Welcome to the November 2022 edition of our newsletter, bringing you important policy and high-impact news.
We hope you find it useful.
A Forum for Indian Businesses in North East USA
(Covering: Connecticut, Maine, Massachusetts, New Hampshire,
New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont)
The US economy’s growth was stronger than expected in the third quarter
The US economy grew much faster than expected in the third quarter, according to the latest gross domestic product report, which showed GDP rose by an annualized rate of 2.9%. That’s an improvement from the initial government reading in October that showed 2.6% growth in economic activity, and better than the Refinitiv forecast of 2.7%. And it’s a marked turnaround from economic contractions of 1.6% in the first quarter of the year and 0.6% in the second. The better-than-expected growth came as consumer spending increased more than in the government's previous reading, while the value of imports was revised down. Imports are subtracted from GDP, which is the broad measure of economic activity within the country.
The nation’s employers kept hiring briskly in November despite high inflation and a slow-growing economy — a sign of resilience in the face of the Federal Reserve’s aggressive interest rate hikes. The economy added 263,000 jobs, while the unemployment rate stayed 3.7%, still near a 53-year low, the Labor Department said Friday. November’s job growth dipped only slightly from October’s 284,000 gain.
U.S. CFOs Ask Congress to Repeal Change to R&D Tax Rules
Companies are asking lawmakers to repeal a change in the tax code that requires businesses to spread their research-and-development costs over five years rather than deduct them immediately. For decades, businesses were allowed to deduct certain R&D expenses straight away to reduce their taxable income. But under a provision of the 2017 Tax Cuts and Jobs Act that took effect this year, R&D expenses must be amortized over five years domestically and 15 years for international costs. Companies, including the 178 signatories, in recent weeks have signaled to investors that they are looking for Congress to once again allow companies to deduct these expenses immediately.
New York Gov. Kathy Hochul Signs Bill Limiting Cryptocurrency Mining
New York has become the first state to restrict cryptocurrency mining after Gov. Kathy Hochul on Tuesday signed a two-year moratorium, calling the move necessary to help protect the environment. The new law, which took effect immediately, will prevent the reactivation of fossil-fuel power plants for off-the-grid cryptocurrency mining. Cryptocurrency miners earn digital cash by solving mathematical equations with computers that require large amounts of energy to power. Mining that taps into the electrical grid will still be legal.
Biden Calls on Congress to Pass Legislation to Avert Rail Shutdown
President Joe Biden urged Congress to intervene to avert a "potentially crippling national rail shutdown," after multiple rail labor unions shot down an agreement brokered by the White House in September. American consumers and virtually all industries could take a hit at the beginning of the holiday season if workers do strike as soon as Dec. 5. Congress could intervene and impose contract terms on railroad workers, which is what Mr. Biden is urging them to do.
Artemis I Mission Starts Smoothly With NASA’s Historic Moon Launch
NASA’s Artemis I mission took a big step forward with a historic rocket launch that set the Orion spacecraft speeding toward a lunar orbit. The mission is part of NASA’s Artemis program, which aims to create a sustained human presence on the moon and push on to deeper-space operations. No one has touched down on the lunar surface since 1972. Now, Orion will face a series of tests in the coming weeks as it moves toward and around an orbit that will take it around 40,000 miles beyond the moon, before it races back to Earth.
