Episode 52: The Federal Reserve’s modest rate cut signals a shift toward easing policy amid mixed economic signals.
- The Federal Reserve cut interest rates by 0.25%, the first decline since December.
- Mortgage applications surged nearly 30% in mid-September and refinance activity jumped 58% as 30-year fixed rates fell to 6.4%.
- The Consumer Price Index (CPI) rose 0.4% in August, pushing annual inflation to 2.9%.
- The Producer Price Index (PPI) dipped 0.1% in August after a 0.7% July gain. Annual PPI held at 2.6%.
- Construction and operating costs remain high despite slight easing in supply-chain pressures.
- Consumer sentiment fell to 55.4 in September, the lowest since May and down over 20% year-over-year.
- The Conference Board Leading Economic Index declined 0.5% in August and 2.8% over six months, weighed down by weak manufacturing and rising jobless claims.
- Housing permits fell 3.7% in August and 11% year-over-year.
- Policymakers are split on future interest rate cuts, but the easing cycle has begun.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
