Insights

Investor optimism over AI companies and expectations of interest rate cuts helped propel stocks last week.

The Federal Reserve has resumed rate cuts. As expected, the central bank lowered the benchmark rate by 0.25% in this month’s meeting, and the updated dot plot points to two additional rate cuts by year-end. Inflation remains sticky, but the Fed’s bigger worry is the labor market, which has clearly weakened and now demands attention.

Every August, we “Chart the Course” with a series of charts that highlight key current and historical trends in the economy and markets. We hope you find them both insightful and useful. Our regular commentary will resume in September.