Interest Rate Policy - The Federal Reserve announced its first interest rate cut of the year, lowering its benchmark rate by 0.25 percentage point to a range of 4% to 4.25% [1] - The board voted 11 to 1 in favor of the rate cut, signaling expectations for two more cuts before year-end [1] - One governor favored a larger 0.5 percentage point cut [2] - The Fed's interest rate projections have fluctuated based on factors like trade tensions [4] Labor Market - The Fed is shifting its focus from inflation to the softening jobs market [5] - Job creation has slowed, with the last four months averaging only 27,000 jobs per month [6] - There are now more people looking for jobs than there are jobs available, a sign of a weakening labor market [9][10] - 26% of unemployed individuals have been unemployed for 6 months or more, a level last seen in 2016 [12] - Young college graduates are facing a tough hiring season [13] Inflation and Growth - The Fed is willing to accept slightly higher inflation to prioritize jobs [17] - Inflation is projected to gradually decline but not reach the 2% target until 2028 [16] - Growth is expected to remain below the levels of 2023 and 2024, projecting around 1.5% going forward to 2028 [18][19]

Hiring Trends - The United States is experiencing a slowdown in new job creation [1] - Younger individuals face challenges in securing software development and marketing positions, potentially due to AI augmentation or replacement [1] Economic Policy & Impact - Businesses are navigating rapidly evolving federal policies related to taxes, trade, and immigration [1] - The Federal Reserve has reduced short-term lending rates to stimulate economic growth, despite inflation exceeding ideal levels [1]

Bring in show music, please. >> Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod, China banning tech companies from buying Nvidia chips. Speaker of the House Mike Johnson on the political implications. >> We're in a race with them. I I it's a very uh I I think counterproductive development for what they they've announced about Nvidia, and we've got to work through that. And it's Fed Day, the interest rate decision we've been waiting for. >> I think we need rates to come down today. I think that's obv ...

Economic Overview - The housing market is cooling down due to high interest rates, which lead to elevated mortgage rates [1] Housing Starts and Building Permits - August Housing Starts decreased to 1.307 million seasonally adjusted annualized units, the lowest since May and down from 1.429 million in July [2] - Building Permits also fell to 1.312 million, indicating a softening in the forward-looking housing starts market [5] Single-family vs Multi-family Homebuilding - Single-family homebuilding declined by 7% month over month and 12% year over year, while multi-family units decreased by 11% month over month but increased by 15% year over year [3] Mortgage Rates and Homebuyer Sentiment - 30-year fixed mortgage rates were around 6.5% at the time of the survey, currently down to approximately 6.13%, but still considered high for average homebuyers [4] - Homebuilders are in a "wait and see" mode due to affordability issues, with only luxury homebuilder Toll Brothers showing a strong outlook [6] Fed Interest Rate Expectations - The Federal Reserve is expected to cut interest rates for the first time in 2025, with a likely 25 basis-point cut [7][8] - Fed Chair Jerome Powell's press conference will be crucial for insights on future rate cuts [9] Fed's Balance Sheet and Housing Market - The Fed has been unloading assets from its balance sheet, including mortgage-based securities, which may be discussed in relation to supporting the housing market [10]

LONDON (AP) — Inflation in the U.K. held steady at 3.8% in the year to August, official figures showed Wednesday, a day before the Bank of England is widely expected to keep interest rates on hold. The Office for National Statistics found food and drink prices rose for the fifth month in a row, but airfares fell sharply after a big spike in July. Though inflation remains nearly double the Bank of England's target rate of 2%, most economists had anticipated a modest increase in August. Stubbornly high in ...

Core Insights - Gold prices experienced a decline of nearly 1%, retreating from a record high of $3,707.40 per ounce, settling at $3,658.25 per ounce, despite a 6% increase so far this month [1][4] - The Federal Reserve cut interest rates by 0.25 percentage points and indicated a steady reduction in borrowing costs for the remainder of the year, leading to profit-taking in the gold market [2][3] - Analysts suggest that gold's price surge this year is supported by central bank purchases, diversification from the U.S. dollar, safe-haven demand amid geopolitical tensions, and a weaker dollar, with a 39% increase in gold prices year-to-date [4] Market Reactions - Spot silver decreased by 2.4% to $41.51 per ounce, platinum fell by 2.2% to $1,360, and palladium dropped by 2.6% to $1,145.44, indicating a broader decline in precious metals [5]

Jerome Powell has the opportunity to do the right thing tomorrow and cut interest rates by 50 basis points.Let’s see if he does it. ...

[Music] [Music] Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cra.Other people, my friends. I'm just trying to make you a little money. My job is not just to entertain, but to teach, put in context.So, call me at 1800 743 CNBC. Tweet me at Jim Kramer. Not that long ago, pretty much everybody assumed that the next non- tech stock to cross the trillion dollar threshold would be the stock of Eli Lilly.Why not. They developed a weight loss and diabetes wonder drug with incredible prospects. Oh, but this mar ...

Market Trends & Fed Policy - The bond market indicates expectations of Federal Reserve (Fed) rate cuts due to a potentially weakening labor market and slowing economy [2] - Equity market rallies despite bond yields decreasing, driven by anticipation of Fed rate cuts rather than recession fears [3] - Market anticipates a 25 basis point rate cut from the Fed [4] Economic Indicators - Retail sales significantly exceeded consensus, growing three times higher, indicating strong consumer spending [5] - Corporate earnings surpassed expectations, coming in at 12% compared to expectations slightly under 5% [5] - Signs of a weakening labor market are emerging, with more people seeking jobs than available positions [8] - Unemployment rate, while historically low at 46%, is showing signs of increase, warranting Fed attention [8] Company Performance & Investment - MAG 7 companies are expected to spend $500 billion in capital expenditures (capex) over the next two years, acting as a stimulus, particularly for tech stocks [6] - MAG 7 stocks have increased by 50% since April lows [7] - The S&P is significantly driven by a bundle of seven securities, creating potential overexposure risk in client portfolios [10] - The Russell 2000 outperformed the S&P by three times in August [13] Geopolitical & Trade Risks - Trade talks with China and geopolitical risks introduce uncertainties [11] - Tariffs are currently at 10% but could rise to around 18% after pauses end [12]

Group 1: Valuation and Market Performance - The current trading valuation for banks is around two times tangible book value, which is higher than recent historical levels, but this is not seen as a concern due to potential for continued outperformance [1][2] - The cyclical high for banks was noted at 2.2 times tangible book value in January 2018, indicating that there is still room for growth in valuations [2][3] - There is a significant discrepancy in performance among banks, with Citigroup up 40% this year compared to Bank of America and Wells Fargo, which are up 14% [7] Group 2: Regulatory Environment - The regulatory outlook for banks is considered the best in decades, with expectations of increased profitability leading to higher valuations [3] - Recent changes in regulatory leadership suggest a less onerous approach, with new proposals expected to be more favorable for large banks [4][5] - The new Fed chair is anticipated to support economic growth, which could benefit banks through lower interest rates without triggering high inflation [6] Group 3: Interest Rate Environment - The current interest rate environment is favorable for banks, with potential Fed cuts of 50 to 75 basis points expected in the next three to six months [10] - A steep yield curve with a Fed funds rate above 3% has not been seen in over 20 years, allowing banks to benefit from low-cost deposits while lending at higher rates [11] Group 4: Company-Specific Insights - Citigroup is viewed as a turnaround story, successfully exiting unprofitable businesses and focusing on profitability, which has made it more attractive to investors [8] - Goldman Sachs is performing well in capital markets, benefiting from increased IPOs and merger and acquisition activity, indicating a positive outlook for the company [12]