Powell, Rate Cuts, and Stagflation Risks
By John Lau, CPA, CFP® September 2, 2025 – Markets surged following Fed Chair Jerome Powell’s Jackson Hole speech, where he struck a more dovish tone and openly signaled that a September rate cut is on the table. That shift fueled aggressive rate-cut assumptions, propelling cyclical sectors, small caps, and broad indices higher. On the […]
PCE Data Rattles Investors Ahead of Jobs Week – September 2, 2025
Good morning, Markets limped into the long holiday weekend on Friday following the release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. While broadly in line with economists’ estimates, the report confirmed a firmer price environment than in recent months. Futures sold off immediately, and the S&P 500 fell -0.64% on […]
Interest Rate Cuts on the Horizon: How Lower Rates Could Affect Your Financial Plan
Will Interest Rates Drop? How it May Affect Your Plan There’s increasing speculation that the Federal Reserve might start lowering interest rates later this year or next. While no one can pinpoint the exact timing, it’s helpful to consider how a lower rate environment could impact financial decisions related to housing, estate planning, taxes, investing, […]
Investment Commentary – September 2, 2025
Executive Summary The S&P 500 closed out August near an all-time high, defying consensus commentary that was pessimistic. Coming into the month, many investors were bracing for seasonal weakness, the onset of new tariffs, elevated valuations, compressed credit spreads, and commentary related to the Federal Reserve’s independence. What drove the resilience? U.S. economic growth remained firm, […]
Economic Commentary – September 2, 2025
Lost in the sigh of relief that the inflation numbers (Personal Consumption Expenditures Index, or “PCE”) last Friday weren’t all that bad was the fact that inflation has conclusively ceased its movement to the Federal Reserve target of 2%. Given that the Federal Reserve has not changed its target inflation rate, it would normally be assumed […]