Four Personal Finance Trends to Watch

The CPI rose by 2.4 percent for the month of September, which was the smallest change going all the way back to February 2021. The core CPI, which excludes volatile food and energy costs, remains, however, stubbornly high at 3.3 percent. The downward trend is improving as we close in on the Federal Reserve’s inflation target of 2 percent.
Most economists believe the country can avoid recession. The Federal Reserve slashed its federal funds short-term interest rate, for the first time in four years, in September, and on Nov. 7 Fed Chair Jerome Powell announced another rate cut of 25 basis points.
The reason given for increasing rates is a resurgence in concerns that we may be facing an economic downturn. This view is incongruous and inconsistent with the views of most economists, for as we noted earlier, the economic data seem to indicate continued strength. Either the long-term bond investors will turn out to be correct or the majority of the economists, only time will tell.
The fed funds rate is a short-term rate that can directly affect other short-term loan rates. But longer-term rates, such as that of the 10-year U.S. Treasury, and the mortgage rates are not directly controlled by Fed’s interest-rate policy. If the 10-year Treasury rate is increasing because of perceived investor risk, that rate is more directly tied to—and influencing—mortgage loan rates.
Below are the new federal income tax brackets for 2025:
In 2025, we can expect to pay more for imports, the result of new and higher tariffs. We may also see taxes on tips and Social Security go away, and a lot of changes aimed at streamlining government and making it more efficient.