The Fed Pumps the Brakes (Kind Of) While Netflix Splits Its Stock and Washington Falls Apart
The last week in finance has been a masterclass in “wait, what?”
Cautious Optimism Meets Real World Problems
As investors digested rate moves from the Federal Reserve, Netflix’s surprise stock-split party invite, stubborn inflation, and a government shutdown that has everybody squinting at their data trackers. If it feels a little uncertain out there, that’s because it absolutely is—so grab your coffee, and let’s cruise through the most impactful themes for market followers and finance fans this week.
Fed Cuts Rates, But Don’t Expect More Free Lunches
Why Did the Fed Cut Rates Again?
For the second month in a row, the Federal Reserve trimmed its benchmark interest rate by 25 basis points, lowering the fed funds range to 3.75%-4.00%. That’s the lowest since 2022, reflecting a rising chorus of worries over a slowing labor market (just 22,000 new jobs in August—wallflower numbers for the world’s biggest economy) and stubborn inflation still running at 3.0% year-over-year.
But before you uncork the champagne: Fed boss Jerome Powell threw a bucket of cold monetary policy water on the idea of a December rate cut, telling journalists it’s “not a foregone conclusion” and stressing that the central bank will now “wait for more evidence” before acting further. Translation: The Fed’s not ready to commit to a path of endless easy money—at least not with inflation showing little sign of getting back down to the 2% target.
Data Drama: Washington’s Shutdown Clouds the Fed’s Crystal Ball
Adding extra drama, the US government shutdown is putting key economic data on snooze. Agencies like the Bureau of Labor Statistics are mostly offline, meaning Powell and crew are navigating blind. Without updated reports on employment and inflation, monetary policy is starting to look more like educated guesswork than science.
The market responded with a mixture of shrugs and jitters: The Nasdaq dropped 1.2-1.3% on October 30, the S&P 500 fell over 0.5%, and the Dow declined 0.2%. Not catastrophic, but a sign investors are recalibrating for slower growth and less certainty around future rate cuts.
Netflix’s Stock Split: Making Shares Snackable Again
What’s Happening?