NFIB Weekly News

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NFIB Weekly News Leading the News

Powell: “Current Situation” Of “Rising Wages, High Job Creation” Is Sustainable (02/18/2020)

Reuters (2/12, Saphir, Dunsmuir) reported that in an appearance before the Senate Banking Committee, Federal Reserve Chair Jerome Powell “reiterated his confidence in the US economic outlook, even as he said he expected some drag ‘soon’ from China’s new coronavirus epidemic and called out the threat from income inequality and an expanding federal debt.” Powell was quoted saying, “There’s no reason why the current situation of low unemployment, rising wages, high job creation – there’s no reason why it can’t go on. ... There is nothing about this economy that is out of kilter or imbalanced.” According to Reuters, “His remarks underscored the central bank’s view that its current target range for short-term borrowing costs, between 1.5% and 1.75%, is the right setting to keep the expansion on track.”

Business Climate

Commerce Department: Consumer Spending Rose In January As Fed Says Manufacturing Posted Decline (02/18/2020)

The Wall Street Journal (2/14, Torry, Subscription Publication) reported the Commerce Department on Friday announced retail sales rose by a seasonally adjusted 0.3 percent in January over the previous month, but the Federal Reserve separately said industrial production fell by the same amount over that period. The Wall Street Journal (2/14, Chaney, Harrison, Subscription Publication) reported the Fed attributed the decline to warmer than usual temperatures and weaker production of Boeing aircraft.

Small Business Marketing

CDP “Rush” Is Attracting Major Cloud Players (02/18/2020)

Ad Age (2/10, Slefo) reported on the “rush to CDPs,” or Customer Data Platforms, which are variously seen as a possible solution to the disappearance of third-party cookies for targeting or “another three-letter acronym in search of a business case.” Ad Age examines how CDPs generally work – as data repositories rather than activation engines – and which cloud providers are piling into them, including Oracle, Adobe, and Microsoft, while Salesforce and SAP plan launches this year. The most robust CDPs “must be at the center of a company’s marketing technology stack” to be “truly effective.” Monthly recurring revenue from a CDP can range from “$5,000 to $10,000...and that figure can grow exponentially.”

Wages and Benefits

Bank Of America Looks To Expand Employee Benefits Group (02/18/2020)

Bloomberg (2/12) reported Bank of America “is seeking to become a one-stop shop for employee benefits” as the company begins “uniting its offerings for employers – including retirement, health care savings, equity and deferred-compensation plans – alongside its traditional banking and investing services.” Specifically, the bank plans to hire 150 employee benefit specialists across the U.S. as it expands by first targeting existing corporate banking clients. The bank currently “has relationships with 95% of Fortune 1,000 companies, as well as 3 million small-business owners,” offering significant scope for growth.