RJ and Makay

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Economic analysts have increased their forecasts for the fourth quarter, and say the U.S. economy may end 2011 growing at its fastest rate in 18 months.  J.P. Morgan economists now see a gross domestic product (GDP) increase of 3% for Q4, up from a previous forecast of 2.5%.  The prediction comes just a few months after an economic slowdown raised concerns among investors.

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J.P. Morgan announced yesterday a new strategy to consolidate the mutual funds currently available to retirement plan participants.  A dozen or so company funds will be divided into a set of three portfolios that employees can choose from.  The Core Menu Innovation (CMI) strategy is not meant to replace a traditional target date approach.

Things have been looking up economically, but the road to recovery continues to be bumpy. In the face of slower revenue growth, increased regulation, and debt problems, many financial services firms are finding a need to cut costs. And, unfortunately, that means layoffs.

Among the companies that are expected to announce layoffs or have already done so are Wells Fargo, American Express, PNC, Fifth Third Bancorp, Synovus Financial, and State Street. In all cases, job cuts are expected to be in the hundreds or even thousands, resulting in expense reductions of tens to hundreds of millions of dollars. The goal, say analysts, is to reduce operating costs by as much as 20% over the next three years.