💬 Quoted: “The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”

The Fed got the big scissors out yesterday, cutting rates by 50 basis points instead of just 25. It’s the first rate-cut since March 2020; the current benchmark rate now sits between 4.75%–5%.

What this means for you: The move is expected to make borrowing cheaper for consumers and businesses, with ripple effects across the economy.

• Consumers can expect to see lower rates for mortgages, car loans, credit cards, etc.
• Lower borrowing costs could also spur more business activity, as companies will be able to access cheaper capital.

On the flip side: As interest rates go down, so will bank payouts. Consumers can expect to say goodbye to high-yield savings accounts, some of which are paying up to 5% annually.

👀 Looking ahead… The Fed released new projections yesterday that anticipate the rate will be cut an additional 50 basis points by December, implying a 25-basis-point cut at each of its two remaining 2024 meetings.

📵 Stat of the Day: Much like that one off-again-on-again ex, Gen Z’s relationship with social media can be described as love-hate – especially when it comes to TikTok and X. According to a new survey by social psychologist Jonathan Haidt and the Harris Poll, roughly half of US adults aged 18-27 wish TikTok (47%) and X (50%) were never invented – despite that same age group spending ~4 hours/day on those sites and other related social media. The figures for TikTok and X are far below the proportion of Gen Z who wish that YouTube (15%), Netflix (17%), the internet (17%), messaging apps (19%), and smartphones (21%) were never invented.

🤔 Did You Know? Can you name all three branches of the US federal government? If so, you’re ahead of the ~35% of American adults who can’t, per a May 2024 survey.

📰 Worth a Read: Can you believe the polls? It depends → (Knowable Magazine)