The Federal Reserve has what’s called a "dual mandate"—keep everyday prices stable while promoting an economy that creates jobs. Managing that dual mandate is becoming more challenging this year, with prices and jobs giving mixed signals. Let’s start with inflation. The Fed has a preferred inflation report called the Personal Consumption Expenditures Price Index (PCE). It’s similar to the Consumer Price Index but has some unique features that the Fed likes. The most recent update showed prices increased 2.6 percent for the year—a little “hotter” than the Fed wanted to see. At the same time, the August jobs report showed the economy added 22,000 jobs—a little "cooler" than what the Fed wanted to see. Here’s what could happen if the Fed makes a change following its September meeting: Home Mortgages:When the Fed adjusts the federal funds rate, it’s a signal to banks that its monetary policy is charting a new course. In the current business cycle, it would indicate the Fed wants to spark the economy to help create jobs because it’s okay with the rate of inflation. Home mortgage rates initially may adjust on Fed news, but they may continue to change depending on the Fed’s overall message. Credit Cards:Consumer loans also may respond to the Fed’s direction, but with things like credit cards, it’s best to see the Fed’s action as an overall trend rather than a big cliff. Banks can be expected to respond over time to remain competitive as other credit card companies adjust rates. However, your existing credit card interest rate may take a few billing cycles to reflect any Fed decision. Auto Loans:Auto buyers may benefit if the Fed makes an adjustment, but they already received some good news when Congress passed the One Big Beautiful Bill Act. Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.) Deduction also phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).1So car loan rates may adjust, butthe OBBB may offer some other incentives worth checking out. With the Federal Reserve meeting just around the corner, it’s natural to keep an eye on what might happen next and how it could affect the economy. While everyone waits to see if interest rates will change or what signals the Fed will send about inflation and growth, remember that staying calm and focused on your long-term goals is the best way forward. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. |
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Learn About Backup Withholding Backup withholding is when a taxpayer must withhold at the current rate of 24%, taken from any future payments, to help the IRS receive the tax due on this income; this can happen for many reasons, including failing to provide a correct taxpayer identification number (TIN) or failing to report or underreport interest and dividend income. Many types of payments are subject to backup withholding, and you can view the complete list on the IRS’ website, but some include:
Tip adapted from irs.gov *This tax tip is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals for more specific information. |
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Safeguarding Social Media It is important to remember that everyone's social media accounts are vulnerable to hacking, impersonation, and scams, which can lead to severe consequences including identity theft, loss of reputation, and financial damage. Additionally, attackers may use compromised accounts to spread malware or fraudulent ads, harming not only you but also your contacts and customers. It is therefore vital to always use strong, unique passwordsfor all your social media accounts, andenable two-factor authentication (2FA)when available to enhance your account security. In addition, it is important to implement the following: Adjust Privacy Settings:Review and customize the privacy settings on each social media platform to control who can see your posts, photos, and personal information. Make your accounts private whenever possible, limiting access to only trusted friends and family. Be Cautious with Personal Information: Avoid sharing sensitive personal details, such as your home address, phone number, or financial information. This protects you from potential identity theft and privacy breaches. Think Before Posting:Consider the long-term implications of what you share online. Remember that once something is posted, it can be difficult to remove completely. Ask yourself if you'd be comfortable with your posts being seen by employers or family members. Verify Connections:Be diligent about who you add as friends and followers. Only connect with people you know in real life to minimize the risk of encountering fake accounts or malicious actors. Monitor Your Accounts:Regularly check your accounts for unusual activity. This includes looking for any unauthorized posts or messages coming from your profile, which could indicate that your account has been hacked. Educate Yourself and Others: Stay informed about the latest social media trends and potential security threats. Engage in conversations about safe social media practices with your friends and family to foster a safe online environment. By implementing these strategies, you can significantly enhance your social media security and enjoy a safer online experience. |
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A girl has as many brothers as sisters, but each brother has only half as many brothers as sisters. How many brothers and sisters are there in the family? ___
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SEPTEMBER 2025 Newsletter: The Federal Reserve and Interest Rates
September 10, 2025