” Also picked up in The New York Times, Yahoo! Finance and U.S. News & World Report, among others.
Wall Street Journal, WSJ Wealth Adviser Briefing: Broader Investor Access, Ford Workplace Revamp, Office Banter App, 08/27/20: America's small- and medium-sized businesses, a key source of employment, are about to face a worsening crisis, says Joseph Brusuelas, chief economist with RSM US. Without more government support, "there will be an increase in bankruptcies, followed by another round of job losses, this time tilted toward the permanent elimination of jobs," he says. "With roughly 40% of small firms facing an existential crisis and 32% of midsize firms expecting the initial round of PPP loans will not be forgiven, economic conditions inside the real economy are not improving to the point where the overall economy will be able to generate enough momentum to achieve escape velocity from recession gravity absent further aid from the federal government."
Politico, Big day for Powell and the Fed, Ben White and Aubree Eliza Weaver, 08/27/20: Fed Chair Jerome Powell speaks remotely at 9:10 a.m. to the Kansas City Fed’s annual Jackson Hole conference where he is expected to discuss about the central bank’s long-term plans to allow for somewhat higher inflation in an economy that remains staggered by the coronavirus pandemic…RSM’s Joe Brusuelas: “The condition of small and medium-size firms implies a potential inflection point in the nascent economic rebound following the near shutdown of the economy last spring. Without further reform and support of the signature Paycheck Protection Program … there will be an increase in bankruptcies, followed by another round of job losses, this time tilted toward the permanent elimination of jobs that support the bulk of the American middle and working classes.”
Los Angeles Times, Fed plans to keep interest rates low, even if inflation rises: Who stands to benefit?, Don Lee, 08/27/20: The Federal Reserve is likely to keep interest rates at rock bottom for even longer than previously expected after a major policy shift that has profound implications for Wall Street, workers and savers…“The Fed is explicitly signaling that it is going to permit the economy to run hot and the unemployment rate to drop lower than we otherwise would have over the past half-century,” said Joseph Brusuelas, chief economist at the accounting firm RSM US. “That clearly is a nod towards the lower- and moderate-income groups, which are made up of people of color. This is a big change. It’s a healthy nod to demands for reducing inequality and for social justice,” he said. Also picked up in Yahoo! Finance.
Consulting.us, Middle Market Business Index drops as companies lose optimism, 08/24/20: RSM US’ Middle Market Business Index (MMBI) dropped to 100.7 in July after reaching 109.1 in June, reflecting business leaders’ sentiment that the economic fallout of the pandemic will not be a short-term affair…"When we began to see shutdowns in late March/early April, business and policy leaders assumed it would be a short disruption, and policy expectations were formed around that," said Joe Brusuelas, RSM US chief economist. "We now know the pandemic will not be a 15-week affair, and firm leaders are hunkering down for what's to be an extended adjustment.” Similar articles also featured in Associated Press, Yahoo! Finance and MarketWatch, among others.
The Washington Post, The Finance 202: Economists talking up 'K shaped' recovery as stocks surge but inequality widens, Tory Newmyer, 08/19/20: The S&P 500 just closed at an all-time high, ending the shortest-lived bear market in U.S. history. The broad-based index has rallied more than 50 percent off the low it hit in late March amid pandemic panic…“It’s one recovery for financial market investors and another recovery for everybody else,” says Joe Brusuelas, chief economist at RSM…Fully 91 percent of the midsize firms that sought federal help through the Paycheck Protection Program plan to seek forgiveness of their loans, according to a new RSM survey. But only 68 percent of them are confident they will secure it, a gap that could weigh on hiring, Brusuelas argues.
U.S. News & World Report, Survey Finds Midsize Businesses Struggling Amid the Coronavirus Pandemic, Tim Smart, 08/18/20: An index that measures the health of mid-size businesses dropped to 100.7 in July from the prior month's reading of 109.1, showing a slowdown in economic activity in mid-June that began as the country struggled with a surge of new coronavirus cases. The RSM US Middle Market Business Index, done in partnership with the U.S. Chamber of Commerce, has been tracking the quarterly health of midsize firms since early 2015…"Following the burst of initial optimism that came with the reopening of the economy in May and early June, overall business conditions began to ease and then recede," said Joseph Brusuelas, chief economist at RSM US. Similar article also featured in Courthouse News Services.
Seeking Alpha, Wall Street Economists' Outlook, 08/14/20: The trajectory of the recovery according to the consensus is little changed from the Wall Street Journal's July survey - despite the derailment of the Phase 4 recovery package. However, more analysts perceive a "W" than before…Without an extension of benefits, "there will be an air pocket in the economy" in the third quarter, said Joe Brusuelas, chief economist at RSM US.
The Wall Street Journal, WSJ Survey: Benefits of Extra Unemployment Aid Outweigh Work Disincentive, David Harrison and Anthony DeBarros, 08/13/20: An overwhelming majority of economists surveyed this month by The Wall Street Journal said the economic benefits of additional jobless benefits to help laid-off workers outweighed concern that the extra payments could deter people from going back to work…Without an extension of benefits, “there will be an air pocket in the economy” in the third quarter, said Joe Brusuelas, chief economist at RSM US.
Bankrate, When will the U.S. economy get back on track following coronavirus shock? Watch for these 5 signs, Sarah Foster, 08/11/20: Not all recessions are created equally. Neither are the recoveries — and the biggest financial fear is that the current economic slump will persist years after the coronavirus is contained…“What I’m seeing here is a depression-like shock without a depression,” says Joe Brusuelas, chief economist at RSM. “We’re not going to flip a switch and the economy is going to open back up at once. It will take some time to ascertain where the longer-lasting damage is.” Also picked up in MSN Money.
Washington Post, U.S. economy added 1.8 million jobs in July as it worked to recover from the coronavirus pandemic, Eli Rosenberg, 08/07/20: The U.S. economy added 1.8 million jobs during the month of July, sending the unemployment rate down for the third straight month — a drop that fell in line with economist predictions and pointed to the recovery that began before infections started ticking up…“No one should take confidence in this report — the economy has moved sideways since June,” said Joseph Brusuelas, chief economist at RSM. “Any notion that the improvement in the top line provides a convenient excuse for policy makers to avoid hard decisions about more fiscal aid aimed at the unemployed should be summarily dismissed.”
Washington Post, Months into recession, Fed’s Main Street loan program is at a crossroads, Rachel Siegel, 08/07/20: For months, the Federal Reserve’s $600 billion Main Street lending program has been overshadowed by a lengthy rollout and little appetite from banks and businesses alike…Joseph Brusuelas, the chief economist at RSM, said he hears from banking clients reporting plenty of demand, and who say that loosening the terms would make a difference. “There’s plenty of scope to engage in reforms, and a more realistic regulatory framework, rather than just scrapping it,” Brusuelas said.
Business Insider, 5 charts from July's jobs report highlighting the US economy's post-pandemic recovery — and 3 showing how much further it has to go, Carmen Reinicke and Andy Kiersz, 08/07/20: The July jobs report, released by the Bureau of Labor Statistics on Friday, beat economist expectations and showed the recovery from the coronavirus pandemic-induced recession is continuing…"The recall of workers to their jobs slowed in July as evidence of a much greater problem in the domestic labor force mounts," said Joseph Brusuelas, chief economist at RSM, in a Friday note. "We take no comfort from this data given the move sideways in the U.S. economy since mid-June, and we are confident that the further recall of workers back to the labor force will fizzle in the August report."
Politico, Welcome to jobs day, Ben White and Aubree Eliza Weaver, 08/07/20: There is a huge margin of possible error for today’s July jobs report but the consensus is for a clear slowdown to a gain of 1.5 million from 4.8 million in June, reflecting the rise in Covid-19 cases, re-closed businesses and widespread employer concern about the direction of the virus and the economy…RSM’s Joseph Brusuelas to me: “I expect no change in total employment and an increase to 11.5 percent in the unemployment rate … The array of alternative data that we now have at hand all imply U.S. household consumption, hiring and the economy started to stall in mid to late June.”
Seeking Alpha, July payrolls up 1.76M; unemployment rate falls to 10.2%, Liz Kiesche, 08/07/20: July nonfarm payrolls: +1.763M vs. +1.6M consensus, 4.791M previous (revised from +4.800M)…That makes the July nonfarm employment lower than the February level by 12.9M, or 8.4%, points out RSM US Chief Economist Joseph Brusuelas. "There just are not enough jobs for the unemployed to return and should inform the urgency of another round of fiscal aid," he writes via Twitter.
The Hill, On The Money: Five takeaways from the July jobs report, Sylvan Lane, 08/07/20: The Friday release of the July jobs report gave a clearer view into a labor market clouded by mixed signals from real-time data and concerns about rising coronavirus cases across the country…“Any notion that the improvement in the top line provides a convenient excuse for policymakers to avoid hard decisions around a fifth round of fiscal aid aimed at the unemployed should be summarily dismissed,” wrote Joe Brusuelas, chief economist at tax and audit firm RSM, in a Friday analysis. Also picked up in MSN News.
Yahoo! Finance, July's jobs boom masks 'economic scarring' that could get worse if there's no stimulus deal, Javier David, 08/07/20: There was much to cheer in July’s surprisingly strong nonfarm payrolls report, but there is also just enough bad news to leaven an otherwise celebratory mood…Joe Brusuelas, chief economist at RSM, said on Friday that he takes “no comfort from this data given the move sideways in the U.S. economy since mid-June, and we are confident that the further recall of workers back to the labor force will fizzle in the August report.”
The Fiscal Times, 1.8 Million Jobs Added in July, but Recovery Slows, Michael Rainey, 08/07/20: The U.S. economy added 1.8 million jobs in July, the Labor Department said Friday, and the unemployment rate dropped to 10.2%, down from 11.1% the month before…Joseph Brusuelas, chief economist at the consulting firm RSM, said Friday that in his view, the U.S. is “clearly in the worst labor market since the Great Depression.” Separately, he told Politico that it is "absolutely critical to the economy" for Congress to make a deal for a new round of fiscal stimulus. “If the talks fail, the political sector is creating the conditions for at best a double dip recession or much longer downturn than would occur otherwise,” he said. Also picked up in Yahoo! Finance.
Politico, Trump’s economic comeback is becoming a slowdown and likely a stall-out, Ben White, 08/06/20: The U.S. job market recovery appears to be starting to stall, threatening President Donald Trump's narrative of a rapid American comeback and a quickly declining unemployment rate headed toward the November election…Another round of fiscal aid is "absolutely critical to the economy," said Joseph Brusuelas, chief economist at financial consulting firm RSM U.S. "If the talks fail, the political sector is creating the conditions for at best a double dip recession or much longer downturn than would occur otherwise.”
Marketplace, 30 million? 18 million? How many Americans are out of work right now?, Mitchell Hartman, 08/06/20: The Labor Department will release its employment report for July on Friday. The June report showed that nearly 18 million Americans were out of work…Economists like this number because it’s up to date and reflects the actual number of claims states processed last week, said Joe Brusuelas, chief economist at RSM consulting. “All of the people who were receiving some form of unemployment benefits — and that’s north of 31 million people,” he said.
Benzinga, What To Expect From July Unemployment Data: Economists Forecast Slowing Recovery, Robert Schultz, 08/05/20: National unemployment numbers for July are set to be released Friday by the Bureau of Labor Statistics, and experts are expecting an increase in the unemployment rate…Joe Brusuelas, chief economist at RSM US LLP, said he expects the national unemployment rate increase to 11.5% for the month of July. Also picked up in Yahoo! Finance.
TD Ameritrade, Gold Reaches Record High, Joe Brusuelas Weighs in, 07/31/20: “V is not for the shape of the recovery. V is for vaccine. No vaccine, no recovery. Full stop.” From big tech earnings beats, to signals of concern from the Fed, Joe Brusuelas weighs in on this week’s market moving events with Nicole Petallides.
Benzinga, American Income Drops While Spending Increases: Breaking Down The Numbers, Robert Schultz, 07/31/20: Personal income decreased by 1.1% to $222.8 billion in June, while personal consumption expenditures increased by 5.6% to $737.7 billion, according to estimates released Friday by the Bureau of Economic Analysis…“Spending by wealthy households has declined by 9.8% relative to January 2020. Spending by middle-income consumers has dropped by 5.3% and lower income consumers by 2.3%,” RSM Chief Economist Joe Brusuelas said in an email to Benzinga. Also picked up in Yahoo! Finance.
CNBC, The worst might be over for the economy, but the future’s not so bright, either, Jeff Cox, 07/30/20: When what had been a finely tuned $21.7 trillion economy came to a screeching halt in March due to the coronavirus pandemic, expectations that were that the decline would only be temporary and the reopening would feature a swift, aggressive recovery…“The premature opening of the economy is beginning to rear its ugly head,” said Joseph Brusuelas, chief economist at RSM. “Over the last six weeks, the economy has begun to move sideways and is beginning to look as if it is stalling out.” Similar articles also featured in CNBC and Invezz.
Business Insider, US GDP report showed 'how big of a hole we have to dig ourselves out of': Here's what 5 economists are talking about following the record output slump, Carmen Reinicke, 07/30/20: Even though US gross domestic product posted a record slump in the second quarter, it wasn't quite as bad as economists were expecting from the worst months of the coronavirus pandemic lockdowns…"The reopening of the economy that began around May 1 resulted in a far more muted decline that was tracking near 50% in April," said Joseph Brusuelas of RSM in a note Thursday. "And that is about the only good thing that could be said about an absolutely devastating growth report released by the Commerce Department on Thursday."
Austin Chamber of Commerce, Mid-year economic update: What does recovery look like?, 07/29/20: On Tuesday, July 21st, we were joined by RSM’s Chief Economist Joe Brusuelas as he covered the economic impact of the pandemic, monetary and fiscal policy responses, and what economic recovery may look like.
Washington Post, With stimulus in flux and infections on the rise, focus is on Powell to outline the fate of the economy, Rachel Siegel, 07/28/20: When the Federal Reserve meets this week, investors and policymakers alike will pay close attention to how Fed Chair Jerome H. Powell characterizes the state of the economy — and the extent to which he flags the worsening pandemic and chaos over the next round of stimulus as risks to the recovery…“The Federal Reserve is in transition between a policy strategy that’s obviously undergone tremendous stress, to one in which they’re going to shape the post-pandemic economy,” said Joe Brusuelas, chief economist at RSM. “The context around that is with Congress and the administration at loggerheads on aid, the Fed remains the only one in town.”
Axios, America's two coronavirus realities, Dion Rabouin, 07/28/20: The coronavirus-driven recession is creating two parallel economic realities and they are growing further apart by the day…The U.S. savings rate rose to a record 32.2% in April and was at 23.2% in May. It was around 8% in February and for most of 2019. That increase comes from the wealthy, as working class Americans on average have little or no savings, Joe Brusuelas, chief economist at tax services firm RSM, notes.
CNN Business, The economy could fall off a fiscal cliff, Paul La Monica, 07/27/20: The economy is once again teetering on the edge of a so-called fiscal cliff. Investors don't seem to care…"The delegation of addressing the pandemic to the states, and what can fairly be described as the abdication of any responsibility for the pandemic on the part of the federal government, have contributed to a debilitating sense of policy uncertainty that is dampening economic activity," said Joseph Brusuelas, chief economist with RSM US LLP, in a report earlier this month. Also picked up in MSN Money.
The Hill, Slip in job growth raises fear of broader relapse, Sylvan Lane, 07/26/20: The job market recovery from the coronavirus recession is faltering as the U.S. braces for a steep decline in fiscal support from Congress despite the burgeoning pandemic…“Because of the inability of the political sector to put in place another round of aid in a timely manner, investors should anticipate a significant slowing in household spending and another round of permanent job losses,” wrote Joe Brusuelas, chief economist at audit and tax firm RSM, in a Wednesday research note.
Business Insider, The US's $600 unemployment boost expires today. Here's a list of 4 other programs set to end soon., Carmen Reinicke, 07/25/20: The US is facing a number of expiring policies that could spell disaster for the economic recovery as the country continues to grapple with the coronavirus pandemic…"Because of the inability of the political sector to put in place another round of aid in a timely manner, investors should anticipate a significant slowing in household spending and another round of permanent job losses," Joseph Brusuelas, chief economist at RSM, wrote in a Wednesday note. Also picked up in Markets Insider.
The Fiscal Times, The Battle Over Unemployment Benefits, Michael Rainey, 07/24/20: Unable to agree on a variety of important details, Republicans have pushed the release of their still-developing coronavirus relief package to next week, and the delay all but guarantees that the bill won’t be ready for President Trump’s signature until next month…Joseph Brusuelas, chief economist at the consulting firm RSM, said this week that the “lapse in aid to 20 million Americans that pumped roughly $116 billion into the economy in June alone will result in a slower rebound in overall economic activity during the current quarter.” Also picked up in Yahoo! Finance.
CCN, The Stock Market May Run Out of Gas – But Not This Gold Rally, Joseph Young, 07/24/20: The price of gold has rallied by 30% since March 20, from $1,454 to $1,892. It is now merely $30 away from reaching a new record high for the first time since 2011… Economists, like Joe Brusuelas at RSM International, said premature actions to reopen the U.S. economy led to slower growth. Similar article featured in Wealth Advisor.
Washington Post, ‘A Band-Aid on a bullet wound:’ Workers are getting laid off anew as PPP runs out, Eli Rosenberg, 07/23/20: The phone stopped ringing at Tammy Nelson’s auto-body shop in Broomfield, Colo. back in March. The normally four-to-six week wait for customers looking to have dents or bumps fixed on their cars disappeared, leaving the shop silent. Nelson and her husband, Scott, applied in April for a loan from the Payment Protection Program — the federal government’s chaotic $660 billion aid program meant to help businesses and their workers stay afloat…“There’s not sufficient demand to support the employment of people at companies that received PPP,” Joseph Brusuelas, chief economist at RSM said. “Investors and legislators should brace themselves for another round of joblessness.”
Washington Post, New unemployment insurance claims rise for the first time since March, Eli Rosenberg, 07/23/20: The number of new unemployment claims rose for the first time in months last week, to 1.4 million — a troubling sign for the labor market that’s weathering a new round of closures as the pandemic spreads…“What you’re seeing is that, as the economy slows, the pace of claims picks back up — which really puts at risk the monthly jobs report over the next few months,” said Joseph Brusuelas, the chief economist at RSM. “The July numbers are going to be tenuous, but it’s August that I’m worried about.”
CNN Business, The economy is in deep trouble again. Coronavirus is to blame, Matt Egan, 07/23/20: Restaurant reservations are waning. The rebound in air travel is leveling off. And foot traffic at stores is dwindling once again. There is mounting evidence that America's fragile economic recovery is already stalling as the number of coronavirus infections and deaths spike…"The premature reopening of the U.S. economy has resulted in an intensification of the pandemic, which is now causing growth in the economy to slow," Joe Brusuelas, chief economist at RSM International, wrote in a note to clients Tuesday. Also picked up in MSN Money.
Washington Post, The Finance 202: New signs show the economic rebound is skidding as coronavirus cases surge, Tory Newmyer, 07/23/20: The economy is sending up alarms across the map, showing how the pandemic's resurgence is dragging a fledgling rebound back into a skid…And with state and local leaders reimposing restrictions where the coronavirus is spiking again, consumers have already moved to isolate themselves and close their wallets, observes Joseph Brusuelas, chief economist for the consultancy RSM. He says real-time indicators, from OpenTable restaurant reservations to Apple mobility data showing how widely people are roaming, imply “the public is not yet ready to go back to crowded restaurants or send their kids back to school. And they are likely to hold back on a whole array of consumer-based activities because they require closer proximity to other individuals.”
Politico, Payroll tax cut in doubt, Ben White and Aubree Eliza Weaver, 07/21/20: The economy is not going to kick back into gear absent a Covid-19 vaccine and the market recovery that began in March is at risk of fading. Via RSM’s Joe Brusuelas, Adam Lohr and Brandon Koeser: “It is becoming quite clear that absent an accessible and widely distributed vaccine, that there will be no complete economic recovery. “What originally was thought to be a 15 week problem has quickly evolved into something that looks more like a 15-month challenge. The premature reopening of the U.S. economy has resulted in an intensification of the pandemic, which is now causing growth in the economy to slow. … No vaccine, no recovery.”
TD Ameritrade Network, Joe Brusuelas On How To Measure Economic Impact Of Covid-19 Pandemic, 07/16/20: RSM’s Joe Brusuelas joins TD Ameritrade’s “Morning Trade Live” to discuss how to measure the economic impact of the Covid-19 pandemic.
Consulting.ca, Short-term data shows economic activity rising, but industry still in shock, 07/15/20: As provinces slowly reopen, high-frequency alternative data sources – such as consumer sentiment, traffic congestion, restaurant bookings, and oil and gas rig counts – point to increasing economic activity. According to consulting firm RSM, the index increased to its highest level since the end of March, reaching 42 as of July 5. Increasing traffic congestion and public transportation use suggest relatively strong job gains in major urban centres, according to the report…"The pandemic has certainly dealt a tough blow to Canada's industrial sector – an area already struggling back in 2019 as a result of the ongoing trade war between the U.S. and China," said Joe Brusuelas, chief economist with RSM US.
Financial Post, COVID-impact survey shows signs of recovery, but businesses will keep tight watch through fall, Barbara Shecter, 07/14/20: The Canadian employment picture brightened in June, with employers planning to keep staff and even hire after the harrowing effects of efforts to contain the fast-spreading novel coronavirus in the spring, according to a survey released Tuesday by Statistics Canada…Economic recovery will vary depending on the sector, according to tax, audit and consultancy firm RSM Canada, which released a separate report Tuesday. Alex Kotsopoulos, a partner at RSM Canada, said the overall Canadian economy is performing better than predicted following a slow and staggered reopening in the provinces following March shutdowns…“The pandemic has certainly dealt a tough blow to Canada’s industrial sector — an area already struggling back in 2019 as a result of the ongoing trade war between the U.S. and China,” said Joe Brusuelas, chief economist with RSM US LLP. Similar articles also featured in MSN Money, Yahoo! Finance and Benzinga, among others.
CNN Business, Why it pays to be a chain during a pandemic, Julia Horowitz, 07/10/20: Companies often talk about the benefits of scale. And during a pandemic, it appears bigger can be better…The numbers should bolster Congress' resolve to pass additional stimulus measures, which are currently locked in partisan negotiations, said Joseph Brusuelas, chief economist at RSM. But he warned that "fiscal fatigue" appears to be taking hold. Also picked up in MSN Money.
CNN Business, Americans are rapidly shrinking their credit card debt during the pandemic, Matt Egan, 07/09/20: Americans' credit card debt is shrinking rapidly during the coronavirus recession. That's a sharp contrast with the last two economic downturns…At the same time, Americans are wisely paying down outstanding credit card balances and avoiding racking up new debt during this economically tumultuous period. "Americans are behaving in an eminently rational fashion," said Joe Brusuelas, chief economist at RSM International.
Benzinga, RSM Economist Sees 3 Fiscal Cliffs Ahead For Nation's Unemployed, Robert Schultz, 07/09/20: For the week ending July 4, the advance figure for seasonally adjusted initial unemployment claims was 1,314,000, representing a 99,000-claim week-over-week drop, according to the Labor Department…Joe Brusuelas, chief economist at RSM, said the estimated 32.9 million people receiving some kind of unemployment aid has major implications. Three cliffs are ahead, the economist said: the July 28 expiration of the federal moratorium on evictions, the July 31 fiscal cliff regarding the CARES Act and the Aug. 8 expiration of the Paycheck Protection Program. Also picked up in Yahoo! Finance.
Yahoo! Finance, Coronavirus surge has economists not believing ‘hype’ of June jobs blowout, Javier David, 07/02/20: First, the good news: June saw a second consecutive month of record-breaking job market gains, with nearly 5 million people getting back to work as coronavirus-related lockdowns were relaxed…“The major concern is that the headlines will lead some to conclude that it is time to close the door or pull back aid to those out of work, said Joe Brusuelas, chief economist at RSM. “In our estimation that would be a serious policy error that would put in jeopardy a nascent recovery that we think is in play,” he said.
The Hill, Economy adds 4.8 million jobs in June, surpassing expectations as coronavirus lingers, Sylvan Lane, 07/02/20: The U.S. economy added 4.8 million jobs in June, according to data released Thursday by the Labor Department, as the gradual easing of coronavirus-related restrictions helped more businesses reopen and bring back workers…“By the time the June jobs report comes out, we will have already started estimating the damage to the labor market wrought by pullbacks and shutdowns of business because of an intensification of the pandemic,” wrote Joe Brusuelas, chief economist at tax and audit firm RSM, earlier in the week in a preview of the jobs report.
Seeking Alpha, Another jobs blowout - June payrolls up 4.8M, unemployment rate falls to 11.1%, Liz Kiesche, 07/02/20: June nonfarm payrolls: +4.800M vs. +3.00M consensus and +2.699M previous (revised from +2.5M)…Says RSM US Chief Economist Joseph Brusuelas: The bottom line is it's a "solid number of recalled workers." Still, with 31.49M people on some form of unemployment insurance, "Congress has to provide more policy support."
Yahoo! Finance, ‘We’re going to need to see sustained aid going forward’: RSM Chief Economist, 07/02/20: Joe Brusuelas, Chief economist at RSM, joins The First Trade to discuss the June Jobs Report and what it means for the economy moving forward.
Marketplace, Miscalculation of unemployment data not easy to fix, Andy Uhler, 07/01/20: We should know more about the national unemployment picture on Thursday, when the Labor Department releases its monthly jobs report…“What we have is a coding problem,” said Joe Brusuelas, chief economist at RSM. But he added that the problem isn’t like the kind of coding that goes into software. “We have individuals interviewing people who say, ‘Well, I’m a stadium worker, but there’s no work.’ They were classified as employed when they should have been classified as unemployed,” he said.
Business Insider, Economists expect the US added 3 million jobs and that the unemployment rate declined in June. Here's what to watch in Thursday's report., Carmen Reinicke, 07/01/20: Businesses in June likely continued to hire as most states across the US went forward with reopening plans following coronavirus-pandemic lockdowns earlier in the year…"There's quite a bit of work yet here," Joe Brusuelas, chief economist at RSM, told Business Insider. He added that on Thursday, he's "not giving a lot of emphasis to the top line." Also picked up in MSN Money.
Axios, Personal income is on a worrisome path, Dion Rabouin, 06/29/20: Americans' personal income fell 4.2% last month, which was better than expected, but remained supported by increased government spending on unemployment benefits, food stamps and other generalized welfare payments that are all at never-before-imagined highs…"It is clear that following the one-time bounce in spending observed this month, income and savings dynamics are moving in a direction that suggests that a general paradox of thrift has, for now, captured wealth households," Joe Brusuelas, chief economist at RSM, wrote in a note to clients.
Washington Post, Another 1.48 million workers are newly unemployed, Eli Rosenberg, 06/25/20: Another 1.48 million people applied for unemployment for the first time last week, a slight decrease from the week before and the 14th straight week that more than 1 million people have filed for unemployment…Joseph Brusuelas, chief economist at RSM, likened the situation to a classic war film, “Tora! Tora! Tora!” which depicts a Navy captain refusing to act in defense of Pearl Harbor until he received confirmation of an attack was coming from, as ships exploded around him. “I think that’s a pretty good allegory for where we’re at right now,” he said.
CNN Business, Apple and Disney prove reopening isn't easy, Julia Horowitz, 06/25/20: Companies that were forced to shut down parts of their business due to Covid-19 have seen this summer as a chance to start getting back on track…Economists are referencing 1930s-era trade policy again as Trump ramps up trade fights with two of the nation's biggest trading partners — threatening to slap tariffs on goods from Europe like chocolate and butter, and reportedly pushing to reimpose tariffs on aluminum imports from Canada, my CNN Business colleague Matt Egan reports. "This is exactly the wrong move at the wrong time. We're inching toward the same mistakes we made during the Great Depression," said Joe Brusuelas, chief economist at RSM International.
Benzinga, Initial Jobless Claims Top 1M For 14th Week, Economist Sees 'Most Significant Fiscal Cliff' In US History Ahead, Robert Schultz, 06/25/20: Americans made 1.480 million initial jobless claims in the week ending June 20, a decrease of 60,000 from the prior week, the Department of Labor said Thursday…"If one was looking for confirmation on whether further aid for the unemployed and the economy is necessary, it’s there in plain sight," Joe Brusuelas, chief economist at RSM US LLP, said in a Thursday note. Also picked up in Yahoo! Finance.
The Fiscal Times, More Job Losses Suggest Economy Will Need Another Boost, Michael Rainey, 06/25/20: Nearly 1.5 million people filed for state unemployment benefits last week, the Department of Labor announced Thursday, bringing the 14-week total for first-time claims to about 47 million…Joseph Brusuelas, chief economist at the consulting firm RSM, said Thursday that by his calculation, more than 2 million people have filed for unemployment aid of some kind every week for the past 10 weeks. Also picked up in Yahoo! Finance.
CNBC, The Fed said it could supply the economy with $2.3 trillion. It hasn’t come close so far, Jeff Cox, 06/24/20: When the coronavirus pandemic locked up capital markets and pulled the economy into recession, the Federal Reserve took aim with a $2.3 trillion bazooka to try to help. Thus far, though, the central bank has only fired off surprisingly few rounds…“Should the uptake not be what the central bankers want, there is ample room for reform of the program’s basics,” Joseph Brusuelas, chief economist at RSM, said in a note. “The creation of the Main Street Lending Program represents the first modern attempt to create a market for firms that constitute the beating heart of the real economy.” Also picked up in MSN Money.
CNN Business, Trump's latest moves aren't exactly a winning economic -- or reelection – strategy, Matt Egan, 06/24/20: President Donald Trump's latest economic policies are the opposite of the emergency aid that Corporate America and Wall Street are clamoring for…"This is exactly the wrong move at the wrong time. We're inching toward the same mistakes we made during the Great Depression," said Joe Brusuelas, chief economist at RSM International.
CNN Politics, Emergency small business loans helped, but they won't be enough, Katie Lobosco, 06/23/20: Congress' $650 billion forgivable loan program helped small business owners keep millions of people on their payrolls as states imposed shutdowns, but some lawmakers and economists say more aid will be needed to make sure they recover in the long term…"The lift in recalled workers does not mean that the 20.9 million unemployed will not require sustained policy attention," said Joe Brusuelas, chief economist at RSM.
Reuters, U.S. weekly jobless claims remain high, second wave of layoffs blamed, Lucia Mutikani, 06/18/20: A second wave of layoffs amid weak demand and fractured supply chains is likely keeping new U.S. applications for unemployment benefits elevated, supporting views that the economy faces a long and difficult recovery from the COVID-19 recession…“There are continued layoffs across industrial sectors with some risk to white collar jobs as we move past this tranche of government aid,” said Joe Brusuelas, chief economist at RSM in New York. “There are concerns of bankruptcies, which will force firms to reduce head count.” Also picked up in The New York Times, Business Insider and Fox Business, among others.
Benzinga, New Jobless Claims Continue To Fall, But Exceed Estimates: 'They Turned Down The Heat In Hell', Robert Schultz, 06/18/20: Americans made 1.5 million new jobless claims in the week ending June 13, down 58,000 from the prior week, the Department of Labor said Thursday…“While the pace of first time jobless claims has declined over the past few weeks, that is a little like saying they turned down the heat in hell,” Joe Brusuelas, chief economist at RSM, said in an email Thursday. “The pre-pandemic peak for continuing claims was 6.6 million for the week ending May 29, 2009 during the Great Financial Crisis,” Brusuelas said. Also picked up in Yahoo! Finance.
Bankrate, Second stimulus check and extended unemployment benefits? Here’s what aid could be on the way, Sarah Foster, 06/17/20: The U.S. economy is showing signs of healing, months after Congress pumped trillions of dollars into the financial system as a backstop against the harshest downturn in decades. But experts say a long road lies ahead for the economy on its path back to normal following the effects of the coronavirus crisis…“Stimulus fatigue is at the top of my economic risks at the current time,” says Joe Brusuelas, chief economist at RSM. “Deep recessions or depressions are not fate; they’re policy choices. And right now, an optimal policy choice would be putting forward another round of aid.”
CNN Business, Inequality in America was huge before the pandemic. The stock market is making it worse, Julia Horowitz, 06/17/20: The gap between the world's rich and poor is expected to grow due to the pandemic, and a stock market high on government and central bank cash bears much of the blame… "While there is nothing wrong with traders and investors profiting from timely and smart speculative activity, the growing disconnect between the economy and equity markets is going to cause increased social tensions," said Joseph Brusuelas, chief economist at the auditing firm RSM.
Marketplace, Retail sales were way up in May. But don’t pop the Champagne just yet., Sabri Ben-Achour, 06/16/20: The Commerce Department released retail sales numbers Tuesday, and they were eye-popping — up 17.7% in the month of May…They will not, according to Joe Brusuelas, chief economist at RSM. “My sense is that the public doesn’t quite understand — nor do policymakers, for that matter — the fiscal cliff that awaits the economy in just six weeks,” Brusuelas said.
Washington Post, Another 1.5 million workers filed for unemployment insurance, Eli Rosenberg, 06/11/20: Another 1.5 million people applied for unemployment insurance for the first time last week, adding to the tens of millions who have applied for the benefits since the pandemic began and continuing a months-long downward trend in initial claims…“Some may have returned to work,” said Joseph Brusuelas, the chief economist at RSM, an accounting firm network. “But that’s a stunning number nonetheless.” Similar article featured in Insurance News Net.
Wall Street Journal, WSJ Survey: U.S. Recovery From Pandemic Shock to Begin by Third Quarter, Harriet Torry and Anthony DeBarros, 06/11/20: The U.S. economy will be in recovery by the third quarter of this year, economists said in a survey that also concluded the labor market will fare better than previously expected following the effects of the coronavirus pandemic…Joseph Brusuelas, chief economist at RSM US, said he is “not looking forward to an elongated and frustratingly slow recovery.”
CNN Business, Wall Street's party is over. Coronavirus fears are back, Matt Egan, 06/11/20: The runaway train on Wall Street has been derailed by a force nearly as powerful as easy money: a healthy dose of reality. The Dow plunged 1,862 points, or 6.9%, on Thursday in the biggest selloff since March 16. Even the previously red-hot Nasdaq tumbled 5.3% back below the 10,000 level…"Mass unemployment is going to be the primary condition that defines the economic narrative going forward," Joe Brusuelas, chief economist at RSM International, wrote in a report Thursday. Also picked up in MSN Money.
Yahoo! Finance, Fed will not lift rates until 2023 at the earliest: Economist, 06/10/20: RSM Chief Economist Joe Brusuelas joins Yahoo Finance’s On The Move panel to discuss how the world economy is at risk over the coronavirus crisis.
Washington Post, Federal Reserve predicts slow recovery with unemployment at 9.3 percent by end of 2020, Heather Long, 06/10/20: Federal Reserve leaders predict a slow recovery for the U.S. economy, with unemployment falling to 9.3 percent by the end of this year and to 6.5 percent by the end of 2021, after tens of millions of Americans lost their jobs in the stunning recession caused by the outbreak of the novel coronavirus…“It is clear that the Fed does not anticipate a V-shaped economic recovery and is positioned to move forcefully to support the economy if there is an error in trade or fiscal policy,” said Joseph Brusuelas, chief economist at RSM, in a note to clients.
Associated Press, Fed to keep providing aid and sees no rate hike through 2022, Chris Rugaber, 06/10/20: Confronted with an economy gripped by recession and high unemployment, the Federal Reserve signaled Wednesday that it expects to keep its key short-term interest rate near zero through 2022…“It is clear that the Fed does not anticipate a V-shaped economic recovery and is positioned to move forcefully to support the economy,” said Joe Brusuelas, chief economist at RSM, referring to an economy that snaps back as quickly as it shrank. Also picked up in The New York Times, ABC News and U.S. News & World Report, among others.
Washington Post, The Finance 202: Republicans, Democrats split on economy, as the recession becomes official and stocks soar, Tory Newmyer, 06/09/20: Monday was the day that the recession became official, as the longest U.S. economic expansion in records dating back to 1854 received its death warrant…“Not only is there a significant risk of another market crash, but if equity markets continue to defy gravity without a meaningful recovery on Main Street, the legitimacy of the market and capitalism itself will come under further scrutiny,” Joseph Brusuelas, chief economist for the consultancy RSM, argues. But as voters use partisan lenses to peer through the dust kicked up by the economic collapse, there is little evidence of that yet.
Axios, The Federal Reserve to take on more risk to aid small business loan program, Dion Rabouin, 06/09/20: The Fed expanded yet another of its special purpose vehicles Monday, increasing eligibility for its Main Street Lending Program and raising the percentage of the loans that it will take on to 95%..."The Fed simply views the risks that they are taking as commensurate with the true needs of Main Street," Joe Brusuelas, chief economist at tax and consulting firm RSM, tells Axios.
The Hill, Job gains show signs of widening racial divide, Sylvan Lane, 06/09/20: The rising tide of the U.S. labor market is failing to lift all boats. African Americans were largely left out of the surprising job gains in May, highlighting long-standing obstacles and new threats facing black workers amid the pandemic recession…“The economic fallout from the coronavirus and the recent civil unrest have placed an uneasy spotlight on the disparity in employment opportunities among ethnic groups in the United States,” wrote Joe Brusuelas, chief economist at tax and audit firm RSM, in a Friday research note.
Seeking Alpha, Caveat Emptor: The 3 Most Dangerous REIT Property Sectors, Brad Thomas, 06/09/20: In a recent edition of Barron's, Lawrence C. Strauss explained: Three sectors have borne the brunt of dividend cuts and suspensions this year in wake of the coronavirus pandemic: Energy, consumer discretionary, and industrials…Joseph Brusuelas, chief economist at RSM, explained to CNBC: "We will see people come back to work rapidly. It will take six to 12 months to unfold, but not everyone is going to get their job back because there are going to be bankruptcies. Depending on what industrial ecosystem one sits in, your relative recovery and expansion is going to look very different."
Associated Press, Fed acts to broaden appeal of ‘Main Street’ lending program, Chris Rugaber, 06/08/20: The Federal Reserve is expanding the range of companies that will qualify for its soon-to-begin Main Street Lending Program, in which the Fed will lend directly to individual companies for the first time since the Great Depression…The Fed’s move “should attract a wider range of participants,” said Joe Brusuelas, chief economist at RSM, a tax and advisory firm. It “bolsters the probability of a successful start to what we think is a sorely needed program.” Also picked up in The New York Times, ABC News and Yahoo! Finance, among others.
CNN Business, The recovery is underway. Does that mean it's time for more stimulus?, Julia Horowitz, 06/07/20: Record stimulus efforts are facilitating the global recovery from the steepest economic downturn since the Great Depression. That means it's time to spend even more, investors and economists say…Joseph Brusuelas, chief economist at RSM, said it's a sign that stimulus programs such as the Paycheck Protection Program, which provides emergency loans to struggling small businesses, have been effective.
The Hill, White House gets jolt from strong jobs report, Morgan Chalfant and Brett Samuels, 06/06/20: White House hopes for a swift economic recovery from the miseries of the coronavirus pandemic received a major jolt on Friday with a surprise jobs report that found the unemployment rate fell in May and the country actually added 2.5 million jobs…Forgoing another stimulus package is “the biggest risk right now to the directional improvement of an economy that is still in recession,” said Joe Brusuelas, chief economist at tax and audit firm RSM. “If the unemployment benefits aren't renewed, what you'll see is what financial professionals call ‘up the escalator, down the mineshaft.’” Also picked up in MSN News.
Washington Post, Unemployment rate drops and 2.5 million jobs added, after states reopened, Eli Rosenberg and Heather Long, 06/06/20: The federal unemployment rate dropped in May for the first time since the coronavirus sent the economy into a tailspin, the strongest sign yet that the economic damage is bottoming out — although 21 million people remain out of work…In a note sent Friday, economist Joseph Brusuelas of RSM said that the labor-market numbers indicated that the government’s Paycheck Protection Program, meant to incentivize businesses to keep employees on, had worked.
Marketplace, Economists expected more job losses. The economy added 2.5 million instead., Mitchell Hartman, 06/05/20: No one saw this one coming. Many were expecting 7, maybe 10 million more jobs lost in the May jobs report. Instead, 2½ million jobs were added back, and the unemployment rate actually fell…Joe Brusuelas at RSM Consulting saw the turnaround in real-time consumer activity. “Stores opening, TSA data and road congestion — all of which clearly implied that the worst was behind us and a very modest recovery had started,” he said.
Wall Street Journal, The Bulls Have Taken Back the Stock Market, Paul Vigna, 06/05/20: The bulls are in the driver’s seat again. Stocks rose this week, with investors seizing on incrementally good economic news and ignoring the clashes in the streets, the odds of a long, drawn-out recovery and even the potential resumption of the U.S.-China trade war…If this continues, “there’s going to be calls on the legitimacy of these markets,” said Joseph Brusuelas, chief economist at RSM US. “What happens when that occurs is it opens a door to overregulation.” Also picked up in Fidelity.
CNN Business, US billionaires have regained $565 billion in wealth since the pit of the crisis, Matt Egan, 06/05/20: The past three months have been financially painful for many Americans -- but not for billionaires. US billionaires have become $565 billion richer since March 18, according to a report published Thursday by the Institute for Policy Studies, a progressive think tank…"You've got a combustible concoction of lost income and inequality," said Joe Brusuelas, chief economist at RSM International.
CBS Moneywatch, Unemployment in the U.S. falls to 13.3%, confounding forecasters, Irina Ivanova, 06/05/20: Unemployment around the U.S. declined slightly in May, falling to 13.3% as the economy showed signs of recovering from the impact of nationwide shutdowns caused by the coronavirus… "I'm really concerned about workers who are well-paid public-sector employees because of the hole that has been blown in state and local budgets," Joe Brusuelas, chief economist at global accountancy RSM, told CBS MoneyWatch this week. "It doesn't look like any fiscal rescue is coming, and you'll begin to see those 20% across-the-board reductions which hit teachers, police, firemen [and] administrators."
Business Insider, 'Greatest miss in forecasting history': 4 economists and strategists react to Friday's surprising May jobs report, Carmen Reinicke, 06/05/20: The May jobs report on Friday came as a surprise to many when it showed that the US economy added payrolls in the month and that the unemployment rate declined, signaling an earlier-than-expected rebound from the coronavirus pandemic…"The impressive number of recalled workers implies three takeaways from the May employment report," said Joe Brusuelas, chief economist at RSM, in a Friday note. Also picked up in MSN News and Markets Insider.
Benzinga, Rocket Ship? Experts React To Shocking May Jobs Report, Wayne Duggan, 06/05/20: The SPDR S&P 500 ETF Trust gained 2.56% on Friday after the Labor Department reported one of the most surprising monthly jobs reports of all time…RSM Chief Economist Joseph Brusuelas said the jobs number demonstrates the Paycheck Protection Program was a success, furloughed workers were not discouraged to return to work by the extra $600 per week in unemployment payments and the Pandemic Assistance Unemployment program helped bridge the gap to normalization of the labor force. Similar articles featured in Yahoo! Finance, Seeking Alpha, FreightWaves and Benzinga, among others.
Axios, The stock market rally is ignoring cratering earnings per share estimates, Dion Rabouin, 06/04/20:In addition to largely ignoring economic data, the stock market's rally is defying cratering earnings per share estimates…"The market is broken," Joe Brusuelas, chief economist at RSM International, said in an interview with CNN Business. "It no longer reflects a forward outlook that is truly aligned in the real economy," he said. "That's a problem because, at some point, the public will say these markets are rigged."
Politico, Some green shoots emerge, Ben White and Aubree Eliza Weaver, 06/04/20: Initial jobless claims at 8:30 a.m. expected to dip to 1.8M from 2.1M. House Oversight committee holds a remote hearing at noon on racial health disparities in the coronavirus pandemic…RSM’s Joe Brusuelas: “We expect the U.S. economy to shed 7.8 million jobs and the unemployment to reach 21.5% when the May U.S. employment estimate is released on Friday.”
CNN Business, America is in turmoil and stocks are booming. Is the market broken?, Matt Egan, 06/03/20: The stock market is not the economy. But rarely has the gap between Wall Street and Main Street felt so wide…Joe Brusuelas, chief economist at RSM International, said he can't recall a time when the disconnect between Wall Street and the real economy was this great. He blamed in part the sharp decline in the number of public companies in the United States. "The market is broken. It no longer reflects a forward outlook that is truly aligned in the real economy," he said. "That's a problem because at some point, the public will say these markets are rigged.
Washington Post, ‘I don’t even know how the dominoes fell’: Gripped by recession, some businesses evolve — but struggle to see a path to full recovery, Rachel Siegel, 06/03/20: In the weeks since the coronavirus pandemic emptied her calendar of weddings, fundraisers and corporate events, Anita Ellis still rises at 6 a.m. to make her customary triple espresso, then climbs back into bed and refreshes her email…“Reevaluating what you’re doing and how you operate [are] matters of survival,” said Joe Brusuelas, chief economist at RSM. “Supply chains that support that portion of the economy are going to be fundamentally altered.”
Business Insider, One stunning chart shows the success of federal aid in helping financially struggling households, Joseph Zeballos-Roig, 06/01/20: As lawmakers debate the extent of further government intervention for another federal spending package, the pandemic continues slamming people's livelihoods and throwing millions into a world of uncertainty…Joseph Brusuelas, chief economist for RSM, said government aid was a critical element in salvaging incomes. "Lost jobs and income thus far have been partially offset by the $1,200 aid check sent to most citizens and the extra $600 per week distributed to those put out of work due to the pandemic," he wrote in a Friday blog post. "In fact, that is the reason why personal disposable income inside the data has not completely collapsed."
Business Money, BoE projections unhelpful for businesses on the brink says RSM, 06/01/20: This week RSM voiced concern over what it called the Bank of England’s (BoE) overly optimistic economic outlook at a time when businesses need to be ‘hoping for the best yet planning for the worst’ to give themselves a fighting chance of survival… Joe Brusuelas, chief economist at RSM US comments: ‘Given that the Bank of England is openly considering the adoption of nominal negative interest rates, that strongly implies a lack of confidence in the central bank’s forecast of a V shaped recovery by its own members. Rather, one should expect a frustratingly slow and elongated recovery that will require a combination of fiscal and monetary firepower to manage the aftermath of the pandemic.’
CNBC, Cramer: ‘I get worried’ that without more coronavirus stimulus stock market could ‘sputter out,’ Kevin Stankiewicz, 05/29/20: CNBC’s Jim Cramer said Friday that he’s concerned the stock market’s rally from its March lows may run out of steam unless Congress approves additional coronavirus relief measures…But Joe Brusuelas, chief economist at middle market business consultancy RSM US, told CNBC’s Jeff Cox on Friday that there’s a “growing and significant disconnect” between economic data in the country and the stock market’s valuation.” Also picked up in MSN Money.
Associated Press, White House punts economic update as election draws near, Andrew Taylor, Josh Boak and Aamer Madhani, 05/29/20: The White House has taken the unusual step of deciding not to release an updated economic forecast as planned this year, a fresh sign of the administration’s anxiety about how the coronavirus has ravaged the nation just months before the election…“It’s a sign that the White House does not anticipate a major recovery in employment and growth prior to the election and that it has essentially punted economic policy over to the Fed and the Congress,” said Joe Brusuelas, chief economist for the consultant RSM. Also picked up in The New York Times, ABC News and Fortune, among others.
Reuters, New wave of U.S. layoffs feared as coronavirus pain deepens, Lucia Mutikani, 05/28/20: Job cuts by U.S. state and local governments whose budgets have been crushed fighting the COVID-19 pandemic and more second-wave layoffs in the private sector likely contributed last week to a 10th straight week of more than 2 million Americans seeking unemployment benefits… “Now is a good time to think how many of those people who lost their jobs are going to get them back, my sense is 25% will not and that’s what gives us the double digit unemployment rate well into 2021,” said Joe Brusuelas, chief economist at RSM in New York. Also picked up in The New York Times, Fox Business and Yahoo! Finance, among others.
Benzinga, US GDP Contracts 5% In Q1 As Corporate, Consumer Spending Plunge: Coronavirus Triggers 'Rapid Changes In Demand,’ Elizabeth Balboa, 05/28/20: The U.S. GDP contracted 5% in the first quarter of 2020, the largest since the 2008 recession…“Now is a good time to think how many of those people who lost their jobs are going to get them back, my sense is 25% will not and that’s what gives us the double digit unemployment rate well into 2021,” Joe Brusuelas, chief economist at RSM, told Reuters. “The bankruptcies of small and medium enterprises will result in a much higher rate of permanent layoffs.” Also picked up in Yahoo! Finance and CFO.
TD Ameritrade, Joe Brusuelas Recaps Recent Jobless Claims Number, 05/22/20: RSM Chief Economist Joe Brusuelas joins TD Ameritrade’s “Morning Trade Live” to discuss the weekly jobless claims data.
The New York Times, A Wave of Small Business Closures Is on the Way. Can Washington Stop It?, Neil Irwin 05/21/20: One of the great threats to the post-pandemic economy is becoming clear: Vast numbers of small and midsize businesses will close permanently during the crisis, causing millions of jobs to be lost…“To be kind to both Republicans and Democrats who came up with this plan on the fly, the magnitude of the shock is so much larger than what anybody thought it was at the time,” said Joe Brusuelas, chief economist at RSM, an accounting firm that serves midsize companies. “It makes sense to revisit the program.” Also picked up in MSN Money.
Washington Post, The Finance 202: Trump's economic approval ratings defy his polling slide amid coronavirus pandemic, Tory Newmyer, 05/21/20: The good news for President Trump’s reelection prospects is voters still give him positive marks on his economic leadership. The bad news is just about everything else…From RSM chief economist Joe Brusuelas: There are 100 million or so Apple IPhones in the U.S which is not a bad sample. Here is a look at US Apple mobility trends (search directions for driving, walking & transit). It gives one a good sense about how the economic reopening is evolving.
Yahoo! Finance, “These programs aren’t holding back the economy, they’re actually supporting it”: RSM Chief Economist, 05/19/20: Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testify before the Senate Banking Committee on CARES Act progress. RSM Chief Economist Joe Brusuelas joins Yahoo Finance’s “On The Move” to weigh in.
Forbes, Negative Interest Rates Explained: How Could They Affect You?, Kelly Anne Smith, 05/18/20: The U.S. economy is slipping into what could be a severe recession, and the Federal Reserve is taking unprecedented measures to help it survive the consequences of the COVID-19 pandemic…Joe Brusuelas, chief economist at RSM, believes implementing negative interest rates wouldn’t be an easy task. Plus, he also doubts they would be the best way to help the economy now—although implementing them wouldn’t be an impossible undertaking for the Fed.
S&P Global, May retail market: Historic US sales drop in April; 9 companies go bankrupt, Tayyeba Irum and Chris Hudgins, 05/15/20: U.S. retail sales plunged by a record 16.4% in April from the prior month as the coronavirus pandemic kept consumers at home…"While April will most likely prove to be the nadir in U.S. retail sales, we are not expecting a meaningful near-term rebound in sales because of the significant dislocation in the American labor market and clearly diminished income horizons for the near future," Joseph Brusuelas, chief economist at RSM US LLP said.
Axios, Americans don't realize that coronavirus recovery may take months, Dion Rabouin, 05/13/20: Economic experts including Fed chair Jerome Powell, IMF chief economist Gita Gopinath and a multitude of top market analysts and economists have been saying for weeks that a quick economic recovery is a "fantasy" and likely at least a year away…"Consumer confidence is signaling a bit of cognitive dissonance right now," Joseph Brusuelas, chief economist at tax and consulting firm RSM, tells Axios. "People want to believe that their portfolios will recover in one calendar year."
Yahoo! Finance, The next big economic trend — disinflation: Morning Brief, Myles Udland, 05/13/20: A novel virus creates novel economic concerns. As the U.S. economy continues to reel from shutdowns related to the coronavirus pandemic, the oldest worry in the economics world has begun to rear its head — should we be worried about inflation...But RSM’s chief economist Joe Brusuelas said Tuesday that, “risks to the economy and household consumption are going to be skewed toward deflation for the foreseeable future.”
CNN Business, New threat to the economy: Americans are saving like it's the 1980s, Matt Egan, 05/12/20: Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear their jobs could disappear during the coronavirus pandemic…"The consumer that constitutes the beating heart of the real economy is preparing for a much longer slowdown than what policymakers are telling them," said Joe Brusuelas, chief economist at RSM, a consultancy.
CNN Business, This is the most expensive time to buy stocks in 20 years, Matt Egan, 05/12/20: The US stock market stands 4% higher today compared to a year ago, despite the death and destruction unleashed by the coronavirus pandemic…"There's been a disconnect between the stock market and the real economy for years. In the wake of the pandemic, it's become much more profound," said Joe Brusuelas, chief economist at RSM. Similar articles also featured in MSN Money and Seeking Alpha.
Wall Street Journal, Newsletter Special Report: Historic Job Losses, Jeffrey Sparshott, 05/08/20: The April unemployment rate rose to a record 14.7% and payrolls dropped by an unprecedented 20.5 million as the coronavirus pandemic hit the economy…"What we know is that this report almost certainly understates the tragedy has befallen the American labor force." —Joseph Brusuelas, RSM US.
Marketplace, The unemployment rate spiked to 14.7% in April. It doesn’t fully capture COVID-19 job losses., Mitchell Hartman, 05/08/20: The Labor Department’s monthly employment report for April shows the jobless rate has soared to 14.7%, the highest level since the Great Depression…Joseph Brusuelas, chief economist at RSM, a consultancy, has been tracking jobless claims. “Many of the initial claims were classified as furloughed, but are becoming permanently unemployed,” he said.
CNN Business, A historically grim US jobs report should be a reality check for investors, Julia Horowitz, 05/08/10: The economic devastation wrought by the coronavirus pandemic is about to come into plain view…Joseph Brusuelas, chief economist at RSM, said he plans to scrutinize the data on hours worked. Analysts may need to justify the current valuation of the S&P 500, which has rallied nearly 29% from its low point on March 23, should we see hours notably decreasing, with a good portion of those still employed at "risk of falling back to working 30 hours per week," he said.
Benzinga, What To Make Of The Historically Bad Jobs Report: 'Great Depression Levels Of Stress', Elizabeth Balboa, 05/08/20: April brought the highest unemployment rate — and monthly rate increase — since the Great Depression…“What we know is that this report almost certainly understates the tragedy has befallen the American labor force,” RSM Chief Economist Joseph Brusuelas said in a statement, noting that the unemployment rate would have been nearly 5 percentage points higher if the full number of absent workers had been included in the count. Also picked up in Yahoo! Finance.
Benzinga, April 2020 Job Loss Is The Worst In US History; Unemployment Rate Hits 14.7%, Elizabeth Balboa, 05/08/20: In just two months, the coronavirus outbreak undid all the economic progress made since the 2008 financial crisis — including the lowest unemployment rate in 50 years…“Given the well-known problems in filing claims around the country, those workers classified as furloughed will face the permanent loss of a job, and the unique set of conditions around shelter-in-place orders and self-distancing will tend to produce an undercount of the unemployed,” Joseph Brusuelas, chief economist at RSM, said in a statement. Also picked up in Yahoo! Finance.
American Enterprise Institute, The April jobs report was nightmare fuel. Well, mostly., 05/08/20, James Pethokoukis: So an absolutely hellacious, horrific jobs report. That we expected such devastating numbers helps not at all. Non-farm payrolls plunged by 20.5 million in April, while the official unemployment rate rocketed to 14.7 percent…Joe Brusuelas of RSM: “The abyss that policymakers are staring into is vast and dark.”
TD Ameritrade, Calvin Schnure And Joe Brusuelas On The Unemployment Situation, 05/08/20: RSM Chief Economist Joe Brusuelas joins TD Ameritrade Network’s “The Watch List” to discuss the April employment report.
PYMNTS, Saving Main Street: Advocacy Groups Propose New Government Relief Programs, 05/08/20: The crisis is hardly over, but post-pandemic reality is setting in for Main Street retail… Writing in Barrons, RSM chief economist Joseph Brusuelas is recommending a Main Street lending facility that would include a $250 billion Congressional backstop combined with $1.25 billion in liquidity guarantees by the Federal Reserve. Government agencies would lend at 1 percent, branding the program “One for America.”
Associated Press, Loan program is short-term fix, not cure-all, for business, Joyce M. Rosenberg, 05/07/20: The Trump administration has dispensed about $530 billion to millions of small businesses to cushion them from the sharp downturn induced by the coronavirus…“(Unemployment) claims and bankruptcies will give us a sense of whether the aid got there quick enough to prevent a catastrophe,” says Joe Brusuelas, chief economist with the accounting and advisory firm RSM US. Also picked up in The New York Times, U.S. News & World Report, Business Insider and ABC News, among others.
CNN Business, The economic recovery may be shaped like the Nike swoosh, Paul La Monica, 05/06/20: The Covid-19 pandemic has likely sent the United States into a recession. America's economy contracted in the first quarter and the pain is expected to be even worse for the second quarter…"Our base case of a recovery that looks like a Nike swoosh depends upon robust and sustained fiscal and monetary policies put forward by the federal government and Congress," said Joseph Brusuelas, chief economist with RSM US. Also picked up in MSN Money.
Middle Market Growth, Private Markets Respond to Coronavirus Disruption, Benjamin Glick, 05/06/20: Michael Butler had a front-row seat to the coronavirus outbreak. As chairman and CEO of Seattle-based investment bank Cascadia Capital, he witnessed the West Coast city grind to a halt as those testing positive for the coronavirus surpassed 1,000 in Washington on March 17…One alternative trajectory, described by RSM US Chief Economist Joseph Brusuelas in an interview with CNBC on April 13, is that of a “Nike swoosh,” with a deep downturn and an elongated recovery. But as the situation evolves, that prediction could change, too.
CNN Business, Welcome to the most expensive US stock market in two decades, Matt Egan, 05/01/20: The coronavirus pandemic has exposed a gaping disconnect between unprecedented economic pain on Main Street and extreme optimism on Wall Street…"The worst of the unemployment crisis still lies ahead," Joe Brusuelas, chief economist at RSM, wrote in a report. "The distance between promise and reality for the working class of the economy has never been starker or more painful."
CNBC, Florida has overtaken California as the US jobless claims capital, Thomas Franck and John Schoen, 04/30/20: Florida overtook California on Thursday as the U.S. state with the most weekly unemployment claims as Tallahassee began to process in earnest its sizable backlog of filings…“A look at unemployment claims around the country by state strongly implies that there will be a surge in unemployment claims in two states: Texas and Florida,” Joe Brusuelas, chief economist at RSM US, said in a note. Also picked up in MSN.
CNN Business, 30 million Americans have filed initial unemployment claims since mid-March, Anneken Tappe, 04/30/20: Millions more Americans filed for unemployment benefits last week, as the coronavirus crisis continued to weigh on the US economy. First-time claims for unemployment benefits totaled 3.8 million in the week ending April 25, after factoring in seasonal adjustments, the US Department of Labor said…One big question now is whether initial claims will peak above or below 40 million in this crisis, said Joe Brusuelas, chief economist at RSM US.
Seeking Alpha, American Badlands: Unemployment shatters Great Depression record, Stephen Alpher, 04/30/20: "Lights out tonight, trouble in the heartland" ... 30.2M Americans filing for first-time unemployment over last six weeks implies a real-time unemployment rate of 23.8%, writes RSM's Joe Brusuelas…Brusuelas expects Q2 GDP growth to contract 40%, and the unemployment crisis to get even worse. He notes the current extra $600 per week from D.C. runs out in July. It's pretty likely another similar multi-trillion dollar round will be necessary.
Axios, Fed expands coronavirus business loans, paving the way for oil relief, Orion Rummler, 04/30/20: Democratic and Republican lawmakers have lined up on opposing sides of the Federal Reserve's decision to expand its $600 billion Main Street Lending Program and give loans to a wider range of businesses suffering from the economic effects of the coronavirus…"This will change the perception of the government’s framework and approach to dealing with the crisis," Joe Brusuelas, chief economist at tax and consulting firm RSM, tells Axios. "Over time the Main Street program will overshadow the SBA and PPP, which have been an unmitigated disaster in terms of public optics."
Bloomberg Businessweek, When the Stock Market Goes Mad, Look for Real Value, Peter Coy, 04/30/20: This may be the least informative earnings season in history. Companies’ first-quarter financial results are scarcely relevant because they cover a period that mostly predated the pandemic…“My mantra is: depression-like shock, no depression,” says Joseph Brusuelas, chief economist at RSM Global, an audit, tax, and consulting firm.
Yahoo! Finance, The coronavirus recession is a choice: Morning Brief, Myles Udland, 04/30/20: The U.S. economy is in recession. Take a look outside your window and this reality is plain to see…“As long as policymakers do not lose their nerves, or make a policy mistake such as not providing aid to reeling states and municipalities, there is no reason why the economy should suffer from a deep, extended downturn that meets the definition of a depression,” said RSM chief economist Joe Brusuelas in a note published Wednesday. “It is a choice, not fate.”
Washington Post, The Finance 202: Goldman Sachs is launching a new lobbying group for small businesses, Tory Newmyer, 04/30/20: Main Street businesses are getting a new lobbying voice in Washington – underwritten by a Wall Street giant…From RSM chief economist Joe Brusuelas: “US Q1’20: I like this data viz because it provides just a glimpse of the damage wrought by the Pandemic during the final weeks of the quarter by sector.”
Inc., Changes to Fed Loan Program Give Small Biz a New Shot at Funding, Diana Ransom, 04/30/20: Small-business owners frustrated by getting cut out of the stimulus program will soon get another chance at emergency funding…Of course, unlike the PPP, Main Street loans are not forgivable. So they really aren't ideal for businesses that were teetering on the edge before the crisis, says Joe Brusuelas, chief economist at RSM, a consultancy focused on middle-market businesses in Chicago. "Those small firms need grants, not loans," he says.
Wall Street Journal, Stocks Rise as Fed Pledges Lasting Support for the Economy, Joe Wallace, Paul Vigna and Chong Koh Ping, 04/29/20: U.S. stocks rose Wednesday on hopes of progress for a coronavirus treatment and as Federal Reserve Chairman Jerome Powell said the central bank is in no hurry to end its economic stimulus…Joseph Brusuelas, chief economist at consulting firm RSM, noted that the Fed didn’t “point to an exit or end point on its accommodative policies.” “The Fed is prepared to engage in an open-ended period of policy innovation to support the years it’s going to take the economy to dig out,” he said.
Wall Street Journal, Newsletter Special Edition: The Expansion Is Over, Jeffrey Sparshott, 04/29/20: The longest U.S. economic expansion on record is over. GDP posted its sharpest drop since 2008 as governments and consumers responded to the new coronavirus…"This data, and those on the way, should finally lay to rest notions of a V-shaped recovery." —Joseph Brusuelas, RSM US.
Reuters, Coronavirus likely hammered U.S. economy in first quarter, Lucia Mutikani, 04/29/20: The U.S. economy likely contracted in the first quarter at its sharpest pace since the Great Recession as stringent measures to slow the spread of the novel coronavirus almost shut down the country, ending the longest expansion in the nation’s history…“You are going to get close to 40% contraction in the second quarter,” said Joe Brusuelas, chief economist at RSM in New York. “It’s important that when we talk of reopening, we are not talking about it in a binary fashion. It’s not going from zero to one or flipping the switch. Firms are opening, but still heavily constrained by public health policy.” Also picked up in Business Insider, The New York Times and Yahoo! News, among others.
Washington Post, Fed chair warns of ‘heartbreaking’ scenario as U.S. economy suffers worst first quarter since Great Recession, Heather Long, 04/29/20: The U.S. economy suffered its sharpest decline since the Great Recession — a 4.8 percent drop — from January through March, and the head of the Federal Reserve warned the second quarter would be even uglier as many Americans continued to stay home to stem the spread of the coronavirus…This is a “Depression-like shock,” said Joseph Brusuelas, chief economist at audit firm RSM. “Policymakers should be prepared to support other rounds of aid and stimulus for an economy that is going to be reeling for some time.”
Politico, Why the unemployment rate might not skyrocket, Ben White and Aubree Eliza Weaver, 04/24/20: We now have 26 million jobs vaporized by the Covid-19 virus and forced economic lock-downs…RSM’s Joe Brusuelas: “Roughly one in seven of the 162.9 million workers in the U.S. labor force is now out of work. The magnitude of the shock to the labor market is so large that it is difficult not to begin thinking about the wage picture for American workers going forward.”
Business Insider, Here's what 5 economists are saying about unemployment after 26 million Americans filed jobless claims in just 5 weeks, Carmen Reinicke, 04/23/20: In the last five weeks, 26 million Americans have filed for unemployment claims as layoffs persist amid the coronavirus pandemic… "American labor dynamics deteriorated further for the week," Joe Brusuelas, chief economist at RSM, wrote in a Thursday note. In addition, the losses this week imply that the "near real-time unemployment rate has increased to 21.1% at a minimum," he said. Also picked up in Markets Insider.
Reuters, Record U.S. jobless claims wipe out post-Great Recession employment gains, Lucia Mutikani, 04/23/20: A record 26 million Americans likely sought unemployment benefits over the last five weeks, confirming that all the jobs created during the longest employment boom in U.S. history were wiped out in about a month as the novel coronavirus savages the economy…“It wipes out all the job gains during the long expansion,” said Joseph Brusuelas, chief economist at RSM in New York. “Once the economy begins to reopen initial claims will slow, but we have to be honest, not everyone is going to get their jobs back.” Also picked up in Fox Business and Nasdaq, among others.
The Hill, 4.4 million more people filed for weekly unemployment claims, Sylvan Lane, 04/23/20: More than 4.4 million Americans filed their first claims for unemployment insurance last week as the U.S. economy bleeds jobs under a lockdown imposed to slow the coronavirus pandemic, the Labor Department reported Thursday…"The near real-time unemployment rate has increased to 21.1% at a minimum," wrote RSM chief economist Joe Brusuelas in a Thursday research note.
Benzinga, Another 4.42M Weekly Jobless Claims Made As Economy Reels From Coronavirus, Tanzeel Akhtar, 04/23/20: New U.S. jobless claims for the week ending April 17 totaled a whopping 4.427 million, the Bureau of Labor Statistics said Thursday…The data implies a real-time unemployment rate of 21.1% at the minimum, RSM US LLP Chief Economist Joe Brusuelas said in a note. "The magnitude of the shock to the labor market is so large that is difficult to not begin thinking about the wage picture for American workers going forward," he said.
S&P Global, Fed pressured to expand access to Main Street loan program ahead of launch, Polo Racha, 04/23/20: The Federal Reserve may have to lower the price for businesses to access its Main Street Lending Program and tweak other details so that more firms can tap into the $600 billion emergency loan pool…The Fed may also need to lower the interest rate on those loans to ensure more businesses can participate, said Joe Brusuelas, chief economist at the accounting firm RSM US LLP, which focuses on middle-market firms.
CNBC, A ‘U,’ a ‘V’ or maybe a Nike swoosh? Economists try to predict what a recovery will look like, Jeff Cox, 04/22/20: As some states start to relax social distancing measures and some tentative signs point to coronavirus cases being on the decline, there’s still scant evidence of a turn in the U.S. economy…“We’re approaching the nadir in terms of the worst being passed. That likely will happen in May, and then we’ll slowly begin climbing out of this,” said Joseph Brusuelas, chief economist at RSM. “We’re not going to have a depression. That’s a good start for what the recovery looks like.”
MarketWatch, Why the U.S. economy’s recovery from the coronavirus is likely to be long and painful, Jeffry Bartash, 04/22/20: Some U.S. states are already trying to reopen for business and President Trump has repeatedly predicted economic growth will take off like a “rocket ship” once the coronavirus pandemic ends, but economists increasingly believe a recovery will be a long and uneven one…Congress has rushed to pump more than $650 billion into a special relief fund for small businesses, but it’s unclear if it will be enough. Joe Brusuelas, chief economist of RSM, estimates the flood of demand for small-business loans could top $1 trillion “unless the crisis eases significantly.” Also picked up in Morningstar.
Canadian Accountant, Canadian post-pandemic economy to be tepid, says accounting firm RSM Canada, Colin Ellis, 04/21/20: Canada is on the verge of a financial crisis that could rival the global financial crisis of 2007-09, according to a new report released today by accounting and professional services firm RSM Canada…“Canada's financial system has experienced a series of devastating blows in the wake of the global equity market collapse that began in the last weeks of February, and which has us on the verge of a financial crisis that could rival the global financial crisis of 2008," says Joe Brusuelas, chief economist with RSM US LLP. Similar articles also featured in Investment Executive, Consulting.ca and Wealth Professional, among others.
Cheddar, 'Testing, Testing, Testing' Required for Reopening, says Economist, 04/20/20: Joe Brusuelas, Chief Economist at RSM US LLP, the fifth-largest accounting firm in the country, joined Cheddar to discuss steps to reopening the American economy.
The New York Times, A Prescription for Reviving the Economy, 04/17/20: In less than two weeks, the U.S. government’s $349 billion small-business lending program has run out of money. Congress is in talks about adding more funds, but an agreement doesn’t seem imminent…Joseph Brusuelas, the chief economist of RSM, says that the program will need $1 trillion to meet demand.
Bankrate, When will the U.S. economy get back on track following coronavirus shock? Watch for these 5 signs, Sarah Foster, 04/17/20: Not all recessions are created equally. Neither are the recoveries — and the biggest financial fear is that the current economic slump will last long after the coronavirus is contained…“What I’m seeing here is a depression-like shock without a depression,” says Joe Brusuelas, chief economist at RSM. “We’re not going to flip a switch and the economy is going to open back up at once. It will take some time to ascertain where the longer-lasting damage is.”
Washington Post, U.S. now has 22 million unemployed, wiping out a decade of job gains, Heather Long, 04/16/20: More than 22 million Americans have filed for unemployment aid since President Trump declared a national emergency four weeks ago, a staggering loss of jobs that has wiped out a decade of employment gains and pushed families to line up at food banks as they await government help… “Once one adds in those not captured by the data, we are almost certainly facing a 20 percent unemployment rate now,” said Joseph Brusuelas, chief economist at audit firm RSM. “At this point in the pandemic, roughly one in every seven individuals in the workforce is unemployed.”
Benzinga, Experts React To Weekly Jobs Number: 'Unemployment Rate Will Break Through 20%', Wayne Duggan, 04/16/20: The SPDR S&P 500 ETF Trust (NYSE: SPY) traded lower by 0.3% on Thursday after the Labor Department reported weekly jobless claims of 5.245 million, bringing the running total for the coronavirus downturn up to 22 million…Joseph Brusuelas, chief economist at RSM US LLP, said the U.S. unemployment rate will likely hit 20% before all is said and done. “The U.S. unemployment rate will break through 20% this spring and likely test the 1933 Depression-era high of 24.9% this year,” Brusuelas said. Also picked up in Yahoo! Finance.
Seeking Alpha, Jobless claims imply 18% unemployment rate, Liz Kiesche, 04/16/20: The social distancing measures used to control COVID-19's spread continues to take its toll on unemployment as this week's initial jobless claims bring the total over the past four weeks to 22M. That points to a real-time unemployment rate of 18.1%, according to RSM US Chief Economist Joseph Brusuelas. "Once one adds in those not captured by the data, we are almost certainly facing a 20% unemployment rate now," he writes. Similar article also featured in GoldPrice.
S&P Global, April retail market: March US sales post record decline; 4 retailers go bankrupt, Tayyeba Irum and Chris Hudgins, 04/15/20: U.S. retail sales suffered a historic decline in March and experts expect more dark days ahead as the coronavirus pandemic keeps American consumers at home…"The combination of soaring unemployment and shelter-in-place policies across the economy sent U.S. retail sales down," Joseph Brusuelas, chief economist at RSM US LLP, said April 15. Similar article also featured in Morningstar.
Modern Healthcare, Feds' business loans for hospitals freeze top earners' pay, Rachel Cohrs, 04/13/20: Hospitals and other providers will likely be eligible for new loans for mid-size businesses hurt by COVID-19 that would require borrowers to limit pay for highly-compensated employees and executives, according to the Federal Reserve…"The Fed is clearly not out of ammunition, nor is it done exhausting its potential liquidity commitments based on the congressional backstop inside the CARES Act," RSM US chief economist Joseph Brusuelas wrote in an analysis of the new loan program.
CNBC, Brusuelas: Key will be getting a virus treatment to the public that can help mitigate the effects of a start-and-stop economy, 04/13/20: RSM chief economist Joe Brusuelas discusses the major impact the coronavirus pandemic has already had on the U.S. labor market, and what it will take to offset those job declines and ensure companies can stay in business.
Business Insider, More than 10% of American workers have filed for unemployment in just 3 weeks as coronavirus puts the economy in a deep freeze, Carmen Reinicke, 04/10/20: Less than one month of data shows just how deeply the coronavirus pandemic has rocked the US labor market – and many economists expect that pain will continue…“While we think that data for the period ending March 28 represents a peak in first-time claims during the current recession, large numbers of people will continue to report job losses for the next several weeks, which will send the overall unemployment level well above 20%,” wrote RSM chief economist Joe Brusuelas in a note.
Los Angeles Times, Mounting jobless claims point to a 15% unemployment rate for April, Don Lee, 04/09/20: In the fastest surge of layoffs and economic decline in U.S. history, nearly 17 million Americans have applied for unemployment benefits in the last three weeks, the government reported Thursday…“The major takeaway from the labor market data is that Congress and the administration are going to have to provide more aid to a beleaguered domestic labor force that will face a period of mass unemployment,” said Joseph Brusuelas, chief economist at the accounting firm RSM US.
Associated Press, Record 16.8 million have sought US jobless aid since virus, Christopher Rugaber, 04/09/20: With a startling 6.6 million people seeking unemployment benefits last week, the United States has reached a grim landmark: More than one in 10 workers have lost their jobs in just the past three weeks to the coronavirus outbreak…“The carnage in the American labor market continued unabated,” said Joseph Brusuelas, chief economist for RSM, a tax advisory firm. Also picked up in ABC News, Yahoo! Finance and The New York Times, among others.
Wall Street Journal, New U.S. Unemployment Claims Totaled 6.6 Million Last Week, Sarah Chaney and David Harrison, 04/09/20: The number of Americans seeking unemployment benefits continued to surge at record levels, bringing the total number of applications to nearly 17 million since the coronavirus pandemic shut down swaths of the U.S. economy…“We clearly are still processing individuals who are having a hard time getting claims through at the state level in addition to the large numbers of layoffs that corporate America is now doing,” said Joseph Brusuelas, chief economist for RSM US LLP. “You should still expect to see staggeringly large numbers of individuals file for first-time claims.” Also picked up in Morningstar.
Fox Business, Coronavirus unemployment could hit post-depression record, economists say, Megan Henney, 04/10/20: Economists expect unemployment in the U.S. to surge to a post-Great Depression high as the coronavirus pandemic forces American life to come to a grinding halt…“The internal dynamics inside the report are a sober, clear-eyed precursor to what is going to be the largest bloodletting in the labor market since the 1929 to 1933 period of the Great Depression,” Joe Brusuelas, chief economist at RSM, said after the release of the March jobs report last Friday. Also picked up in Yahoo! Finance.
Reuters, Fed rolls out $2.3 trillion to backstop 'Main Street,' local governments, Howard Schneider, 04/09/20: The U.S. Federal Reserve on Thursday announced a broad, $2.3 trillion effort to bolster local governments and small and mid-sized businesses, the latest in an expanding suite of programs meant to keep the U.S. economy intact as the country battles the coronavirus pandemic…“The Fed made history today” by throwing its vault open to small and medium-sized businesses that are at the core of the U.S. economy, said Joe Brusuelas, an economist who focuses on mid-sized companies with consulting firm RSM. Also picked up in Business Insider, The New York Times and Yahoo! Finance, among others.
Inc., What to Know About the Fed's New $2.3 Trillion Loan Programs, Diana Ransom, 04/09/20: While Congress may be in talks to pass another stimulus plan, its impact on businesses would be limited without a parallel effort from the Federal Reserve, announced Thursday…After news broke recently that the Federal Reserve was developing a stimulus package, Joe Brusuelas, chief economist at RSM, a consultancy focused on middle-market businesses in Chicago, said he expects the loans would come with "bargain basement" interest rates of 2 to 2.5 percent. He anticipates that the program eventually will result in as much as $1 trillion in new loans for midsize companies.
CNN Business, The Fed just unleashed another $2.3 trillion to support the economy, Paul La Monica, 04/09/20: The Federal Reserve is continuing its extraordinary efforts to prop up the US economy in the wake of the coronavirus pandemic…"The liquidity commitment put forward by the Fed strongly suggests that this is the latest in a series of policy steps to address the economic fallout of the pandemic and is not the final word," said Joseph Brusuelas, chief economist with RSM US, in a report. "The Fed is clearly not out of ammunition, nor is it done exhausting its potential liquidity commitments," Brusuelas added.
Reuters, Coming next from the Fed: How much for Main Street?, Howard Schneider, 04/08/20: The U.S. Federal Reserve responded fast to the coronavirus crisis with open-ended programs to keep financial markets running and ensure major companies could raise cash as they usually do through large capital markets…Joseph Brusuelas, an economist with business consulting firm RSM who has followed the Fed’s crisis response closely, expects the Fed to receive an $85 billion capital contribution from Treasury and turn that into $1 trillion of lending power for businesses. Also picked up in The New York Times, U.S. News & World Report and Yahoo! Finance, among others.
Associated Press, Federal Reserve to boost small business lending efforts, Christopher Rugaber,04/06/20: The Federal Reserve said Monday it will support the government’s $349 billion small business lending program, which had a rocky start Friday…Joseph Brusuelas, chief economist at RSM, an advisory firm that works with medium-sized companies, said the Fed’s move is intended to encourage more banks to participate because many are reluctant to lend to small companies. “This should help ... reverse risk aversion among potential lenders to provide bridge financing for small firms that otherwise would likely not survive the first phase of the crisis,” Brusuelas said. Also picked up in The New York Times, ABC News and Yahoo! Finance, among others.
Fortune, Are we headed for a depression? Economists weigh in, Erik Sherman, 04/04/20: Another day, another surprise for the economic forecasters: a record 6.6 million people filed for unemployment last week. Oxford Economics in an email called it an "incomprehensible jump" that may be "the new normal." Joe Brusuelas, chief economist for middle market audit and advisory firm RSM, wrote that such "tectonic shifts" imply a "real-time unemployment rate of 10.1% at a minimum."
CBS Moneywatch, Coronavirus slammed the job market in March, Irina Ivanova and Alain Sherter, 04/03/20: The U.S. government's latest employment report shows that hiring plunged in March as the coronavirus brought a sudden stop to a record 113 straight months of job growth — and that, unfortunately, is the good news…The March report is "a sober, clear-eyed precursor to what is going to be the largest bloodletting in the labor market since the 1929-1933 period of the Great Depression," RSM Chief Economist Joe Brusuelas said in a note.
The Hill, Economy sheds 701K jobs in March as coronavirus devastates businesses, Sylvan Lane, 04/03/20: The U.S. lost 701,000 jobs in March as the growing coronavirus pandemic devastated the American economy and ended more than a decade of uninterrupted employment growth, according to data released Friday by the Labor Department…Joe Brusuelas, chief economist at audit and tax firm RSM, said Thursday that the historic rise in jobless claims means the current unemployment rate is likely at least 10.1 percent.
Reuters, Instant View: Coronavirus slams U.S. jobs growth in March, 04/03/20: The U.S. economy abruptly ended a historic 113 straight months of employment growth in March, as stringent measures to control the novel coronavirus pandemic shuttered businesses and factories, all but confirming a recession is underway…Joe Brusuelas, Chief Economist, RSM, in Austin, Texas: “The March jobs report foreshadows the earthquake and aftershocks that are rolling through the U.S. labor market. Policymakers and investors should expect several more months of such job losses. What we are watching in real time is the greatest bloodletting in the American labor market since the Great Depression.” Similar articles also featured in Reuters, The New York Times, Yahoo! Finance and Seeking Alpha, among others.
Reuters, New York mayor begs for more U.S. aid as jobs data confirms economic carnage, Maria Caspani and Lucia Mutikani, 04/03/20: New York Mayor Bill de Blasio pleaded with the U.S. government for more help in expectation of a surge in COVID-19 cases next week, as new statistics emerged confirming that hundreds of thousands of people across the country have lost their jobs…“What we are watching in real time is the greatest bloodletting in the American labor market since the Great Depression,” said Joe Brusuelas, chief economist at RSM in Austin, Texas. Similar articles also featured in Reuters, The New York Times and Yahoo! Finance, among others.
Business Insider, 'Grim, but only the start': Here's what 5 economists have to say about the dismal March jobs report, Carmen Reinicke, 04/03/20: On Friday, the March jobs report showed that the US economy lost more jobs than economists were expecting, a worrying sign about the damage to come amid the coronavirus pandemic…"Following 113 straight months of job gains, the U.S. economy shed 701,000 jobs in March, providing a glimpse of things to come," Joe Brusuelas, RSM's chief economist, wrote in a Friday note.
Yahoo! Finance, 'We just partially captured what’s going to happen -- this was just a precursor': Economist on unemployment numbers, 04/03/20: RSM Chief Economist Joe Brusuelas joins Yahoo Finance’s “On The Move” to address the massive number of job cuts in March.
TD Ameritrade, Calvin Schnure And Joe Brusuelas Discuss The March Employment Situation, 04/03/20: RSM Chief Economist Joe Brusuelas joins TD Ameritrade Network’s “The Watch List” to discuss the March employment report.
Inc., More Help Is on the Way for Middle Market Companies, Diana Ransom, 04/03/20: As businesses race to apply for government-backed Covid-19-relief loans as part of the $2 trillion stimulus package, many business owners--those 200,000 or so who run midsize companies--are eagerly waiting for details on the lending program in the works specifically for them…"This will be probably the most popular program of all the crisis programs that are being put forward because it does involve Main Street," says Joe Brusuelas, chief economist at RSM, a consultancy focused on middle-market businesses in Chicago.
Washington Post, The past two weeks wiped out all the economy’s job gains since the 2016 election, Heather Long and Abha Bhattarai, 04/02/20: The coronavirus recession is shaping up to be the biggest blow to the U.S. economy since the Great Recession, and fears are rising that it could take years to reverse the damage, especially for millions of Americans who are losing their jobs and businesses…As the pandemic has spread to so many sectors, nearly one out of five small- and medium-sized businesses are at risk of bankruptcy, said Joseph Brusuelas, chief economist at audit firm RSM, which specializes in the midsized market. As businesses close, they won’t rehire workers. “Firms with less than 100 people are the ones that really need the help,” he said.
CNN Business, 6.6 million Americans filed for unemployment benefits last week — a record high as coronavirus takes its toll, Anneken Tappe, 04/02/20: The last three weeks have marked one of the most devastating periods in history for the American job market, as first-time claims for unemployment benefits have surged more than 3,000% since early March…This "tectonic shift" in the US labor market "implied a real-time unemployment rate of 10.1% at a minimum," said Joseph Brusuelas, chief economist at RSM. Similar article also featured in CFO Magazine.
Seeking Alpha, Two week jobless increase worse than first 6 months of Great Recession, Stephen Alpher, 04/02/20: Adding it all up, Joe Brusuelas says the 10M initial jobless claims over the past two weeks should send the unemployment rate over 10%. That two-week increase is a bigger number than the first six months of the Great Recession one decade ago. Policymakers, he says, should brace for total claims to soon approach 15M. Forget the V-shaped recovery, says Brusuelas, a larger fiscal aid package will be necessary, and recovery will take years.
Yahoo! Finance, More than 66 million U.S. jobs are at 'high risk' of layoffs amid coronavirus, St. Louis Fed finds, Aarthi Swaminathan, 04/01/20: As the coronavirus, or COVID-19, wreaks havoc on the U.S. economy, more than 66 million jobs across sales, production, and food preparation services are at “high risk” of layoffs, according to a St. Louis Federal Reserve economist…“Corporate America is engaged in giant experiment regarding what tasks can be done remotely,” RSM Chief Economist Joe Brusuelas told Yahoo Finance. “Firms are learning what can be done and who can do it. Once this is sorted out, then firms can reduce their expensive physical commercial real estate footprint.”
USA Today, How quickly can the economy bounce back from the coronavirus?, Paul Davidson, 03/31/20: Can the economy really come roaring back from the coronavirus recession as soon as this summer, as President Donald Trump has promised?...Some of the after-effects could lead to lasting changes that further crimp the economy over the longer term. Many companies could continue the work-at-home set-ups they’ve adopted during the outbreak, hammering office building construction, says Joseph Brusuelas, chief economist of consulting firm RSM.
Cato Institute, When the Fed Tried to Save Main Street, George Selgin, 03/30/20: Any day now, the Federal Reserve will start making loans to small and medium-sized businesses, breaking new ground with its Section 13(3) lending authority…Thanks to Joseph Brusuelas, chief economist at RSM US (a "middle market" tax and audit consulting firm), we know a little more than that about the Fed's plan. Using comments from Fed officials (particularly Dallas Fed President Robert Kaplan and Atlanta Fed President Raphael Bostic), Brusuelas has come up with a compelling composite sketch of the Fed's planned arrangement, including its official name: the "Temporary Corporate and Small Business Liquidity Facility," or TCSLF.
Wall Street Journal, March Jobs Report Unlikely to Show Full Impact of the Coronavirus Crisis, Eric Morath and Paul Kiernan, 03/29/20: The March employment report will show a hit to the U.S. job market due to the novel coronavirus pandemic, but it is unlikely to show the depth of the crash because the data reflect the month’s first weeks…Friday’s report is “not going to really capture the significant damage out there that occurred,” said Joseph Brusuelas, chief economist at RSM US LLP. “Investors and policy makers should just throw it out. It’s just a remembrance of things past.”
Washington Post, The Finance 202: Cash-strapped Americans will face excruciating wait for coronavirus relief money, Tory Newmyer, 03/27/20: The most financially vulnerable Americans can’t rest easy even as the $2 trillion coronavirus economic rescue package is expected to pass. The wait to collect their relief money threatens to outlast their meager savings…The pain will be concentrated in large metro areas, which are likely to see a surge in their homeless populations, says RSM chief economist Joe Brusuelas. “The people who live on the edge of society are most at risk of becoming homeless if they aren’t on the receiving end of assistance for four months,” he says.
MarketWatch, Here’s how the Fed is funneling $4 trillion of funds to the real economy, Sunny Oh, 03/27/20: Small and medium businesses are set to become the next target of the Federal Reserve’s measures to open up the flow of credit throughout an economy that has threatened to freeze up over the coronavirus pandemic which has shutdown businesses across the country…“This is going to save Main Street,” said Joseph Brusuelas, chief economist at consultancy RSM.
Washington Post, It was the worst week for the economy in decades. The pain is just beginning., Heather Long, 03/26/20: The record 3.3 million jobless claims reported Thursday mark the beginning of an economic crisis facing American workers and businesses — a slump, experts say, that will only end when the coronavirus pandemic is contained…“The smaller the firm, the more damage this is going to cause,” said Joseph Brusuelas, chief economist at RSM, an audit firm that specializes in midsized companies. “What we’re hearing from smaller customers is for some of them it is too late.”
Politico, Welcome to the horror show, Ben White, 03/26/20: This morning at 8:30 a.m. we get the first real picture of the carnage via weekly jobless claims. The record is about 600K. Estimates for today’s number range from 1.5 million to 7 million…RSM’s Joe Brusuelas: “Essentially, for each increase of 1.5 million in first time claims it equals a 1% increase in the unemployment rate. Thus, the Bloomberg consensus at this time implies a 1.5 million increase in claims, which if true, indicates an increase in the unemployment rate from 3.5% to 4.5% … in the April employment report.” Similar articles also featured in Seeking Alpha and BBC.
Christian Science Monitor, As jobless numbers spike, a question rises: When can economy reopen?, Laurent Belsie and Henry Gass, 03/26/20: Some Americans are beginning to chafe under the coronavirus restrictions that authorities have put into place – not least of them President Donald Trump, who this week suggested lifting restrictions at least partially by Easter on April 12 to start revving up the economy…“We’re not anywhere near a flattening of the curve” of infection, says Joe Brusuelas, chief economist of RSM US LLP, part of a global network of independent audit, tax, and consulting firms. “Should we move prematurely, it could risk the general spread of the disease that would require subsequent shutdowns.”
Politico, Trump's dangerous dance with Wall Street, Ben White and Aubree Eliza Weaver, 03/25/20: CNBC reported that President Donald Trump and Vice President Mike Pence held a conference call on Tuesday with big Wall Street investors to discuss re-starting the economy during the coronavirus crisis…RSM’s Joe Brusuelas: “Based on our economic analysis, the U.S. is better off taking a one-time hit to economic growth, as efforts to terminate the virus continue, rather than run the risk of multiple economic shutdowns.”
Wall Street Journal, Coronavirus Triggers Record Drops in U.S., European Business Activity, Harriet Torry, Paul Hannon and Megumi Fujikawa, 03/24/20: The U.S. and Europe saw record declines in business activity in March, as economic activity slowed around the world due to measures aimed at containing the new coronavirus…The March PMI numbers are “the foreshadowing of a much deeper and broader decline in manufacturing and service activity across the globe and in the U.S.,” said Joe Brusuelas, chief economist at RSM US LLP. The scope of the economic hit “really is going to depend on the evolution of efforts to contain the disease,” he added. Also picked up in Yahoo! News, Market Screener and Morningstar, among others.
Reuters, Coronavirus pandemic battering global economy: surveys, Leigh Thomas and Lucia Mutikani, 03/24/20: Business activity collapsed from Australia, Japan and Western Europe to the United States at a record pace in March as measures to contain the coronavirus pandemic hammer the world economy, cementing economists’ views of a deep global recession…“Sending the public back to work at this time would be premature,” said Joe Brusuelas, chief economist at RSM in New York. “The U.S. is better off taking a one-time hit to economic growth, as efforts to terminate the virus continue, rather than run the risk of multiple economic shutdowns.” Also picked up in Yahoo! Finance and The New York Times, among others.
Associated Press, Fed makes strongest bid yet to protect firms and governments, Christopher Rugaber, 03/24/20: The Federal Reserve is unleashing its boldest effort yet to protect the U.S. economy from the coronavirus by helping companies and governments pay their bills and survive a devastating crisis…Joe Brusuelas, chief economist at RSM, a tax and advisory firm, said that if Congress can pass the legislation and have it signed into law by Tuesday, banks could start making loans to small and medium-sized businesses, with the Fed’s support, by Friday. Also picked up in ABC News, among others.
MarketWatch, Fed is now effectively the ‘lender of last resort’ to Main Street not just Wall Street, Greg Robb, 03/23/20: During the 2008 financial crisis, the Federal Reserve was stung by criticism that its lending programs to get credit flowing in the economy benefitted Wall Street not Main Street… “The Fed threw a lifeline to Main Street by announcing a significant intervention into the real economy and financial markets that intends to limit what will be a gut-wrenching increase in first-time jobless claims, unemployment, income losses and bankruptcies this year,” said Joe Brusuelas, chief economist at RSM.
Politico, Fears mount of a coronavirus-induced depression, Ben White, 03/23/20: Forecasts of doom for the American economy are quickly turning from gray to pitch black…“Disruption will take the form of a depression-like set of shocks that will require a significant intervention by the federal government into economic and social life for the foreseeable future,” RSM chief economist Joe Brusuelas wrote on Monday. The latest moves by the Fed and other government institutions “are just the latest in a series of actions that are likely to continue throughout this year and likely next in response to the global public health emergency caused by the Covid-19 virus.”
Associated Press, Q&A: What did the Fed do Monday and who will it help?, Christopher Rugaber, 03/23/20: The Federal Reserve took several aggressive steps Monday to support an economy ravaged by the effects of the coronavirus…Well, the Fed also announced Monday that it would soon set up the “Main Street Business Lending Program,” but it did not provide much information about the timing. Joe Brusuelas, chief economist at RSM, predicts that it will offer a very low interest rate, such as 2.25%, over five years with quarterly payments. Also picked up in The New York Times, ABC News and U.S. News & World Report, among others.
Reuters, A Fed 'bailout' for Main Street? Speed, collateral stand in the way, Howard Schneider, 03/23/20: U.S. Federal Reserve and Trump administration officials over the last week have greased corporate and bank financial markets, freed up half a trillion dollars for central banks in other countries, and pledged to keep major industries such as the airlines afloat…“We are heading to an effective partial shutdown of the U.S. economy over the period of four to six weeks,” that may require as much as $1.5 trillion to help small and medium sized businesses survive, more than four times what’s in the Senate bill for small business loans, said Joe Brusuelas, chief economist at RSM. Also picked up in The New York Times, Yahoo! Finance and U.S. News & World Report, among others.
CBS Moneywatch, Millions of workers already filing for unemployment benefits, Wall Street says, Irina Ivanova, 03/20/20: Workers are losing their jobs at an unprecedented pace as the coronavirus shutters businesses and brings the economy to a sudden stop…It can take anywhere from two to four weeks for a laid-off worker to show up in the official unemployment statistics, said Joe Brusuelas, chief economist at the global accountancy RSM. "This is going to be a rolling exercise in estimating the damage to the labor market due to the crisis."
Axios, U.S. jobless filings jump to 2-year high ahead of coronavirus impact, Dion Rabouin, 03/19/20: U.S. unemployment filings surged to 281,000 in the week ended March 14 — a two-year high and an increase of 70,000 from the week prior — according to Labor Department data released Thursday… "Given the job destruction that we are witnessing, policymakers and investors should anticipate first-time claims to soar toward the five-year moving average of 242,300 in the next few weeks," Joe Brusuelas, chief economist at tax advisory firm RSM, says in a note to clients.
CBS Moneywatch, Unemployment claims soar 33% as coronavirus hits home, Irina Ivanova, 03/19/20: The number of Americans applying for unemployment benefits surged to their highest level in over two years, the U.S. Labor Department said Thursday. It takes anywhere from two to four weeks for a laid-off worker to show up in federal unemployment claims data, Joe Brusuelas, chief economist at global accounting firm RSM told CBS MoneyWatch. During the current economic expansion, workers file an average of 243,000 jobless claims per week, he said.
Marketplace, Weekly unemployment claims start to give a snapshot of COVID-19 layoffs, Mitchell Hartman, 03/19/20: We got an important economic report from the Labor Department Thursday morning — first-time claims for state unemployment benefits. When the number starts going up sharply, it’s often a warning sign that the economy’s in trouble…Joseph Brusuelas at RSM Consulting said states are now being flooded with requests for unemployment benefits, and we should expect more. “Over the next two to four weeks, a massive increase in first-time initial jobless claims,” Brusuelas said.
Seeking Alpha, White House reconsiders new 50-, 25-year bonds to fund stimulus – Bloomberg, Liz Kiesche, 03/19/20: The Trump administration is revisiting the idea of issuing ultra-long bonds as it considers how to finance a $1.3T fiscal stimulus plan, Bloomberg reports, citing people familiar with the matter…"With the risk of negative rates out along the curve, the issuance of 50 year debt is a good idea," RSM US Chief Economist Joseph Brusuelas says.
The Week, The best way to avoid a coronavirus depression, James Pethokoukis, 03/19/20: On the eve of World War One, British Foreign Secretary Sir Edward Grey famously remarked, "The lamps are going out all over Europe, we shall not see them lit again in our life-time." …Forget about a V-shaped recession and recovery. It would look more like a Nike swoosh, as economist Joseph Brusuelas has described it.
Cheddar, RSM Chief Economist: $1 Trillion Fiscal Bailout Not Enough For US, 03/18/20: Joe Brusuelas, Chief Economist of RSM US LLP, joins Cheddar to discuss how the government plans to help Americans amid the coronavirus outbreak.
CBS Moneywatch, So many people are filing for unemployment, it's crashing government websites, Irina Ivanova, 03/18/20: As the coronavirus pandemic shuts down business across the county, a surge in newly laid off workers is crashing states' unemployment websites…The number of workers filing for unemployment could exceed the 660,000 a week reached during the Great Recession and even the 695,000 hit during the recession of 1982, said Joe Brusuelas, chief economist at RSM, a global accounting consultancy. "Given the three shocks—supply, demand, and financial—that are cascading in the real economy as we speak, we are likely to exceed the all-time high sometime in next two months," Brusuelas said.
CNBC, The story on the Street: ‘People sell what they can sell, not what they want to sell’, Jeff Cox, 03/18/20: The easiest thing is to blame the computers and the algorithms that keep them going, propelling the market ever lower in a death spiral that doesn’t seem like it will end. But that’s only part of the story that has churned out the most violent bear market in Wall Street history…“You’ve got a combination of panic, margin calls and fear,” said Joseph Brusuelas, chief economist at RSM. “They’re selling what they can sell and heading for the doors as quickly as they can.”
Forbes, NYSE To Close Trading Floor After Trader Reportedly Tests Positive For Coronavirus, Sarah Hansen, 03/18/20: The New York Stock Exchange will temporarily close its trading floor and move to fully electronic trading, the exchange announced on Wednesday, in response to the coronavirus outbreak; the move comes as investor fears and business disruptions caused by the virus continue to take an immense toll on markets…“Can’t help but think it’s the end of an era,” tweeted RSM U.S. LLP chief economist Joseph Brusuelas.
Wall Street Journal, Canada Rolls Out Fiscal Boost and Tax Deferrals for Coronavirus Relief, Paul Viera, 03/18/20: Canada announced a fiscal-stimulus and tax-deferral package amounting to nearly 4% of its gross domestic product, marking an aggressive effort to contain economic damage caused by the coronavirus pandemic and lower oil prices…Joseph Brusuelas, chief economist at tax and financial advisory firm RSM US LLP, said Canada’s financial system is exhibiting “disturbing conditions,” with stress reaching levels similar to the 2008 financial crisis. “The current shock to the financial system could be catastrophic,” he added. Also picked up in Morningstar and MarketScreener, among others.
S&P Global Intelligence, March retail market: US sales slip in February as coronavirus fears intensify, Tayyeba Irum and Chris Hudgins, 03/18/20: Experts predict rough months ahead for U.S. consumer spending as fears over the coronavirus outbreak contributed to a drop in retail sales in February over the previous month…"Consumers pulled back across the board on spending in February as the onset of the coronavirus began to shape household expectations about the economy and society," Joseph Brusuelas, chief economist at RSM US LLP said March 17.
MarketWatch, Costs of Fed’s new funding facility for big businesses draws complaints, Sunny Oh, 03/17/20: Investors gave a sigh of relief on Tuesday as the Federal Reserve took aggressive action to backstop the more than $1 trillion commercial paper market amid signs that it was freezing up in the last few days…“Those levels set by the Fed are entirely appropriate, given the prevailing economic and financial conditions,” said Joe Brusuelas, chief economist at RSM.
Associated Press, Fed launches 2 emergency programs last seen in 2008 crisis, Christopher Rugaber, 03/17/2020: In its latest emergency action, the Federal Reserve is establishing a lending facility to try to ease the flow of short-term credit to banks and businesses as the economy grinds to a halt from the viral outbreak…“The goal is to prevent a larger catastrophe that includes soaring bankruptcies, unemployment and underemployment,” said Joe Brusuelas, chief economist at tax advisory firm RSM. “While we are encouraged by this policy step, the Treasury will need to step up with other funds and bridge loans” that can help companies with lower credit ratings. Also picked up in The New York Times, U.S. News & World Report and Los Angeles Times, among others.
Washington Post, Federal Reserve launches special fund to keep credit flowing in U.S. economy during coronavirus scare, Heather Long, 03/17/20: The Federal Reserve is launching a special fund to keep credit flowing in the U.S. economy, yet another emergency measure as the world spirals toward a recession…“The [Fed’s] goal is to prevent a larger catastrophe that includes soaring bankruptcies, unemployment and underemployment,” wrote Joseph Brusuelas, an economist at audit firm RSM, in a note to clients.
Politico, Fed wages furious battle to unclog financial markets, Victoria Guida, 03/17/20: The Federal Reserve is aggressively moving to keep money flowing through financial markets battered by the coronavirus pandemic, making hundreds of billions of dollars available to ensure that cash is available to investors, companies and consumers…But Joe Brusuelas, chief economist at RSM, said the Fed is ultimately constrained in how much it can do, in part because its emergency lending powers for firms other than banks were reined in after the 2008 financial crisis.
WWD, Retail Sales Decline a Sign of Pain to Come, Evan Clark, 03/17/20: There are still more questions than answers about how hard the coronavirus will hit the economy, but one thing can be said for the impact — it’s started…Joseph Brusuelas, chief economist at middle-market consulting firm RSM, said the retail sales report was “foreshadowing the Great Reset.” “This data, which will be one of many reports going forward that show the slowdown in the economy, is why the federal government needs to engage in bold and persistent action to put a floor under the American economy in general and for small and medium businesses in particular,” Brusuelas said. Similar article also featured in Luxury Daily.
Politico, How ugly could it get? Trump faces echoes of 1929 in coronavirus crisis., Ben White, 03/16/20: The early signals from the coronavirus crisis point to a scale of damage unseen in the modern U.S. economy: the potential for millions of jobs lost in a single month, a historic and sudden plunge in economic activity across the nation and a pace of sharp market swings not seen since the Great Depression… “With new measures being put in place by the hour, the federal government at some point will have to consider a modern version of the bank holiday imposed by the Roosevelt administration back in 1933,” RSM Chief Economist Joseph Brusuelas wrote in a client note.
Wall Street Journal, Stocks Open Sharply Lower After Fed Slashes Rates, Amrith Ramkumar, Chong Koh Ping and Anna Hirtenstein, 03/16/20: U.S. stocks plunged Monday even after the Federal Reserve slashed its benchmark interest rate to near zero as investors remained concerned that the emergency measures won’t suffice to ward off a recession caused by the coronavirus pandemic…The reaction in U.S. markets showed investors were already looking past the Fed and waiting for the federal government to act with bigger stimulus measures, said Joseph Brusuelas, chief economist at RSM U.S. “Until they signal that they understand the magnitude of the coming demand shock, markets will continue to sell off and be subject to significant volatility,” Mr. Brusuelas said. Similar articles also featured in MarketScreener and Morningstar.
Benzinga, 'Dusting Off The Financial Crisis Playbook:' Dow Futures Point To Drop After Fed Announces Emergency Rate Cut, Jason Shubnell, 03/15/20: The U.S. stock futures market fell at the open Sunday evening, not long after the Federal Reserve cut interest rates to zero to 0.25%, the first time interest rates have been that low since the 2008-2009 financial crisis…"Restoring market functioning will not be easy and it is possible that despite the significant intervention back into capital markets today that it will not change the minds of risk averse market participants," said Joe Brusuelas, Chief Economist, RSM US LLP. Also picked up in Yahoo! Finance.
Yahoo! Finance, This week in Trumponomics: How to fail, Rick Newman, 03/13/20: An invisible bug is killing the Trump presidency. With stock markets plunging and coronavirus anxiety spreading, President Trump is following his usual game plan: Blame others. Attack enemies. Deny trouble. Change the subject…Economists think a recession is increasingly likely. “The exogenous shock of coronavirus … has now spilled over into the real economy,” economist Joe Brusuelas of financial firm RSM wrote on March 13.
Washington Post, Keeping your distance is good for public health but tough for small businesses, Jeanne Whalen, 03/13/20: As daily routines shut down in D.C. and beyond over the novel coronavirus, customers are disappearing for the small businesses that make up 44 percent of the U.S. economy…“We’re about to conduct a grand experiment in the United States. We’re going to figure out exactly every task that’s part of work that can be done remotely,” said Joe Brusuelas, chief economist at RSM, an auditing and consulting firm. “Small and medium-sized firms, these are the firms that are most likely going to need temporary bridge financing … to survive a sharp, albeit transitory, decline in economic activity.”
Axios, Brace for coronavirus supply shocks, Dion Rabouin, Joann Muller, Bob Herman and Courtenay Brown, 03/12/20: Products from major American companies including Apple, GM, Coca-Cola and even Facebook may soon become unavailable, as the fallout from the COVID-19 outbreak backs up and shuts down global supply chains…The supply shortage will likely expand significantly, experts say. "As East Asia starts to recover, the focus turns to Europe and then to North America," Joe Brusuelas, chief economist at tax and consulting firm RSM, tells Axios.
Tax Notes, Economists Split on Merits of Payroll Tax Cut to Bolster Economy, Jonathan Curry, 03/10/20: A pair of economists are pressing policymakers to quickly act on a payroll tax cut to help deliver relief to American households from the economic effects of the coronavirus, but others in the profession are less enthusiastic. “We know what to do to address a series of supply, demand, and financial shocks that are currently cascading through the economy,” Joe Brusuelas, chief economist for RSM US LLP, said on a March 9 National Association for Business Economics webinar. “What’s really called for here is a set of policies that will inject cash into household balance sheets, whether that’s through direct payments or a temporary payroll tax holiday.”
Commercial Property Executive, Policy Remedies for Coronavirus Appear Imminent, Paul Fiorilla, 03/10/20: Determining how to react to the coronavirus in policy terms has been held back by the uncertainty about its effect on public health. The speed and depth of the market reaction in recent days has changed that calculus: Policymakers are likely to be forced to act even though it remains unclear exactly how bad the health implications will be…Speaking at a webinar on Monday sponsored by the National Association for Business Economics, RSM U.S. Chief Economist Joe Brusuelas identified several types of economic shocks that could be caused by the coronavirus.
MarketWatch, Here’s how investors say policy makers could help businesses survive a coronavirus cash crunch, Sunny Oh, 03/10/20: The unique economic risk presented by the viral illness COVID-19 is roiling Wall Street as market participants wonder what measures that policy makers could take to ameliorate pressure on corporations facing a potential cash and credit crunch…Some economists, like Joseph Brusuelas at RSM, suggest the central bank’s supervisors could push banks to become more lax toward borrowers, so that viable companies are not pushed into bankruptcy when they skip a debt payment.
Seeking Alpha, Alpha Trader Talks Virus Fallout With Ryan Detrick And Joe Brusuelas, 03/10/20: This week's Alpha Trader podcast features hosts Aaron Task and Stephen Alpher talking about the market fallout from the coronavirus with LPL Financial's Ryan Detrick and the economic fallout with RSM's Joe Brusuelas…It's a highly unusual three-way shock facing the U.S. economy, says Joe Brusuelas - that's a supply shock, a demand shock, and a market shock. Even with all that, he's not expecting a recession, but instead an H1 slowdown to less than 1% growth (mostly to be seen in Q2 data).
The Hill, Coronavirus, oil prices drive market meltdown, Sylvan Lane and Rachel Frazin, 03/09/20: The twin threat of an expanding coronavirus outbreak and an oil price war hammered markets on Monday, raising the stakes of a global economic slowdown…“What I’m looking at here is the market preparing for a much larger shock to the economy and uncertainty for the rebound that will follow,” said Joe Brusuelas, chief economist at audit and tax firm RSM. Similar articles also featured in The Hill (1) and The Hill (2).
Marketplace, February jobs numbers don’t reveal much about economic impact of COVID-19, Mitchell Hartman, 03/06/20: Up to the week of Feb. 10 — when the Bureau of Labor Statistics surveyed employers and households to put together the monthly jobs report released Friday — things were still going pretty swimmingly. At least, in the U.S., which hadn’t been hit by a lot of the new coronavirus infections, related economic disruptions and financial market turmoil…The latest job report shows 273,000 new jobs in February and unemployment falling to 3.5%. For Joseph Brusuelas, chief economist at RSM Consulting, it’s “really the ‘last waltz’ of strong and robust monthly hiring.”
CNN Business, The US job market is strong -- but coronavirus could wreck it, Anneken Tappe, 03/06/20: America's labor market remained buoyant in February, Friday's jobs report showed. But economists are worried about whether the positive trend can hold up amid coronavirus concerns…Even though the US economy appears in good shape to absorb the shock the coronavirus outbreak is dealing to economies around the world, the jobs report -- like most economic data -- is backward-looking and doesn't allow a real-time assessment of the economy. So it might be time to pay more attention to shorter term employment data like weekly initial jobless claims going forward, said Joseph Brusuelas, chief economist at RSM. Similar coverage appeared in Seeking Alpha.
Wall Street Journal, Newsletter Special Edition: Labor-Market Momentum, 03/06/20: Employers added 273,000 jobs and the jobless rate fell back to a half-century low in February, signs of labor-market strength before the novel coronavirus started to spread in the U.S…"Policymakers and investors should take one last good look at the February U.S. employment data because it effectively represents the end of the multi-year string of strong monthly jobs reports." —Joseph Brusuelas, RSM US.
Reuters, U.S. employment report expected to show strength before coronavirus spread, Lucia Mutikani, 03/05/20: U.S. job growth likely slowed in February, but the pace probably remained consistent with a healthy labor market despite the coronavirus outbreak, which stoked financial market fears of a recession and prompted an emergency interest rate cut from the Federal Reserve…“Recession fears are a bit premature, a good portion of the economy is strong enough to absorb the first wave of hits,” said Joe Brusuelas, chief economist at RSM US in New York. Also picked up in The New York Times, Yahoo! Finance and Business Insider, among others.
CNN Business, The Fed might have to cut interest rates all the way to zero Matt Egan, 03/04/20: The Federal Reserve's quest to avoid a coronavirus-fueled recession may just be getting started…Joe Brusuelas, chief economist at RSM, said in the event of a "large economic downturn," the federal government should create a special lending facility that would provide financing directly to small and medium-sized businesses. The goal would be to minimize layoffs and bankruptcies. "We're going to have to rely on the big guns: the fiscal bazooka," Brusuelas said.
TD Ameritrade, Joe Brusuelas Discusses The Market's Reaction To Fed Emergency Cut, 03/03/20: RSM Chief Economist Joe Brusuelas appeared on TD Ameritrade’s “The Watch List” to discuss the market’s reaction to the Federal Reserve’s emergency rate cut.
Wall Street Journal, Stocks Drop Despite Surprise Fed Rate Cut, Akane Otani and Anna Isaac, 03/03/20: U.S. stocks and government bond yields slid Tuesday after the Federal Reserve lowered interest rates, but failed to assuage the anxieties of money managers monitoring the economic fallout from the coronavirus epidemic…“Fiscal authorities need to be the one that lead the way,” said Joseph Brusuelas, chief economist at RSM US LLP, which has lowered its forecast for U.S. gross domestic product growth to 1% for the first quarter. “Monetary policy is not well positioned to address supply shocks.” Similar article in ETF Trends and Morningstar.
Washington Post, Here’s what economists say the U.S. and other nations should do to avoid a coronavirus recession, Heather Long, 03/03/20: Economists and Wall Street investors had high hopes for a big global stimulus Tuesday as top economic leaders from the world’s major economies held a call to discuss how to address the coronavirus, which many say poses the biggest threat to the global economy since the Great Recession. But a statement released after the call did not include any new action, a major disappointment to many…“Fed policy can’t develop a vaccine, but it can quell a panic and bolster financial conditions,” said Joseph Brusuelas, chief economist at the audit firm RSM.
Los Angeles Times, Fed makes emergency rate cut amid fears coronavirus will wallop the economy, Don Lee, 03/03/20: The Federal Reserve, reacting swiftly to the coronavirus’ damaging blows to the economy, announced a sizable interest rate cut Tuesday — the first such emergency rate action since the Great Recession more than a decade ago…Those steps are likely to include regulatory relief and a special lending facility to help offset potential increases in unemployment and bankruptcies, said Joe Brusuelas, chief economist at RSM US. “It will soon be time for the federal government to bring out its biggest gun: fiscal firepower,” he said. Similar article in Xinhua.
Yahoo! Finance, Fed looks to 'stabilize financial markets' with rate cut: Economist, 03/03/20: The Federal Reserve cut rates by 50 basis points today, which RSM Chief Economist Joe Brusuelas says is their attempt to "stabilize financial markets". He joins the On the Move panel to discuss.
The New York Times, Why a Coronavirus Recession Would Be So Hard to Contain, Neil Irwin, 02/29/20: It looks more and more likely that the novel form of coronavirus will do meaningful economic damage to the United States…If a potential coronavirus downturn were a fire, the recession-fighters would be like a fire brigade low on supplies, fighting among themselves, and probably lacking the right chemicals to quench the flames anyway. “I’m looking at the combination of fiscal and monetary policy as potential triage,” said Joseph Brusuelas, chief economist at the accounting firm RSM. “All they can do is really mitigate the shock of supply chains and reduce the second-order effects.”
The Hill, Fed chief hints toward rate cut amid Wall Street coronavirus rout, Sylvan Lane, 02/28/20: Federal Reserve Chairman Jerome Powell said Friday that the central bank will likely take action to boost the U.S. economy amid a steep stock market selloff triggered by the coronavirus outbreak…"Fed action is warranted and will bolster financial conditions. However, it’s a necessary but not sufficient condition to address the crisis," said Joe Brusuelas, chief U.S. economist at audit and tax firm RSM. "The fiscal authority will need to act robustly to address the needs of the real economy sooner rather than later."
NPR, News Brief: Coronavirus Effects, Democratic Nominating Contest, David Greene and Steve Inskeep, 02/28/20: Stocks continue their free-fall amid fears of the coronavirus…Up until now, investors sort of thought this would be a hit to the economy in the first three months of the year and then a quick recovery. Now, chief economist Joe Brusuelas of RSM says it looks like the damage is going to continue at least into the summer. “Effectively, at this point, I think the first half of the year, economically, we're being close to it being lost at this point, Brusuelas said.”
USA Today, Fed chief signals likely rate cut next month in response to coronavirus, market meltdown, Paul Davidson, 02/28/20: The head of the Federal Reserve on Friday signaled the central bank's apparent willingness to cut interest rates as soon as next month amid a stock market that’s in crisis mode in response to growing coronavirus fears…Powell "utilized well-directed and needed open mouth operations on Friday in an attempt to begin taking back control of the narrative," RSM Chief Economist Joe Brusuelas said in a note to clients. The only question, he said, is whether the Fed will reduce its key short-term rate by a quarter or half a point.
Yahoo! Finance, Stocks plunge as coronavirus fears escalate, 02/27/20: RSM Chief Economist Joe Brusuelas joins the On The Move panel to discuss the impact of coronavirus on the markets and where investors should look to in the long term.
Washington Post, The Finance 202: Coronavirus is already disrupting the economy. Look at West Coast ports., Tory Newmyer, 02/27/20: Joe Brusuelas, chief economist for the consultancy RSM, was landing in Seattle about noon last Thursday when he noticed something odd from his plane window: There was only one ship in the city’s normally bustling port, and only one other ship actively offloading containers at a dock. Conversations with local business owners after he landed confirmed his suspicions, later backed up by data reflecting activity at West Coast ports: Fallout from the spread of the coronavirus in Asia is compounding a lingering hangover from the U.S.-China trade war, crimping the flow of goods from across the Pacific.
Axios, Market overwhelmingly expects rate cut next month, Dion Rabouin, 02/27/20: In one week, futures traders have gone from seeing virtually no chance of a rate cut at the Fed's next policy meeting to a more than three-quarters likelihood…"With Fed rate cut probabilities for the March meeting now at 70% either Powell, [vice chair Richard Clarida or N.Y. Fed president John Williams] need to address the shift in market expectations," RSM chief economist Joe Brusuelas tells Axios in an email.
The Hill, Coronavirus complicates Fed decision on rates, Sylvan Lane, 02/26/20: The spread of the coronavirus is posing a dire challenge to the Federal Reserve as it seeks to keep the economy stable and defend its independence from President Trump’s attacks…“A Fed rate cut will bolster financial conditions but it will take months to filter through to the real economy,” said Joe Brusuelas, chief economist at U.S. tax and audit firm RSM, in a Tuesday email. Brusuelas warned that if the coronavirus outbreak slumps the U.S. economy, it could take a special lending facility from the Fed and fiscal action from Congress to counter the damage.
Associated Press, Coronavirus poses tough challenge for economic policymakers, Paul Wiseman and Chris Rugaber, 02/25/20: The fast-moving coronavirus isn’t just confounding health officials. It’s also bedeviling policymakers and central bankers who are struggling to assess the economic damage from an outbreak that's reached 37 countries and territories, infected 80,000 people and killed 2,700 worldwide…So revving up demand is something policymakers are used to. But this time, they don’t have a go-to remedy for the kind of supply shock that the coronavirus is causing -- the lockdown of factories in China and elsewhere that is cutting off the flow of raw materials and finished products to customers around the globe. “Fed policy can’t fix that,’’ said Joe Brusuelas, chief economist at the tax advisory firm RSM. Also picked up in Washington Post, ABC News and The New York Times, among others.
USA Today, 'An economic pandemic': The coronavirus is becoming a bigger threat to the U.S., economists say, Paul Davidson, 02/25/20: As the coronavirus spreads and raises the risk of recession, some analysts are further downgrading their forecasts for the U.S. economy…Other economists have a more measured view. RSM chief economist Joe Brusuelas and Nationwide chief economist David Berson say the virus’s advance has not yet led them to further lower their forecasts. Both estimate the outbreak will trim first-quarter growth by a relatively modest two-tenths of a percentage point.
MarketWatch, The 10-year Treasury yield sets a new all-time low — here’s why, Sunny Oh, 02/25/20: A day after U.S. stock benchmarks recorded their biggest one-day selloff in two years, investors are taking shelter in the deepest, most liquid haven asset in the world — U.S. Treasurys…“The market is now pricing in a much slower pace of global growth that is consistent with around 2.5%, which is the widely accepted definition of a global recession,” said Joseph Brusuelas, chief economist at RSM, in an interview.
Washington Post, The Finance 202: Economic uncertainty from coronavirus, 2020 election is spooking investors, Tory Newmyer, 02/24/20: Nobody knows what’s going to happen next. That’s as true in financial markets as it is for the 2020 election. And the proof, in part, is in the divergence between a surging stock market and sinking yields for long-term Treasury bonds… From RSM chief economist Joe Brusuelas: S&P futures point towards a decline of 91.50 on the open. That data viz is an apt illustration of the risk aversion across global markets this morning.
POLITICO, Morning Money, Victoria Guida, 02/21/2020: … Yield curve inversion, again — Over the past few days, rates on the 10-year Treasury have dropped below those on the three-month Treasury, a so-called yield curve inversion that has previously been a harbinger of a recession. This part of the Treasury rate curve inverted last year but normalized after the Federal Reserve carried out a series of interest rate cuts. RSM’s Joseph Brusuelas: “The policy sensitive curve … has inverted again. It is clearly reflecting expectations of a much greater slowdown in global economic growth than anticipated at the outset of the year. The big question is, will it cause global central banks to step in?”
POLITICO, Welcome to budget day!, Ben White and Aubree Eliza Weaver, 02/10/2020: …RSM’s Joe Brusuelas: “The economy began the year with a strong pace of growth … but uncertainties point to modest activity ahead. That activity will be affected by the ability of the U.S. consumer to offset weak domestic manufacturing and the potential ripple effects of the coronavirus outbreak in China.”
Yahoo! Finance, Wage growth slows in January, 02/07/2020: LinkedIn Chief Economist Guy Berger joins Yahoo Finance's Julie Hyman, Adam Shapiro, Pras Subramanian, and RSM Chief Economist Joe Brusuelas to talk about LinkedIn's latest job data as well as the new figures from the U.S. Department of Labor. NOTE: Additional video clip from the “On the Move” segment featuring Joe can be found here: Clip 1.
Associated Press, January US jobs report may provide clarity amid disruptions, 02/07/2020: With China’s viral outbreak disrupting trade and Boeing’s troubles weighing on American factories, the January U.S. jobs report on Friday may provide timely evidence of the U.S. economy’s enduring health… “It takes a little bloom off the rose,” said Joe Brusuelas, an economist at RSM, a tax advisory and consulting firm. Also picked up in the Washington Post and ABC News, among others.
Seeking Alpha, January jobs report isn't a 'breakout to the upside', economists say, Liz Kiesche, 02/07/2020: Joseph Brusuelas, chief economist at RSM US LLP, doesn't see the stronger-than-expected January job gains as "breakout to the upside." He points out that 44K increase in construction jobs and 72K new jobs in education and health aren't going to be repeated in February.
TD Ameritrade Network, Joe Brusuelas On What To Watch In The Jobs Report, 02/06/2020: Big week, we have ADP, we have jobless claims and tomorrow is the monthly report. What are you thinking?...We’re probably going to see a really healthy gain in the topline, about 155,000. The unemployment rate is going to hold steady around 3.5 percent. Wages are going to continue to be a bit sluggish.
Cheddar, China Slashes Tariffs on U.S. Imports by 50 Percent, 02/06/2020: Joe Brusuelas, chief economist at RSM, discusses the impact of China cutting tariffs on $75 billion worth of U.S. products, and other market-moving events.
Bisnow, Sherwin-Williams HQ Is Not Coming To DFW, Kerri Panchuk, 02/06/2020: Paint giant Sherwin-Williams is not moving its corporate headquarters to Dallas-Fort Worth…RSM U.S. LLP Chief Economist Joe Brusuelas said at the time that all of the above would continue to create hurdles for relocating companies. “I think some of the internal issues in the state, especially around property taxes and a lack of labor, which drives up wages, suggest that things have slowed somewhat and at least for this year, it has fallen from the top perch in the CNBC study," Brusuelas said last year, when discussing Texas' fall from first place in CNBC's best places to do business survey.
Benzinga, What To Make Of The Wild Chinese Stock Market Swing And Its Impact On The US, Wayne Duggan, 02/05/2020: Despite a rising death toll and more than 20,000 confirmed cases of coronavirus infections in China, U.S. stocks came roaring back on Tuesday, seemingly shrugging off concerns that the virus could weigh on the Chinese economy and potentially negatively impact the entire global financial system…Wall Street analysts have estimated the virus will negatively impact China’s 2020 GDP growth by between 0.2% and 1.0% depending on the ultimate severity of the outbreak. On Monday, Joe Brusuelas, chief economist at RSM US LLP, said those estimates appear to be optimistic at this point.
Axios, The global economic threat of the coronavirus, Dion Rabouin, Joann Muller, 02/03/2020: The coronavirus has the potential to be as damaging to the global economy as the U.S.-China trade war, economists tell Axios, and if not contained could wreak havoc on businesses across the globe, with great uncertainty over how bad things could get... Between the lines: Fed chair Jerome Powell demurred action from the U.S. central bank at last week's January policy meeting, but his hand (and that of other central bankers) may be forced, Joseph Brusuelas, chief economist at tax and consulting firm RSM, tells Axios.
The Wall Street Journal, Boeing’s Woes Create Headwinds for U.S. Economy, Josh Mitchell and Doug Cameron, 02/02/2020: The U.S. economy just hit an air pocket…Joe Brusuelas, chief economist at RSM, says economists and investors may be underestimating the potential of a bigger hit as U.S. aerospace supply chains are disrupted. “Once those supply chains are shut down and labor begins to disperse into other jobs and other areas of the country, restarting those supply chains is much more difficult than commonly acknowledged,” he said. Also picked up in Morningstar.
Yahoo! Finance, WHO declares public health emergency for coronavirus, 01/30/2020: RSM LLP U.S. Chief Economist Joe Brusuelas joins Yahoo Finance’s Seana Smith to discuss the World Health Organization declaring the coronavirus a public health emergency.
The Wall Street Journal, Newsletter Special Report: GDP Steady, Outlook Stable, Jeffrey Sparshott, 01/30/2020: The U.S. economy headed into 2020 on solid footing, with growth settling back to the roughly 2% pace that has prevailed during the decade-old economic expansion…"Underlying fundamental estimates of growth showed an economy that continues to chug along at a slow and steady pace." —Joseph Brusuelas, RSM US. Similar article also featured in China.org.
POLITICO, Morning Money, Ben White, 01/30/20: …RSM’s Joe Brusuelas: “In his press conference following the statement publication Fed Chair Jay Powell, choose to pre-empt the financial media on risks around the coronavirus. Powell noted uncertainties around the outlook remain, including those posed by the new coronavirus.”
Axios, U.S. GDP growth slows to 2.3% in 2019, Courtenay Brown, 01/30/20: U.S. gross domestic product grew at a 2.1% annual rate in the final quarter of last year, the Commerce Department said on Thursday. For all of 2019, economic growth came in at 2.3% — less than the 2.9% in 2018…What they're saying: Heading into an election year, economic growth is "on unsteady footing," thanks to the indefinite production halt of Boeing's 737 Max and "global growth headwinds that may pick up linked to the coronavirus crisis across the globe," Joseph Brusuelas, chief economist at RSM US, wrote in a note to clients.
POLITICO, Morning Money, Ben White, 01/29/20: There’s slightly more drama in today’s Fed announcement given investor concern over the coronavirus…Will Powell mention the virus? — RSM’s Joe Brusuelas: “While we do not expect the Fed to acknowledge the Chinese-based outbreak in its policy statement due out on Wednesday — the news conference will be another matter.”
Forbes, Negative Rates: Economists Explain What Happens If The Fed Gives Trump What He Wants, Sergei Klebnikov, 01/28/20: Topline: The Federal Reserve is widely expected to keep interest rates unchanged in the 1.50% to 1.75% range when it concludes its committee meeting on Wednesday, despite President Trump’s plethora of recent calls for the U.S. to adopt negative interest rates…“The evidence is lacking with respect to negative interest rates and economic growth,” says RSM chief economist Joseph Brusuelas. If we follow the pattern in Japan, we would likely see benefits to autos and housing, but because the U.S. economy is so highly “financialized”(reliant on big banks to provide liquidity for different sectors), negative rates wouldn’t yield a good outcome in the long-term, he argues.
BNN Bloomberg, Bank of Canada needs to start cutting rates: Economist, 01/21/2020: Joe Brusuelas, chief economist at RSM, joins BNN Bloomberg to discuss what to expect from the Bank of Canada's rate decision and why a cut could benefit the country's economy.
The Wall Street Journal, Consumer Spending Solid at End of Holiday Shopping Season, Harriet Torrey, 01/16/2020: Consumers headed into 2020 on a solid footing, driving up retail sales in the final month of the holiday season…Still, updated numbers from Commerce showed retail sales outside of motor vehicles and gasoline declined in the prior three months. After a recent high in that category in July, “we’ve been on a smooth descent ever since,” said Joseph Brusuelas, chief economist at RSM US LLP. Also picked up in Morningstar.
Business Insider, A quick guide to what Trump's 94-page trade deal with China included — and left out, 01/16/2020: The Trump administration released the text of an interim trade agreement with China on Wednesday, offering for the first time the details of what will be expected in a new chapter of relations between the two largest economies…“Interesting how an objective of the trade deal is to end state directed commerce and trade," said Joseph Brusuelas, the chief economist at RSM. "Yet, the very premise of the agreement is predicated on state to state directed transactions. This almost surely sets up future rounds of tension and tariffs." Similar articles also featured in Politico and Yahoo! Finance.
The Wall Street Journal, Newsletter: The Trade Deal No One Wanted, Jeffrey Sparshott, 01/14/2020: The U.S. labor market is still going strong. But there are signs weakness in the factory sector is bleeding into the rest of the economy…"The decline in aggregate hours worked is a function of the lagged impact of the trade war, the phase-one deal notwithstanding, and forward looking investors should anticipate a noticeable slowing in consumer spending in the first quarter of the year in addition to the traditional holiday hangover in overall consumption," said RSM US economist Joseph Brusuelas.
The Wall Street Journal, Women Overtake Men as Majority of U.S. Workforce, Amara Omeokwe, 01/10/2020: …Women held more jobs than men in December for the first time in nearly a decade. There were 109,000 more women than men on U.S. payrolls. The figures don't include farm labor or self-employment, where men tend to outnumber women. "However, a look at cyclical dynamics implies that the women have the initiative in traditional employment," said RSM US economist Joseph Brusuelas. “We all often look for tangible evidence of change. It is now here in the data and can be used as a benchmark to measure equality and inequality in the labor force and the economy.”
The Wall Street Journal, Newsletter Special Edition: Ten Straight Years of Job Growth, Jeffrey Sparshott, 01/10/2020: Women held more U.S. jobs than men in December for the first time in nearly a decade, a development that likely reflects the future of the American workforce…“The [jobs] report strongly suggests that the labor market dynamics are tilting in the direction of women,” Joe Brusuelas, chief economist at RSM US, said in a note to clients. “We all often look for tangible evidence of change. It is now here in the data and can be used as a benchmark to measure equality and inequality in the labor force and the economy.”
Marketplace, Women are working more jobs than men. It’s probably not a blip., Amy Scott, 01/10/2020: For the first time in almost a decade, women are working more jobs than men…But as women take over more workplaces, and rise in the ranks, employers will respond, according to Joseph Brusuelas, chief economist at consulting firm RSM. “The whole notion of employment that’s largely been organized around the needs of men since the second World War is likely to change very quickly,” Brusuelas said. Expect to see more flexibility, better benefits and a smaller wage gap between men and women.
The Hill, Women now make up the majority of US workforce, Alexandra Kelley, 01/10/2020: Women held more U.S. jobs than men last December, the first time this has happened in nearly a decade. This is according to the Labor Department’s December payroll as reported in The Wall Street Journal. Women surpassed men by 109,000 jobs, holding 50.04 percent of jobs last month. The last time this happened was in mid-2010. In total, the U.S. saw an addition of 145,000 jobs in December 2019. Speaking to the Journal, Joe Brusuelas, the chief economist at audit and consulting firm RSM, stated that the “the [jobs] report strongly suggests that the labor market dynamics are tilting in the direction of women.”
Yahoo! Finance, The best ways to increase household savings, 01/10/2020: RSM Chief Economist Joe Brusuelas joins the On The Move panel to discuss the best ways to increase household savings and where its best to invest for long-term benefits.
Yahoo! Finance, Money-losing companies on the rise despite bull market, 01/10/2020: A high proportion of public companies have been losing money despite this long bull market. Yahoo Finance's Adam Shapiro, Julie Hyman, and Brian Cheung are joined by RSM Chief Economist Joe Brusuelas to discuss.
Reuters, WRAPUP 1-U.S. job growth seen slowing in December after robust gains, Lucia Mutikani, 01/10/2020: U.S. job growth likely slowed in December, but the pace of hiring probably remains more than enough to keep the longest economic expansion in history on track despite a deepening downturn in a manufacturing sector stung by trade disputes…“We are bringing individuals back into the workforce who have been out for quite some time, they need significant training, in some cases retraining,” said Joe Brusuelas, chief economist at RSM in New York. “We are not seeing higher wages because firms have to take all those costs.” Also picked up in New York Times.
Yahoo! Finance, US Adds 145K Jobs In December, Wage And Labor Market Gains Consistent With Fed's Outlook, 01/10/2020: The Bureau of Labor Statistics released employment data for the month of December, and the jobs report came in below economists expectations…RSM Chief Economist Joe Brusuelas said the December numbers are well within the range of the Fed's current economic outlook. "Modest wage and labor market gains are consistent with the Fed’s forward look on policy barring a significant exogenous shock to the economy," Brusuelas said. Similar article also featured in Benzinga.
NBC News, Hold steady and don't let the U.S.-Iran conflict derail your retirement funds, say investors, Martha C. White, 01/06/2020: The ripple effects from the death of Iranian Gen. Qassem Soleimani continued to make geopolitical as well as economic waves around the world in the first full week of 2020…“American shale oil production has changed significantly,” Joseph Brusuelas, chief economist at RSM US LLP, wrote on Friday, noting that U.S. output has risen by roughly 40 percent since 2014. “Given the changing oil supply dynamics, this is the primary reason why energy and commodity markets have been well behaved in the early hours following the airstrike,” he said.
Associated Press, Federal Reserve last month saw a declining risk of recession, Christopher Rugaber, 01/03/2020: The Federal Reserve’s policymaking committee saw much less risk of recession at its meeting last month, when it kept interest rates steady after three straight cuts and signaled that it expected to keep low rates unchanged through this year…Joe Brusuelas, chief economist at the tax advisory firm RSM, suggested that the risks to the U.S. economy “are, for now, contained.” “As a result, we do not expect any action by the Federal Reserve,” Brusuelas said. “There would need to be a much greater disruption to oil supply from the Persian Gulf to warrant a rate cut by the Fed in the near term.” Also picked up in The New York Times, ABC News and U.S. News & World Report, among others.
NPR.org, Oil Prices Reflect Concern, Not Panic, After Airstrike On Iranian General, Camila Domonoske, 01/03/2020: Oil is up and stocks are down: It's a predictable response to the dramatic U.S. attack on Iran's powerful military commander as tensions mount in the oil-rich Middle East…"Higher oil prices tend to cause outlays on capital expenditures in the oil, energy and extraction business, which sometimes will actually more than offset the drag caused by higher gasoline prices," says Joe Brusuelas, chief economist at RSM. Compared to ten or twenty years ago, he says, "we're now in a very different spot."
The Wall Street Journal, U.S. Manufacturing Shrinks for Fifth Month, Signaling Weak Start to 2020, Harriet Torry, 01/03/2020: The U.S. factory sector headed into 2020 on a weak footing, contracting in December for a fifth consecutive month as trade tensions continued to pressure manufacturers…“The ISM is the precursor of what’s likely to be a more noticeable decline in manufacturing sentiment in early 2020,” said Joseph Brusuelas, chief economist at RSM US.
Benzinga, Why Oil And Gas Stocks Respond To Political Unrest, Wayne Duggan, 01/03/2020: News of geopolitical unrest in the Middle East sent stock prices tumbling nearly across the board on Friday morning. Every market sector traded lower, with the lone exception of the energy sector…The good news for U.S. investors is that the nation is not nearly as vulnerable to Middle East oil production disruptions as it was just a decade or two ago. “U.S. shale oil production has changed significantly in just the past four years. increasing to 9.2 million barrels per day at present from 5.2 at the end of 2016,” RSM Chief Economist Joe Brusuelas said Friday. Similar article in Yahoo! Finance.