Final Cut

The Fed cut rates again, but they’re not singing kumbaya. 

The Central Bank voted on Wednesday to trim its benchmark rate by a quarter percentage point, bringing the federal funds target to 3.50-3.75%—the third-straight cut this year. The decision was unusually divided: the vote was 9-3, with two policymakers voting to keep rates unchanged (citing inflation—sitting at 2.8%, stubbornly above the Fed’s 2% goal) and one pushing for a larger, half-point cut (citing a cooling jobs market). 

Markets cheered. Stocks closed up on the news—the S&P 500 +0.7%, the Dow +1.1%, and the Nasdaq +0.3%.

Fed Chair Jerome Powell said the bank is now positioned to “wait and see how the economy evolves from here,” signaling a likely pause in further cuts unless data weakens.

ETERNAL PERSPECTIVE
Our hope is never contingent on an economic outcome; it’s much more secure than that. Regardless of whether things get worse or better during your lifetime, everything eventually ends well for followers of Christ.

“Set your minds on things above, not on earthly things. For you died, and your life is hidden with Christ in God. When Christ, who is your life, appears, then you also will appear with him in glory.” 
Colossians 3:2-4 (CSB) (read full passage)