'The specter of politics' hangs over Fed interest rate meeting

Federal Reserve & Interest Rates - The Federal Reserve is expected to cut interest rates by 25 basis points, marking the first cut in about a year [5] - The independence of the Federal Reserve is being challenged, particularly during the Trump term [6][8] - Concerns exist regarding political influence on the Fed, potentially impacting its decision-making process [11] - The Fed's actions significantly influence various aspects of the economy, including mortgage rates, small business loans, and grocery prices [12] - The market is closely watching the Fed's guidance on future rate cuts and the overall economic outlook [21] Economic Disparity & Retail Sales - Retail sales beat expectations in August, but spending is largely driven by the top 10% of earners [13][15] - The top 10% of earners accounted for 50% of spending in the second quarter of the year [15] - The top 10% of earners own about 90% of the stocks, benefiting significantly from stock market gains [17] - The bottom 90% are struggling with wage growth slowing down while prices increase [16] Housing Market - The average 30-year fixed-rate mortgage remains high, around 613%, similar to a year ago [22] - High mortgage rates are freezing the housing market, as people are reluctant to sell due to lower existing mortgage rates [22] TikTok Deal - A deal involving Donald Trump and US investors is nearing completion to create a new US entity to operate TikTok [24] - Concerns remain about the Chinese algorithm continuing to drive TikTok's operations [25]