11/10/2025 Another Rate Cut for the Books

With inflation statistics still not being published due to the Federal government shutdown, though the Senate now appears to have a workable deal on the table, the Federal Reserve Board has made a judgment call to cut rates further from 4.00-4.25% down to 3.75-4.00%.

This quarter-point rate target cut may encourage more borrowing in an economy that has uncertain inflationary prospects, the results of which may vary. To this effect, Fed Reserve Chair Jay Powell is maintaining his rhetoric that December rate cuts are not set in stone, and considerations other than the health of the economy for high-income Americans may be a driving factor in rate decisions going forward. This messaging by Powell is significant because of the apparent fracturing of the U.S. economy into a high-income economy whereby individuals and families are more than willing to spend as they view their economic prospects improving, and a low-income economy whereby individuals are much more pessimistic about the economy and are much less willing to spend down their savings.

Have questions? Ask a financial advisor at A.G. Advisory Firm, LLC.

Please also share if you liked the content, and write to info@agadvisoryfirm.com with your commentary or any suggestions. I look forward to hearing from you.

References:

1. https://www.cnbc.com/2025/10/29/fed-rate-decision-october-2025.html

2. https://www.ft.com/content/68755ca1-48f9-49e2-ab54-a1b35edf6e9c

3. https://www.reuters.com/business/fed-in-fog-it-heads-toward-another-rate-cut-2025-10-29/

4. https://www.cnbc.com/2025/10/14/theres-a-shocking-disparity-between-how-high-income-and-low-income-earners-feel-about-the-economy.html

A.G. Advisory Firm, LLC (“A.G. Advisory”) is a Registered Investment Adviser.

This content is intended to provide general information about A.G. Advisory. It is not intended to offer or deliver investment advice in any way. Information regarding investment services are provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

Past performance is no guarantee of future returns.

Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable.

Additional Important Disclosures may be found in the A.G. Advisory Form ADV Part 2A. For a copy, please Contact Us.