It’s Only Money
Market Highlights
The Fed cut interest rates by 25 basis points this week, bringing the federal funds rate down to 4.00% from 4.25%. Many were hoping for a bigger 50-point move, but the Fed chose to stay cautious. With the “neutral” rate closer to 3%, policy is still restrictive — meaning money is tight enough to cool inflation but not yet easy enough to fully boost growth.
The bigger story is what comes next. The Fed signaled two more cuts this year and more in 2026 if the economy keeps slowing. Inflation is still running above their 2% target, but it’s not the main concern right now. Rising unemployment and weaker job growth have become the bigger risks, and this first cut is meant to provide some relief without letting prices spin back up.
Bottom line: rates are finally heading lower, but the Fed is moving carefully. Expect borrowing costs — from credit cards to mortgages — to ease a bit in the months ahead, while inflation is likely to stay sticky. The next few jobs and inflation reports will decide how fast the Fed keeps cutting.
On My Mind
If you’ve been following the news lately, you know the world can feel heavy. Wars, politics, markets — it’s easy to think everything is falling apart. But this week I was reminded that there’s still a lot of good right in front of us.
My daughter flew back from Tokyo, and I was waiting just outside customs at the airport. It reminded me of that line from It’s a Wonderful Life about George Bailey liking boats and trains. Because there I was, standing among a crowd of people from all over the world — waiting for loved ones with hugs, balloons, flowers, and gifts. You could feel the anticipation, the joy, the relief. Strangers smiling, families cheering, kids running into arms that had been missed.
It struck me that in the middle of a troubled world, there are still these simple, powerful moments that bring us back to what matters. Connection. Family. Being present for each other. You don’t have to fly across the world to feel it — but standing there, I was reminded just how good it is to be waiting on the other side of the door for someone you love.
On This Day in History
On September 16, 1920, a wagon packed with explosives detonated on Wall Street, killing 38 people and injuring hundreds. Though anarchists were suspected, no one was ever convicted. The attack struck at the heart of America’s financial district and remains one of New York’s deadliest acts of terrorism.