Core Insights - Average FICO credit scores have decreased by two points this year, marking the largest decline since 2009, with rising delinquencies in car loans, personal loans, and credit cards [1] - Default rates are increasing but are not currently at concerning levels; monitoring continues [2] - A single rate cut may not have an immediate visible effect, but a strong economy and labor market are the long-term goals [3] Economic Conditions - The recent rate cut occurs while the stock market is near all-time highs, raising concerns about potential overheating and asset bubbles [4] - The focus remains on achieving maximum employment and price stability, with careful monitoring of financial stability [5] - Households and banks are generally in good financial shape, although lower-income individuals are experiencing pressure [5][6]