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The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated. “Job gains have slowed this year, and the unemployment rate has edged up but remained low through August,” the Fed said in a statement issued Wednesday. “More recent indicators are consistent with these developments.” The government hasn’t issued unemployment data after August because of the shutdown. The Fed is watching private-sector figures instead. Wednesday’s decision brings the Fed’s key rate down to about 3.9%, from about 4.1%. The central bank had cranked its rate to roughly 5.3% in 2023 an…

Want more housing market stories from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub newsletter. Federal Reserve Governor Michelle Bowman issued a housing market warning during a speech at the Kentucky Bankers Association Annual Convention in Asheville, North Carolina on September 23. Bowman noted that housing activity has slowed significantly, with declines in single-family construction and sales coinciding with rising inventories and falling house prices in many markets. “Declines in housing activity, including single-family home construction and sales, have been accompanied by higher inventories of homes for sale and falling house prices,…

The Federal Reserve faces an unusually contentious meeting this week that will test Chair Jerome Powell‘s ability to corral the necessary support from fellow policymakers for a third straight interest rate cut. The Fed’s 19-member rate-setting committee is sharply divided over whether to lower borrowing costs again. The divisions have been exacerbated by the convoluted nature of the economy: Inflation remains elevated, which would typically lead the Fed to keep its key rate unchanged, while hiring is weak and the unemployment rate has risen, which often leads to rate cuts. Some economists expect three Fed officials could vote against the quarter-point cut that Pow…

The U.S. Federal Reserve agreed to cut interest rates at its December meeting only after a deeply nuanced debate about the risks facing the U.S. economy right now, according to minutes of the latest two-day session. Even some of those who supported the rate cut acknowledged “the decision was finely balanced or that they could have supported keeping the target range unchanged,” given the different risks facing the U.S. economy, according to the minutes released on Tuesday. In economic projections released after the December 9-10 meeting, six officials outright opposed a cut and two of that group dissented as voting members of the Federal Open Market Committee. …

The economy has had a volatile year marked by ongoing headwinds and uncertainties. Persistent inflation, unpredictability around tariffs, and a stock market that many fear is in the midst of an AI-fueled bubble are among the factors impacting consumers’ spending power. But there is one event today that will hopefully deliver some much-needed certainty to the economy and broader markets: the Federal Reserve’s interest rate cut announcement. Here’s what you need to know about a possible Fed rate cut today. What is the Fed rate cut announcement? The Federal Reserve is America’s central bank. One of its main responsibilities is setting the country’s interest rates.…

Kelly Krasner was always interested in healthcare, but losing both parents to cancer when she was 24 reinforced what she thought would be a lifelong calling. After spending 13 years helping hospitals integrate more cancer screening and diagnosis technologies as a radiology sales and marketing director, Krasner spent six more working at various healthcare technology startups. When her company downsized and she lost her job in 2023, however, Krasner said it felt nearly impossible to get back into the industry. “I was applying and applying, and unfortunately—perhaps because of my age, my status, or people thinking I had to have a high title or a high income—I just wa…

The Federal Reserve’s favored inflation gauge accelerated slightly in August from a year earlier. The Commerce Department reported Friday that its personal consumption expenditures (PCE) price index was up 2.7% in August from a year earlier, a tick higher from a 2.6% year-over-year increase in July and most since February. Excluding volatile food and energy prices, so-called core PCE inflation showed a 2.9% increase in prices from August 2024, the same as in July. The increases were what forecasters had expected. Prices rose 0.3% from July, compared to a 0.2% increase the month before. Core prices rose 0.2%, the same as in July. Separately, the report show…

The Federal Reserve’s preferred measure of inflation changed little in September, likely easing the way to a widely expected interest rate cut by the central bank next week. Prices rose 0.3% in September from August, the Commerce Department said Friday, in a report that was delayed five weeks by the government shutdown. It matched the increase recorded during the previous month. Excluding the volatile food and energy categories, core prices rose 0.2% in September from August, the same as August, and a pace that if it continued for a year would bring inflation closer to the Fed’s 2% target. Compared with a year ago, overall prices rose 2.8%, up slightly from 2.7% i…

Want more housing market stories from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub newsletter. Earlier in the spring, the Federal Housing Administration (FHA) announced that, starting in late May 2025, H-1B visa holders and other non-permanent residents would be banned from taking out new FHA mortgages. The result? Non-permanent residents—including H-1B visa holders—saw their share of FHA mortgage locks crater from 3.8% in September 2024 to 0.2% in September 2025, according to Optimal Blue. This sharp pullback comes after their share of FHA mortgage locks had spiked between 2020 and 2024. Keep in mind that FHA mortgages make up a much …

A federal judge said Tuesday he’s leaning toward denying a preservationist group’s request to temporarily halt President Donald The President’s White House ballroom project, saying the organization failed to show that “irreparable harm” would be caused if the project moves forward. U.S. District Judge Richard Leon said he could issue a final decision on the restraining order by Wednesday. But Leon said he plans to hold another hearing in January on the National Trust for Historic Preservation’s request to pause the ballroom project until it goes through multiple independent reviews and wins approval from Congress. In the meantime, Leon warned the administration to not m…

Republican and Democratic lawmakers at an impasse on reopening the federal government provided few public signs Sunday of meaningful negotiations taking place to end what is about to be a six-day shutdown — with President Donald The President saying that layoffs are occurring. Asked on Sunday night when federal workers would be fired as he has threatened to do, The President told reporters: “It’s taking place right now and it’s all because of the Democrats.” “The Democrats are causing the loss of a lot of jobs,” The President added, declining to answer a question about which agencies are subject to the cuts. The possibility of layoffs would escalate an already tense si…

Transportation Secretary Sean Duffy said Monday that the government shutdown is putting more stress on air traffic controllers who already have an extremely stressful job, as well as threatening a program that small communities rely on to help subsidize airline service. Controllers are expected to continue working without a paycheck, Duffy said, so they are now worried about how to pay their bills in addition to worrying about keeping flights safe. And there have started to be instances of controllers calling out sick, leading to delays at several airports Monday. “Now what they think about as they’re controlling our airspace is, how am I going to pay my mortgage? How d…

After months of uncertainty, some federal student loan borrowers will soon have their debt canceled. But there’s a hook: You must be enrolled in a very specific program and have made sufficient payments to qualify. Some borrowers have been receiving notices in recent weeks that read: “You are now eligible to have some or all of your federal student loan(s) discharged because you have reached the necessary number of payments under your Income-Based Repayment (IBR) Plan.” The IBR plan, first introduced in 2007, offers debt cancellation after 20 or 25 years of repayment, depending on the age of the loans. Nearly 2 million borrowers were enrolled in this program as o…

With every passing day of the government shutdown, hundreds of thousands of federal employees furloughed or working without pay face mounting financial strain. And now they are confronting new uncertainty with the The President administration’s promised layoffs. Little progress has been made to end the shutdown as it enters its third week, with Republicans and Democrats digging in and convinced their messaging is resonating with voters. The fate of the federal workers is among several pressure points that could eventually push the sides to agree to resolve the stalemate. “Luckily, I was able to pay rent this month,” said Peter Farruggia, a furloughed federal worke…

Alexandra Shaker, PhD, is a licensed clinical psychologist with a background across inpatient and outpatient treatment settings. She has experience in research, teaching, and clinical practice. Dr. Shaker’s writing is an interdisciplinary exploration of the human condition: she integrates psychology, literature, history, anthropology, and language to speak to the meaning and vitality we find in the stories we tell one another and ourselves. Dr. Shaker received her PhD in clinical psychology from The New School for Social Research and conducted her doctoral research at the Brief Psychotherapy Research Program at Mount Sinai Beth Israel. She completed her clinical training …

World Labs, the AI model developer cofounded by AI pioneer Fei-Fei Li, has released its 3D-space generating model, “Marble.” At the Marble Labs website, creators can now input text prompts, images, or videos of pieces of a real-world environment. Marble uses them to create full 3D environments, which can include interior spaces or expansive exterior ones. Marble can reconstruct, generate, and simulate 3D worlds—think of it as a type of “world model.” In an interview with Fast Company, Li describes world models as a “significant” evolution of the generative AI era. “The large world model is really a significant step towards unlocking AI’s capability,” a category she ca…