Fall is such a wonderful time of year, the mornings crisp and the turning leaves starting to brighten woodland and back yard alike. Happy Fall!

Over the past couple of years, the global economy’s been a lot like that Goldilocks story we all know, where the trick is to find the balance that’s “just right.” When things got going after the pandemic, the economy started heating up, kind of like the bowl of porridge that’s too hot. Folks were spending like crazy, and with supply chains struggling to keep up, prices shot up, giving us the inflation we’ve all been feeling. To cool things down, the Fed began to raise interest rates a couple years ago, trying to keep things from boiling over. They knew that if they pushed too hard and slowed the economy too much, we could end up with a cold bowl of porridge—things like higher unemployment and slower growth.

Last week the Fed began to cut interest rates, and they made their first trim by a substantial half a percent. Markets had been anticipating this first cut for some time and folks have decided that it is likely this Fed rate cut will be the first of many, with the approximate 5% rate we had been used to last month falling substantially over the balance of this year and next.

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