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The Conference Board forecasts 2.3% growth for the U.S. economy in 2025, citing strong momentum, but a slight decline in leading indicators suggests risks remain. The International Monetary Fund projects U.S. GDP growth of 2.7%, and a World Economic Forum survey shows that most chief economists expect Trump's policies to push inflation higher.
On the first day of his second term, President Trump signed a presidential memorandum announcing the US withdrawal from the OECD global tax deal, directing the Treasury and Trade Representative to notify the OECD that relevant commitments are invalid, and requiring a report on investigations into other countries' tax rules within 60 days. This move means that the global minimum corporate tax agreement faces obstacles in the US and requires congressional action.
In E.M.D. Sales, Inc. v. Carrera, the U.S. Supreme Court unanimously ruled that employers, when proving that employees are not covered by the overtime exemption under the Fair Labor Standards Act, only need to satisfy the usual civil evidentiary standard of 'preponderance of the evidence,' rather than the higher standard of 'clear and convincing evidence.' The ruling is seen by the legal community as a victory for businesses, helping to unify national standards and reduce litigation risks.
FASB unanimously voted on Wednesday (January 15) not to advance a standard-setting project aimed at requiring banks to disclose more information about credit risk transfer (CRT) transactions. Staff recommended against the project during the meeting, citing that existing accounting guidance (such as credit default swaps and purchased guarantees) and SEC Regulation K already require some disclosures. Despite the vote against it, several board members noted fragmentation in overall risk disclosure and suggested considering systematic improvements within a broader agenda in the future.
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has settled allegations that Adamis Pharmaceuticals (now DMK Pharmaceuticals) and its former CFO, Robert Hopkins, fraudulently generated revenue through illegal prescriptions and sham consulting agreements. The company agreed to pay $334,314, and Hopkins was barred from serving as an officer of a public company or practicing before the SEC.
Antonio Martino, former CFO of Silvergate Capital, is requesting that the U.S. SEC drop charges against him for misleading investors after the FTX collapse. Martino's lawyers argue that the SEC's charges lack evidence of personal financial motive and that both the company and Martino had fully disclosed the losses.
Last week, a lawsuit against the Public Company Accounting Oversight Board (PCAOB) was dismissed, following the termination of its investigation into an unnamed Texas accounting firm. This case reflects a series of recent challenges encountered by the audit regulator. The plaintiff's lawyers claimed victory, while the PCAOB downplayed the matter, stating that the dismissal did not address the merits of the case. The case involves challenges to the constitutionality of the PCAOB's investigation procedures, as well as external expectations that the agency may be weakened or marginalized under the Trump administration.
The slowdown in U.S. core inflation growth in December led to a significant single-day drop in the 10-year Treasury yield, and market expectations for the number of rate cuts by the Federal Reserve this year have been revised upward. Although energy prices pushed up the overall CPI, the easing of core price pressures provided relief to investors. Federal Reserve officials stated that the process of fighting inflation is ongoing, but achieving the 2% target will still take time.
U.S. Securities and Exchange Commission (SEC) Chief Accountant Paul Munter announced he will retire on January 24, following Chairman Gary Gensler. Munter joined the SEC in 2019, became Acting Chief Accountant in 2021, and was officially appointed to the role in 2023. During his tenure, he issued 22 statements and speeches emphasizing transparency in financial reporting and warning about misleading audits of crypto companies and the decline of professionalism in the accounting industry.
Meta has confirmed the termination of several DEI initiatives, including its supplier diversity program, and the disbanding of its DEI team. This move coincides with the company's announcement last week to end its third-party fact-checking program, and is seen as part of a broad adjustment of corporate policies ahead of the incoming Trump administration.