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Federal Reserve officials expect another interest rate increase before the end of 2026, although minutes from September's policy meeting suggest there is little urgency to raise rates again in October. Policymakers unanimously supported September's increase, the first in three years, amid persistent inflation driven partly by higher energy prices, tariffs, and AI-related investment. Most officials anticipate one further rate hike this year, with December increasingly viewed as the likely timing. New York Fed President John Williams and Fed Vice Chair Philip Jefferson have both signaled that the central bank can afford to wait for additional economic data. A weaker-than-expected September jobs report, including annual wage growth of 3%, has reinforced expectations of an October pause. Meanwhile, rising Treasury yields have already increased borrowing costs, reducing pressure on the Fed to tighten monetary policy immediately.

 

Bloomberg

CNBC

Wall Street Journal

Lululemon has appointed Athleta chief executive Maggie Gauger as its new president and chief product officer, effective later in October, as the sportswear retailer seeks to revive growth following more than a year of disappointing sales. The newly created role forms part of a leadership restructuring under chief executive Heidi O'Neill, who took charge in September. The company has also appointed Joseph Godsey as chief operating officer, while chief brand and product activation officer Nikki Neuburger and chief supply chain officer Ted Dagnese will depart in November. Lululemon is additionally recruiting a chief brand officer, chief communications officer, and chief technology officer.

 

CNBC

Reuters

United Parcel Service (UPS) has announced plans to recruit 100,000 temporary employees across the U.S. to manage increased parcel volumes during the upcoming holiday season. The additional workers will support package sorting, transportation, and deliveries during the peak period from late November to early January, when daily shipment volumes typically double. The hiring plans follow UPS's announcement earlier this year that it would cut up to 30,000 operational jobs and close 24 facilities in 2026. The restructuring aims to reduce shipments for its largest customer, Amazon, and shift toward more profitable deliveries. UPS previously recruited 125,000 seasonal workers in 2024.

 

Reuters

PepsiCo is facing growing pressure to deliver on growth and profitability targets established following activist investor Elliott Investment Management's roughly $4bn investment last year. The company is struggling with declining North American sales volumes, rising costs, and changing consumer preferences, particularly as GLP-1 weight-loss drugs encourage healthier eating habits. Despite cutting prices by up to 15% on selected snacks and introducing healthier products, including Doritos Protein and SunChips Fiber, PepsiCo's core operating margin fell 15 basis points to 16.3% in the first half of 2026. This contrasts with its target of a 100-basis-point improvement over three years. PepsiCo shares have declined nearly 12% this year, reflecting investor concerns about weakening demand and profitability. Analysts expect third-quarter revenue to rise 4.3% to $24.96bn, with adjusted earnings of approximately $2.29 per share. Investors will be watching for signs of recovering sales volumes, stronger pricing power, and improved margins.

 

Reuters

Americans' expectations for inflation over the next year rose to 3.9% in September, up from 3.6% in August and the highest level since May 2023, according to the Federal Reserve Bank of New York. Three-year inflation expectations increased to 3.3%, while five-year expectations remained unchanged at 3%. Consumers anticipate higher prices for gasoline, food, rent, medical care, and college education, contributing to worsening assessments of their current and future financial situations. Persistent inflation, driven partly by tariffs, rising energy costs, and technology investment, has prompted the Federal Reserve to raise interest rates to 3.75%–4%, with another increase expected before year-end. Despite growing financial concerns, households expressed greater confidence in the labor market, reporting reduced fears of unemployment and improved prospects of finding new jobs. Expectations for future household spending also reached their highest level since May 2023.

 

Reuters

U.S. consumer borrowing increased by $8.3bn in August, significantly below economists' forecasts of $15bn and down from a revised $17.7bn increase in July, according to Federal Reserve data. The slowdown was driven by a $4.8bn decline in revolving credit, including credit card debt, marking its largest drop since November 2024. Meanwhile, non-revolving credit, including auto and student loans, rose by $13.1bn, supported by stronger vehicle sales. Despite resilient consumer spending, households face increasing financial pressure from slowing wage growth, elevated prices, and higher borrowing costs. The average interest rate on credit card accounts carrying interest reached 22.36% in August, its highest level in a year, while rates on 60-month new vehicle loans stood at 7.54%. These pressures are particularly challenging for lower-income households and consumers carrying credit card balances.

 

Bloomberg

The Consumer Financial Protection Bureau (CFPB) has significantly scaled back its regulatory scrutiny under the Trump administration, with more than half of its spring examinations receiving expedited reviews, a historically rare process reserved for minor violations posing little risk to consumers. Approximately 70 companies have been selected for examination this year, roughly half the usual number, as the administration seeks to reduce regulatory burdens, cut staffing, and shift oversight toward banks, mortgages, and protections for military service members. Current and former officials have warned that political pressure, threats of job losses, and directives discouraging aggressive supervision could allow serious compliance failures to go undetected, potentially exposing consumers to financial harm.

 

Reuters

Starbucks has reduced references to diversity, equity, and inclusion (DEI) initiatives and softened its environmental commitments in its latest global impact report, shifting its focus toward chief executive Brian Niccol’s “Back to Starbucks” turnaround strategy. The report omits terms such as racial equity, LGBTQIA2+, and pay equity, alongside previously published workforce diversity statistics. It also removes prominent references to earlier targets for reducing waste and water consumption by 50% by 2030. Starbucks has acknowledged challenges in meeting its original greenhouse gas emissions reduction target and plans to announce a revised, science-aligned goal in early 2027. The company maintains that it remains committed to employee inclusion, community investment, and environmental responsibility. The changes reflect a broader shift in corporate DEI reporting, although Starbucks Workers United has criticized the company for retreating from its previous commitments. In other Starbucks news, the firm is laying off 51 employees in Washington state, including eight corporate staff at its Seattle headquarters and 43 retail workers affected by the closure of five coffeehouses. According to a regulatory filing, the corporate layoffs will take place between November 14th and December 4th.

 

The Columbian

The Seattle Times

CPA firms considering offshoring should begin by clearly defining their own requirements rather than focusing primarily on a provider’s size, qualifications, or general capabilities, according to Chandrashekar Nagarajan. Firms should determine the types and complexity of work they plan to offshore, whether teams will handle preparation, review, or both, and what responsibilities offshore professionals will be expected to manage independently. Mr. Nagarajan argues that firms should look beyond headcount and years of experience to determine whether professionals have relevant expertise for the specific work being delegated. Firms should also evaluate providers’ operating models, including responsibility for onboarding and integration, escalation procedures, replacement processes, relationship management, and the involvement of delivery leaders. References should similarly be used to assess specific areas such as integration, weaknesses, and responses to problems, rather than simply overall satisfaction. While factors such as price and data-security credentials remain important, the article concludes that firms should focus less on identifying the “best” offshore provider and more on finding the provider most suitable for their particular objectives and working model.

 

Accounting Today

Artificial intelligence (AI) companies are partnering with some drugmakers on virtual trials to boost the odds that an experimental medicine will be a success when used by human patients in a typically ‌expensive traditional clinical trial. The biopharmaceutical industry spends around $140bn annually on clinical testing: only 12% of drug candidates receive regulatory approval. "We shouldn't only ask how to run trials faster. We should ask how to run fewer trials that are going to fail," observed Francisco Beca, chief medical officer at QuantHealth, a Tel Aviv-based AI clinical trial simulation platform which uses real-world data ​and AI to simulate patient-level responses to therapies.

 

U.S. News

A TIGTA report has raised concerns that the IRS has failed to fully use Foreign Account Tax Compliance Act (FATCA) data to pursue taxpayers who may not have filed Form 8938, which is required for certain foreign financial assets. TIGTA identified 405 apparent non-filers with aggregate foreign account balances approaching $6.2tn, but only 164 were referred for examination, and just 12 of those examinations had been completed by the end of the audit period. Five of the 12 completed examinations resulted in $39.7m in additional tax, $30,000 in Form 8938 penalties, and $50,000 in other penalties. Another 241 taxpayers received educational or soft letters rather than examinations, with 34 subsequently filing amended returns that reported approximately $1.4m in additional tax. TIGTA estimated that the IRS could have assessed about $3.93m in initial Form 8938 penalties against 393 unexamined taxpayers, although the IRS disagreed with TIGTA’s recommendation to impose penalties on unexamined non-filers. The report could signal greater enforcement attention on foreign asset reporting as the IRS increasingly relies on technology and data analytics amid workforce reductions. 

 

The CPA Journal

The PCAOB has prevailed in a consolidated federal court case challenging the constitutionality of its disciplinary proceedings against two auditors. The auditors, identified as Doe 1 and Doe 2, faced separate allegations involving improper modification of audit documents, misleading inspectors, failure to cooperate with an investigation, and inadequate evaluation of significant accounting estimates. Both denied the allegations and argued that the PCAOB's enforcement procedures violated several constitutional protections, including the right to a jury trial and due process. The U.S. District Court for the District of Columbia denied the plaintiffs' motion and ruled in favor of the PCAOB. The regulator welcomed the decision, reaffirming its commitment to protecting investors and audit integrity. However, the New Civil Liberties Alliance, which has challenged the PCAOB's enforcement authority, continues to criticize its disciplinary system for allegedly lacking judicial oversight, transparency, and constitutional safeguards.

 

Accounting Today

Real estate developer Tishman Speyer and its investment partners have agreed to take over New York City's iconic Chrysler Building in a $235m deal with landowner Cooper Union, alongside ongoing ground-lease payments. The 77-story Art Deco skyscraper, currently less than 50% occupied and suffering from significant deterioration, will undergo extensive restoration, including improvements to its facade and distinctive crown. The acquisition comes amid surging demand for premium Manhattan office space, particularly around Grand Central Terminal, where major corporate developments, including JPMorgan Chase's new headquarters, have strengthened the area's appeal. The transaction also highlights the building's changing valuation, following an $800m investment by Abu Dhabi in 2008 and a subsequent $150m sale in 2019. According to Colliers, Manhattan office leasing reached 32.9m sq ft year-to-date, its strongest performance for the comparable period since 2000, reinforcing investor confidence in high-quality commercial properties.

 

Bloomberg

Financial Times

New York Times

The SEC has declined to pursue charges against major asset managers, including BlackRock, Vanguard, and State Street, over their involvement in climate-related shareholder activism ahead of ExxonMobil’s 2021 annual meeting. However, the regulator has warned that participation in coordinated investor campaigns, such as Climate Action 100+, could jeopardize eligibility for simplified, lower-cost ownership disclosures if those activities seek to influence corporate control or board appointments. The SEC has urged large investors to review their reporting obligations ahead of the 2027 proxy season, highlighting the growing regulatory scrutiny of environmental, social, and governance (ESG) engagement. BlackRock, Vanguard, and State Street have already scaled back their climate-related activities amid heightened legal and regulatory concerns.

 

Financial Times

Reuters

Canadian consumers plan to spend an average of C$1,487 ($1042) on gifts, travel, and entertainment this holiday season, down 11% from last year, according to PwC Canada’s 2026 Canadian Holiday Outlook. Travel spending is expected to record the steepest decline, falling 14%, while 75% of consumers plan to take steps to stretch their budgets, and 69% expect to purchase less expensive alternatives. Older consumers are driving the pullback, with Gen X and baby boomers planning to reduce spending by 21% and 18%, respectively, while millennials expect to spend 6% less. Gen Z is the exception, planning to increase holiday spending by 8%, with 38% expecting to shop over the Black Friday weekend, compared with 33% of millennials. Canadian-made products are also gaining favor, with 54% of consumers willing to pay more for them, up from 49% last year, while 72% are actively seeking alternatives to U.S.-made products. AI use for holiday shopping has increased from 17% to 28%, although physical stores remain the leading channel for discovering and purchasing products.

 

Toronto Sun

Toronto Star

U.S. luxury spending has declined for a third consecutive month, with credit card purchases falling 6% year over year in September after 4% declines in both July and August, according to Citi data, signaling further weakness in the industry’s largest market ahead of the November midterm elections. Spending on leather goods and ready-to-wear improved compared with August, but demand for luxury watches and jewelry weakened further. Citi said continued wealth growth among affluent consumers supported the top end of the market, with brands more exposed to wealthier shoppers expected to remain relatively resilient due to equity-market wealth effects. However, broader concerns about the U.S. economy, higher Treasury yields, and mortgage rates are weighing on consumer sentiment and spending. Morgan Stanley expects companies to highlight weaker U.S. demand during the upcoming earnings season and sees limited scope for the luxury sector to return to growth following two consecutive years of contraction, while Kering has also indicated that it expects the U.S. market to slow.

 

Reuters