X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Soft-landing enthusiasts (and who isn’t one?) have had much to feel good about since June 2004, when the Federal Reserve began tightening the reins on monetary policy following a historic series of easings that took short-term rates to 1%. No doubt, there are serious long-term challenges ahead for the U.S. economy–starting with worker health care and retirement planning for an aging population and the federal government’s renewed dependence on deficit spending. But economic growth has remained resilient, despite two years of steadily climbing short-term rates. Real gross domestic production rose 4.2% in 2004, 3.5% in 2005 and a stunning 5.6% in the first quarter of 2006.

This growth surge has helped generate substantial profits for most companies, and despite a sharp rise in stock buybacks and cash-led merger-and-acquisition activity last year, much of the windfall sits today in cash and cash equivalents. In fact, corporate cash hordes have expanded 50% since 1999, according to a study by Chicago-based treasury consultants Treasury Strategies Inc., with cash and short-term investments carrying maturities of three years or less rising 7.5% this year alone, to $5.4 trillion.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Dig Deeper

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.