The Federal Reserve raised the federal funds rate 25 basis points yesterday to 3.75%–4.00%, its first rate increase since 2023. The unanimous decision reflects a shift in priorities: with economic activity and consumer spending remaining resilient, the Fed is placing greater emphasis on containing inflation, which remains above its 2% objective.
Affordability Squeeze
Although inflation is often discussed as a single number, households experience it differently because spending patterns vary by income, age, lifestyle and financial circumstances. Those differences help explain both consumer behavior and the gap between economic data and household sentiment.
Market Update: September 1, 2026
August reinforced the theme that the economy remains resilient, corporate earnings continue to show strength, and investors must navigate a more complicated interest-rate and valuation environment amid elevated geopolitical risks.
Get Real
The tech sector once again reminded investors that even exceptional companies are not immune to changing financial conditions.
Data
The Federal Reserve’s recent policy decisions continue to reflect the delicate balance between its dual mandate of promoting maximum employment and maintaining price stability.
Context
Successful investing often involves understanding how economic growth, inflation, Fed policy, bond yields, and corporate earnings interact.
Feelings
Expectations and sentiment act as the invisible inner framework shaping our emotional experiences, often setting the stage for how we feel before events even unfold.
Dire Straits
The Strait of Hormuz has long stood at the center of global energy and trade, a narrow maritime corridor whose importance has only deepened over time.
Disruptions
Geopolitical disruptions often spill over into market sentiment if not outright trends. Changes from past periods of disruption may provide some insights into future investment strategy improvements.
Milestones
Financial markets witnessed another milestone as the Dow Jones Industrial Average (“DJIA”) crossed 50,000 for the first time in the DJIA’s 129-year history.