Chairman Jerome Powell had been hesitant to make such a move despite public urging from President Trump. Now we have the rate cut America needs.
Mortgage Rates Fall to Three-Year Low
Mortgage rates have fallen to their lowest levels in three years, marking the third straight week of declines as President Donald J. Trump continues to make good on his promise to lower costs for the American people. From CNBC: “Mortgage rates dropped sharply Tuesday, as investors in mortgage-backed bonds seemed to buy in ahead of a widely expected rate cut by the Federal Reserve. The average rate on the 30-year fixed mortgage dropped 12 basis points from Monday to 6.13%, according to Mortgage News Daily. That is the lowest level since late 2022.”
Strong Economic Indicators Continue
More important to investors — and to most Americans — is today’s news that retail sales in August held up extremely well, and the July numbers were better than previously reported. Key Economic Data: - Retail outlays up 0.6% in August
- July figure revised upward to 0.6%
- Consumers remain the backbone of the economy
This data contradicts the narrative that sentiment is terrible, that the president’s tariff program has demolished optimism, or that inflation from increased duties would drive prices through the roof. Small Business Resilience
Another pleasant surprise: small businesses, which were reportedly crushed by tariffs, are performing well. The Bank of America Institute reports today:
“Despite uncertainty weighing on hiring, small business profitability remains positive and more firms appear willing to borrow.” Additional findings: - Small business profitability growth increased 0.5% year-over-year in August
- Business optimism rising with stronger sales expectations
- Improved earnings reported in August National Federation of Independent Business survey
GDP Growth Strong
The Atlanta Fed GDP Now shows the current quarter growing at 3.1%, up from 3% just days ago. | 
