Fed kicks off rate-cutting cycle with big first step | C-Suite Insights 9.25.24
The CEO of Accenture Talks Leadership, AI, and Talent
"We've always talked about technology changing, but I will tell you that we've never seen anything like this in Gen AI and the rate of change. It will be impossible for any regulator to keep up on their own... Proper and appropriate regulation is as important to companies as it is to the regulator. We have the same interest of creating safe and healthy communities, having regulation that provides the right playing field, the right guidelines, so that we can all really reap the benefits of Gen AI and manage through the risks.”
This reflection comes from Julie Sweet , CEO of 埃森哲 . Along with the Accenture team, Sweet is a recipient of the 2024 Distinguished Leadership Awards from the Committee for Economic Development (CED), the public policy center of The Conference Board.
Sweet sat down with Dr. Lori Esposito Murray , former President of CED and Co-Chair of the 2024 Distinguished Leadership Awards, to talk about how Accenture lives through its values and purpose, why Gen AI will touch every part of the enterprise, and how Accenture ensures every employee is “net better off” in terms of their skills.
For information about sponsoring the 2024 Distinguished Leadership Awards Celebration, contact Brian Teagle.
Fed Threads the Needle with Bullish 50bp Rate Cut
The Federal Reserve offered something for everyone—from doomsayers to optimists—at its September meeting?last week.
Easing cycle kicks off with big cut—but no panic: For investors and observers who feel the economy is under stress and that the Fed is behind the curve, the FOMC cut rates by 50 basis points—double what many more sanguine observers thought sufficient.
For the latter, Chair Powell took pains to explain that the latest data reveal solid GDP growth, a still-healthy labor market, and growing confidence that inflation is trending toward 2%.
Days of super-low rates are over: After September’s big cut, the Summary of Economic Projections (SEP) foresees an end-2024 federal funds rate target of 4.4%. That likely means smaller 25bp cuts in November and December. The SEP then projects the target receding gradually to 3.4% by the end of next year, before stabilizing around 2.9% by yearend 2026.
The TCB take: We anticipate the fed funds rate may stabilize sooner and a bit higher—around 3.1%—by yearend 2025. Either way, that’s roughly double the 1.5% average between the Great Recession and COVID-19 pandemic.
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Consumer Confidence Fell in September
The Conference Board Consumer Confidence Index? declined in September to 98.7 (1985=100), from an upwardly revised 105.6 in August.
The TCB take: September’s decline was the largest since August 2021, bringing the Index near the bottom of the narrow range that has prevailed over the past two years.
Silence Is Golden: Embracing Neutrality in Polarized Times
Just a few years ago, companies embraced commenting on social and political issues as an opportunity for brand differentiation. But the pendulum is swinging back...
In today’s polarized environment—where a stance that pleases one group of customers, employees, investors, or other stakeholders can upset another—social and political commentary often creates more problems than benefits.
Playing it safe: Over the past few years, companies have increasingly stayed nonpartisan on issues to protect their business. They recognize that many people just want to buy what they like without purchases being interpreted as a political statement. The 美国宾夕法尼亚大学 , 美国斯坦福大学 , and 美国哈佛大学 even went so far as to publicly declare their commitment to "institutional neutrality."
Leave politics out of it: Companies are especially focused on neutrality this year, with major elections in the US and around the world. They are intent on preempting workplace tension and staying out of political candidates’ comments.
The TCB take: There is an opportunity for “neutral brands” that emphasize features that everyone can embrace—quality, price, durability, convenience, taste, health benefits, and so forth.
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Corporate Citizenship Is Becoming a Driving Force in Environmental Responsibility
Corporate citizenship leaders and departments—which have long focused on addressing social issues—are expanding their remit to address key environmental concerns.
By the numbers:
What sustainability issues top the list? Emissions, water, renewable energy, and climate resilience emerged as the top priority issues in the citizenship field.
The TCB take: Here are recommendations for leaders looking to increase the impact of corporate citizenship:
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QUOTBLE: Is Your Compensation Competitive?
“Base salary compensation remains strong with a projected increase of 3.9%...That signals that the economy is stable, attraction and retention are a priority, and you need to be laser-focused on competitive compensation to retain your talent.”
— Rita Meyerson, Ed.D. , EdD, Principal Researcher, Human Capital, The Conference Board. She joined a recent C-Suite Perspectives?to discuss the extent to which companies are planning to increase employee base pay next year.
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