Latest news with #RSMUS
Yahoo
17 hours ago
- Business
- Yahoo
RSM commits $1bn to AI strategy expansion
RSM US LLP, a provider of assurance, tax, and consulting services, has announced a $1bn investment over the next three years to expand its artificial intelligence (AI) strategy. The investment aims to accelerate 'innovation' and deliver 'transformative' value for clients and professionals, according to the company. It will focus on integrating agentic AI platforms—intelligent systems that autonomously perform complex tasks alongside humans—across RSM's operations and services. The announcement comes as RSM prepares to finalise a transatlantic merger, forming a partner-owned, multinational organisation spanning Canada, El Salvador, India, Ireland the UK and the US, with 23,000 professionals and $5bn in combined annual revenue. Brian Becker, managing partner and CEO of RSM US LLP, said: 'AI continues to be a strategic imperative for RSM, and our significant investment enables us to move decisively from exploration to execution, driving real outcomes for our people and our clients through responsible, business-led solutions. 'We're not simply adopting new technologies—we're transforming how we deliver value, combining deeper insights, greater agility and an unwavering focus on quality and impact.' The investment will support strategic initiatives over the next three years, including the development and investment in industry-specific AI tools and talent, and pursuing strategic ventures to build scalable AI frameworks and infrastructure. It will also involve fully integrating agentic AI into RSM's assurance, tax, and consulting services to optimise performance, unlock efficiencies, improve quality, and accelerate growth for clients. Additionally, RSM plans to empower its talent with agentic AI tools to enhance productivity and professional growth while enabling faster and more innovative solutions that deliver deeper insights and personalised support to clients. The investment will further expand agentic AI-driven solutions throughout the client lifecycle to elevate the overall client experience, the company said. Sergio de la Fe, enterprise digital leader and partner at RSM US LLP, said: 'Our $1bn investment is fuelling groundbreaking innovation to empower our talent and clients to achieve unprecedented performance. 'This commitment to our digital first strategy reflects a sustained journey that will continue to evolve well beyond this initial investment as we drive market-leading solutions and redefine how the middle market navigates the future.' RSM stated that its agentic AI strategy focuses on developing 'AI flows'—purpose-built workflows that enable professionals to leverage and optimise AI agents and generative AI capabilities. With its advisory expertise, RSM aims to combine human insights with advanced AI technology to drive continued growth for its clients. "RSM commits $1bn to AI strategy expansion" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Powell warns of more volatile inflation as latest data shows impact from tariffs
US wholesale prices sank in April, logging their biggest monthly drop since Covid stifled the economy, as tariffs put a squeeze on profit margins, according to new data released Thursday. The Producer Price Index, a closely watched measurement of wholesale inflation, showed Thursday that the prices paid to US producers dropped 0.5% in April from the month before, according to Bureau of Labor Statistics data. On an annual basis, inflation slowed to 2.4% from March, which saw sharp upward revisions to the initial estimates. A 0.4% monthly decline and a 2.7% annual rate were revised up to 0% and 3.4%, respectively. Economists were expecting monthly prices to rise in April by 0.2% and to slow to 2.4% on an annual basis, according to FactSet. A driving force behind the downward monthly swing was a 1.7% plunge in trade services, a category that measures gross margins for wholesalers and retailers. Although it's a volatile category, the sharp downward swing in trade services indicates that companies' margins are being eaten away by higher costs from President Donald Trump's tariffs, Joe Brusuelas, chief economist at RSM US, told CNN on Thursday. 'We are beginning to see the impact of trade policy filtering into the hard data in such a way that it's impossible to deny that it is now affecting revenues and profit margins for firms,' Brusuelas said. Those higher costs will likely start spilling over to consumers soon, he said. And the economy-powering consumers are already showing some signs of fatigue: Sales at US retailers slowed sharply in April to 0.1% after a surge of 1.7% in March, when shoppers rushed to beat the slew of new tariffs. Separately on Thursday, Federal Reserve Chair Jerome Powell warned that 'supply shocks' could force the central bank to keep rates higher over the long term. 'We may be entering a period of more frequent, and potentially more persistent, supply shocks — a difficult challenge for the economy and for central banks,' Powell said. He noted that 'inflation could be more volatile going forward than in the inter-crisis period of the 2010s.' On Tuesday, the latest Consumer Price Index data showed that overall inflation cooled further for the goods and services Americans commonly purchase. However, some economists pegged some of that softening to weaker demand. Trump's bevy of tariffs is widely expected to make items more expensive in the months to come and drive inflation higher. PPI, which serves as a potential bellwether for retail-level inflation in the months ahead, is starting to show some of those pressures. On the surface, the April PPI report appeared to portray a welcome decline in key areas, notably energy and food — including a continued plummeting of egg prices, which dropped 39.3% in April after falling 21.3% in March. Excluding food and energy, which can be volatile, core PPI also showed some softness, largely due to the big negative swing from trade services: Prices fell 0.4% for the month and annual inflation slowed to 3.1% from 4%. Despite the seemingly cool reading, tariffs are making their mark, Chris Rupkey, chief economist at FwdBonds, told CNN. 'Goods prices are picking up,' he said. Stripping out food and energy, prices for goods have been steadily on the rise. After posting a 0.1% increase in December, that category rose 0.2% in January, 0.3% in February and March, and 0.4% in April, Rupkey noted. The 0.4% increase is the fastest monthly inflation for that category in more than two years, BLS data shows. 'It looks like some of the fears of what is going to happen from these import tariffs is becoming a reality, and that is goods prices going up,' he said. 'That's a worrisome sign for inflation down the road, meaning it could be only a couple of months away.' And on Thursday, the world's largest retailer said as much: Walmart's chief executive officer told investors and analysts that Trump's tariffs are 'too high,' and that the company will start raising prices at its stores later this month. 'We will do our best to keep our prices as low as possible,' Walmart CEO Doug McMillon said Thursday on an earnings call. 'But, given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins.' 'The higher tariffs will result in higher prices,' he said. This story has been updated with additional reporting and information. CNN's Elisabeth Buchwald and Nathaniel Meyersohn contributed to this report.
CNN
07-05-2025
- Business
- CNN
The Fed leaves its key interest rate as is. Here's how you can benefit
The Trump administration's tariffs regime has disrupted markets, darkened the outlook for employers and businesses and hammered consumer sentiment. That's why it's more important than ever to take control of what you can financially. That can start with making sure your savings are earning the best returns possible and are parked in the right types of accounts, given your needs and time horizon. Since the Federal Reserve on Wednesday decided not to lower its key overnight lending rate, which affects interest rates throughout the economy, you can still earn a very healthy yield on your cash. That's good news since economists believe inflation — which came in at 2.3% in March – will be going up this year as a result of the tariffs. By how much? Joe Brusuelas, chief economist at RSM US, told CNN's Alicia Wallace he expects both headline and core inflation to top 4% later this year. So you'll want to look for returns on your cash that can match or beat that expectation. For money you're setting aside for emergencies or for near-term but not immediate cash-flow needs, consider using: FDIC-insured online high-yield savings accounts: Having a checking and savings account at one of the big brick-and-mortar banks is great for money needed to pay monthly bills, groceries and other everyday expenses. But for other money you want at the ready for less regular expenses, you'll get a much better rate in a high-yield savings account at an online FDIC-insured bank. All bank savings rates are variable — so will fall if the Fed lowers its benchmark rate later this year. But, for now, many of the highest-yielding online savings accounts are paying between 4% and 4.4%, versus roughly 0.1% at the biggest banks like Chase, according to FDIC-insured online money market accounts: Another online banking option that pays very competitively are money market accounts. 'The average MMA yield at brick-and-mortar banks is a scant 0.41%, whereas the top-yielding, nationally available MMAs offered by online banks pay 10 times that amount, 4.1% or more. Ten times the return, while still being fully covered by federal deposit insurance and (offering you) access to the money when it is needed,' said Greg McBride, Bankrate's chief financial analyst. For money you've set aside for down-the-line expenses like a down payment or a year or more of living expenses if you're retiring soon, you can lock in advantageous rates now through: Treasuries: Treasury bills come in six different maturities, ranging from four to 52 weeks. Treasury notes mature in two, three, five, seven and 10 years. If you buy one and hold it to maturity, you will lock in a rate of return that is higher than inflation while also preserving your principal. If you want to know how much you'll make by holding it to maturity, 'It's hard to beat,' said Ken Robinson, an Ohio-based certified financial planner who is part of Wealthramp, a network of experienced, fee-only advisers. As of Tuesday evening on Treasury bills were offering average yields ranging from a low of 3.88% to a high of 4.33%, while Treasury note yields ranged from 3.78% to 4.28%. Interest paid on Treasuries is exempt from state and local income taxes, so may be a good option if you live in a high-tax area. Know, though, that if you sell a Treasury before it matures, that can trigger a capital gain or loss on the price you get for it. AAA-rated municipal bonds: The tax advantages of high-quality municipal bonds are particularly favorable for those in high-tax states, and especially people in the top income tax brackets. The interest you earn on munis, which are issued by state and local governments, is exempt from federal income tax. It also may be exempt from state and local taxes if you buy one issued by your home state. '(Highly rated muni bonds) have a supremely strong record of paying what they're supposed to when they're supposed to,' Robinson said. As with Treasuries, he noted, the key to getting the most out of a municipal bond is to hold it to maturity. Certificates of deposit: CDs from FDIC-insured banks are a reliable place to park money that you can afford to lock up for a fixed period. For instance, CDs with maturation periods ranging from 3 months to five years were all offering average yields over 4% on A good number of individual one-year CDs were offering a return between 4.5% and 5%. Keep in mind, earnings on a CD are subject to federal, state and local income taxes. In addition, if you buy a CD direct from a bank, you may pay an early withdrawal penalty if you cash it out before maturity, although such a penalty will be tax deductible. If you buy a so-called 'brokered' CD on a brokerage platform — which offers you a much wider range of CDs to choose from — you might lose money on your principal if you don't hold it to maturity and instead sell it into the secondary market at less than you bought it for, Robinson noted. Money market mutual funds: Money market mutual funds are currently averaging 4.14%, according to Crane Data, with some funds paying close to 4.4%. Unlike with fixed-rate bonds, Treasuries or CDs, you can't lock in a rate of return with a money market fund. But it's an easy, one-stop shop to park money that will always get the best cash yields on offer. Money market funds, which invest in government and corporate debt securities, are considered low-risk investments that usually maintain a price of $1 a share, although there have been a few times when they 'broke the buck' and traded below $1 a share. If the fund invests in top-rated municipal securities issued by your home state, your returns may be tax-free. Unlike money market accounts, money market mutual funds are not federally insured. There is nothing encouraging to say about interest rates on debt other than at least the Fed didn't choose to raise rates, which would make your prospects for finding an affordable loan worse. That said, how you manage your debt is ultimately way more important than any move the Fed makes. Credit cards: Even if the Fed were to make dramatic rate cuts, the interest you pay to borrow money on a credit card likely will remain sky-high. In fact, the average credit card rate actually rose to 20.12% as of April 30 from 20.09% the week before, according to The best thing you can do if you carry high-rate credit card debt is to see if you can get a 0% balance transfer card, said Matt Schulz, chief consumer finance analyst at LendingTree. That will buy you up to 21 months interest free, during which time you can direct as much money as you can to paying down your balance. Mortgages: As of May 1, interest rates on the 30-year fixed-rate mortgage averaged 6.76%, according to Freddie Mac. That's 0.05 points lower than the prior week, and just under half a point below the 7.22% average recorded around May 1 last year. 'For those shopping for a home this summer, rates are likely to stay in or around (the 6.6% to 7%) range in the near future. Even a rate cut from the Fed may not send mortgage rates lower, as the Fed doesn't impact mortgage rates directly the way they do with credit cards,' Schulz said. Car loans: Financing a car purchase is always a little complex. But the math is harder now. 'Today's car shoppers are contending with the difficult duo of elevated vehicle costs and high borrowing rates,' said Joseph Yoon, a consumer insights analyst at 'Adding to this scenario is the ambiguity surrounding tariff repercussions on vehicle supply and, consequently, their price tags, forcing buyers to navigate an ever-more complicated shopping path.' In April the average amount financed for a new car rose about $400 to $41,444 at 7.1% interest over 69 months, with an average monthly payment of $744, according to data from For used cars, the average loan amount was up about $600 to $28,855 at 10.9% over 69.5 months, with an average monthly payment of $555. Yoon's advice: Be really clear what your needs are for a new car versus your wants — including things like size and desired features. Then shop around for the best deals and carefully compare loan offers. To help with the math, has a car loan interest calculator.
NZ Herald
01-05-2025
- Business
- NZ Herald
US economy shrank in early 2025 as tariffs sapped growth but President Donald Trump blames Joe Biden
'Growth has simply vanished,' Chris Rupkey, chief economist at Fwdbonds, a financial research firm, wrote in a note to clients after the report's release. 'Maybe some of this negativity is due to a rush to bring in imports before the tariffs go up, but there is simply no way for policy advisers to sugarcoat this.' Financial markets initially recoiled at the news, with all three major indexes trading lower for much of Wednesday before paring back those losses later in the day. Still, it was a tough month for the stock market, with the Dow Jones Industrial Average losing more than 3% of its value and the S&P 500 down about 1%. Trump dismissed the negative GDP reading, calling it an 'overhang' from the previous administration. 'This is Biden's Stock Market, not Trump's,' he posted on his social media site, Truth Social. 'Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers … This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other.' Still, economists attribute recent economic shifts to tariff-related anxiety. Earlier in the year, families and businesses ramped up purchases of foreign-made goods, including industrial equipment, cars, electronics, clothing and furniture, ahead of the Trump administration's tariffs, which largely went into effect this month. As a result, the US imported nearly twice as many goods as it exported in March. The trade deficit – the difference between incoming and outgoing goods – is the widest it has ever been, which is expected to be a significant drag on economic growth. Sales of American-made goods to other countries help bolster GDP, while purchases of foreign-made products count against it. GDP, the sum of all goods and services produced in the country, is the broadest measure of the economy. In the latest quarter, a surge of imports subtracted a record five percentage points from the reading. That drop was largely offset by consumer spending and business investments, though economists warn that those gains were probably the result of tariff-related front-loading and likely to lead to less spending later in the year. 'What we see is a series of one-time factors propping up the economy, in the guise of a $140 billion inventory accumulation and a 22% increase in equipment spending,' said Joe Brusuelas, principal and chief economist for RSM US. 'Those are going to completely reverse and then some, which tells me we're ripe for the onset of a recession midyear.' Democrats were quick to pounce on the President's handling of the economy, with Senate Minority Leader Charles E. Schumer (D-New York) saying Trump must 'admit his failure and reverse course, and immediately fire his economic team'. Economists say emerging economic weakness is not just a sign of current trepidation but, more pointedly, a warning that the situation may continue to worsen as the full effect of tariffs comes into view. The fact that many families and businesses have already stocked up on cars, appliances and other big-ticket items, for instance, means they won't have to make those purchases again anytime soon, further denting consumer spending. And businesses, which have largely held off on investments and hiring, are unlikely to reverse course right away. 'The weakness this quarter is also a preview of weakness in future quarters,' said Tara Sinclair, director of the Centre for Economic Research at George Washington University. 'We are seeing a dramatic change in people's behaviour, similar to what we saw during the shock of the pandemic. They're front-loading purchases they might've made later in the year, and that's very concerning for future quarters.' Although economists generally agreed that growth has petered out this year, their predictions ahead of the GDP report varied wildly: The Federal Reserve Bank of Atlanta's economic growth model was forecasting a 1.5% contraction in the first quarter, while the New York Fed's version was predicting 2.6% growth. Most economists' forecasts fell somewhere in between, though large swings in trade, business inventories and consumer spending have made it particularly tough to gauge the state of the economy. Some economists said the GDP report is likely to have overstated weakness in the economy. They pointed to a 3% increase in final sales to private domestic purchasers – a measure of the economy that excludes trade and inventories – as a sign that consumers and businesses are still on solid footing. Peter Navarro, Trump's senior trade adviser, doubled down on that argument, saying GDP had been skewed by tariff-related stockpiling. 'When you strip all of that out, and you strip out the volatility of inventories in the equation, we actually had about 3% GDP growth, which is very, very good and quite encouraging for employment,' Navarro said, speaking with reporters at the White House. A separate government report on Wednesday showed some progress on the Federal Reserve's fight against inflation. But lingering uncertainty over Trump's trade policies – which could drive prices higher in the months ahead – are likely to keep the Fed in a holding pattern for now. Although the central bank cut interest rates three times late last year as inflation started to ease, it has held off on further reduction despite pressure from the President as officials wait to see what trade wars do to the economy. 'The level of the tariff increases announced so far is significantly larger than anticipated,' Fed chair Jerome H. Powell said this month at the Economic Club of Chicago. 'The same is likely to be true of the economic effects, which will include higher inflation and slower growth.' Still, the latest personal consumption expenditures report shows cooling inflation: The price index rose 2.3% in March from a year earlier, down from 2.5% the previous month. That metric, not the consumer price index, is the Fed's preferred inflation gauge. Notably, the report showed a sharp monthly increase in consumer spending on motor vehicles and parts – another sign that buyers hurried to make purchases ahead of expected tariffs. Those large spending shifts are further muddling the economic picture at a time when there's already little clarity on what comes next. The Trump administration's sweeping new tariffs – which include a 10% tax on all imports and up to 145% on Chinese goods – have raised concerns that inflation may worsen. Perhaps the most significant wild card, economists say, is how Americans will respond in the months to come. Consumer spending, which makes up nearly 70% of GDP, has been driving much of the economy's recent growth. But surveys show many are worried about worsening inflation and unemployment, and consumer confidence has dropped to its lowest level since May 2020, according to data released by the Conference Board this week. There are also signs that Americans are starting to pull back on nonessentials. Consumer spending growth slowed to 1.8% in the first quarter, from a 4% pace at the end of last year, the GDP report shows. 'Everything is lining up for a much weaker, perhaps recessionary, economy dead ahead,' said Mark Zandi, chief economist at Moody's Analytics. 'Perhaps the most worrisome aspect of the report is the downshift in consumer spending growth – and that's despite the forward-buying because of tariffs. The consumer is the key to the outlook, and if the consumer starts to pack it in, we're going into recession.' Carmine's, a chain of family-style Italian restaurants with locations in New York, Washington DC and Las Vegas, is seeing an increase in customers, as cash-strapped families and businesses eschew pricier options, said Jeffrey Bank, chief executive of parent company Alicart Restaurant Group. Even though they are booking parties, it's clear they are feeling jittery, he said: For the first time, many are asking about the company's cancellation policies before signing contracts. 'People are nervous: Will there be a recession? Will I lose my job? Is my 401(k) up, down or sideways? They're trading down from their expensive steakhouse and coming to us,' he said. 'We saw it during the financial crisis, and we're seeing it now.'
Free Malaysia Today
30-04-2025
- Business
- Free Malaysia Today
Stockpiling ahead of tariffs likely hurt US economy in Q1
US President Donald Trump has softened the blow of auto tariffs through an executive order mixing credits with relief from other levies on parts and materials. (EPA Images pic) WASHINGTON : The US economy likely stalled or even contracted in the first quarter (Q1), swamped by a deluge of imported goods by businesses eager to avoid higher costs, underscoring the disruptive nature of President Donald Trump's often chaotic tariff policy. The commerce department's advance gross domestic product (GDP) report today would, however, grossly exaggerate the economy's dimming prospects. Coinciding with Trump's 100 days in office, it will reinforce Americans' growing disapproval of his handling of the economy thus far. Trump swept to victory last November on voter angst over the economy, especially inflation. Consumer confidence is near five-year lows and business sentiment has tanked, while airlines have pulled their 2025 financial forecasts, citing uncertainty over spending on nonessential travel because of tariffs, which economists have warned will raise costs for companies and households. 'The trade shock now looms large, overshadowing everything else that the White House has attempted to accomplish,' said Joe Brusuelas, chief economist at RSM US. 'The fact that we've gone from trade shock to financial shock to a possible recession in less than 100 days ought to give pause to those who want to continue down this road of tariffs,' Brusuelas said. A Reuters survey of economists forecast GDP likely increased at a 0.3% annualised rate last quarter, which would be the slowest pace since the second quarter of 2022. However, the survey was concluded yesterday, before data showed the goods trade deficit surged to an all-time high in March amid record imports, which prompted economists to sharply downgrade their GDP estimates. Economists estimated the trade deficit subtracted as much as 1.9 percentage points from GDP last quarter. Goldman Sachs forecast GDP contracted at a 0.8% rate. The economy grew at a 2.4% rate in the fourth quarter. Some economists warned against placing too much weight on the GDP number, arguing that an unusually large amount of non-monetary gold had accounted for some of the jump in imports. Adding to uncertainty over the forecast, the Atlanta Federal Reserve (Fed)'s model forecast GDP plunging at a 1.5% pace after accounting for imports and exports of gold. However, the New York Fed's staff projected GDP increasing at a 2.6% rate. Others argued that the data did not change the narrative of a struggling economy because of uncertainty due to tariffs. 'There isn't any real positives to take from the report we expect,' said Matt Colyar, an economist at Moody's Analytics. 'The kind of capricious way that these policies have been announced, it reaches everybody, everybody knows about it right off the bat, and they're rightly calculating that the stuff that they buy is going to go up more,' Colyar said. Higher inflation Prices are forecast to have increased last quarter and continue to do so through the year. The personal consumption expenditures price index excluding the volatile food and energy components is estimated to have increased at a 3.3% rate, which would be an acceleration from the October-December's 2.6% pace. Economists expect the Fed to resume cutting interest rates at some point this year. Trump yesterday softened the blow of his auto tariffs through an executive order mixing credits with relief from other levies on parts and materials. A 145% tariff on Chinese goods, which unleashed a trade war between Washington and Beijing, remains in place, as do an array of other import duties. Consumer spending, which accounts for more than two-thirds of the economy, is expected to have slowed down significantly. Most households pulled forward spending to avoid higher prices. With the labour market also cooling, consumers are mostly saving. Despite the surge in imports, inventory accumulation has remained moderate, which buttressed economists' argument that the GDP number should be taken with a grain of salt as the wider trade deficit was driven by gold imports. Some encouraged investors to focus on final sales to private domestic purchasers, which exclude trade, inventories and government spending, to get a better pulse of the economy. Others, however, saw this traditional measure of domestic demand as also having been distorted by tariffs. 'However, consumption spending was clearly inflated due to tariff-frontrunning, so the growth in spending is likely to overstate the growth in domestic output,' said Lou Crandall, chief economist at Wrightson ICAP. 'The potential measurement slippages in the inventory and net export numbers will make it hard to say exactly how large that overstatement might be,' Crandall said.
