World Perspectives

Weaker Consumer Finances Darken Economic Outlook, Despite Interest Rate Cuts

The past two weeks have seen the typical influx of macroeconomic data releases, most of which helped prompt the Federal Reserve to issue its 50-bps interest rate cut on Wednesday. While the interest rate cut was initially viewed as a positive signal (lower interest rates generally increase economic activity), history suggests rate cuts can precede market corrections or recessions. This is highly dependent on other factor at play in the economy, which WPI attempts to examine here.  WPI looks at macroeconomics through three primary lenses: national-level factors, consumer income and finances, and consumer spending. The first, national-level factors, includes items such as stock market valuation, the Treasury yield curve, and the inflati...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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