What's Happening

Economy

The Federal Reserve Finally Did It and It Went Big

What's going on: After four years of playing with our feelings (and credit cards), the Federal Reserve cut interest rates Wednesday by half a percentage point. Interest rates are now down to about 4.9% after sitting at a 23-year high. While that may seem like a small drop, it’s a significant move for the Fed, which rarely makes cuts this large. The decision signals the central bank’s confidence that its fight against inflation is on track, but it also wants to avoid slowing down economic growth and the job market. The Fed’s goal? Making a “soft landing,” which translates to getting the economy back on track without tipping it into a recession. That’s no easy feat.

What it means: Borrowing costs are set to go down, affecting everything from auto loans to credit cards. Mortgage rates have already dropped in anticipation of the cuts, reaching their lowest level in over a year. However, according to The Wall Street Journal, first-time homebuyers shouldn’t get their hopes up — while the rate cut might slightly lower payments, it won’t make a huge difference overall. In the grand scheme of things, rates are still relatively high, and the cut doesn’t necessarily make it easier to get approved for certain loans. Additionally, lower interest rates will affect high-yield savings accounts, so it might be time to consider other options, like CDs or Treasury bonds. Keep in mind, it will take time before the US economy and consumers feel the full impact of these cuts. The Fed is expected to continue trimming rates, possibly by another half a percentage point by the end of the year. We did it, Jerome (for now).

Related: What Is Going On With the Labor Market? (Axios)

US News

Kentucky Bans Conversion Therapy While Other States Lag Behind

What's going on: Yesterday, Kentucky Gov. Andy Beshear (D) signed an executive order banning the use of conversion therapy on minors. The practice, which aims to change a person’s sexual or gender identity, has been discredited by both the American Medical Association and the American Psychiatric Association. The governor issued the executive order after similar efforts to ban the practice failed in the Republican-led state legislature. The order prohibits the use of state or federal funds for conversion therapy on minors and grants licensing boards the authority to discipline anyone who conducts it. A socially conservative group called the ban an “unlawful action” that infringes on parents’ rights and “suppresses religious expression” and might take legal action.

What it means: By no means is Kentucky an outlier when it comes to conversion therapy. The practice remains legal in more than 20 states, despite the common belief that it has been widely banned. One study found that more than 10% of people who aren’t heterosexual or cisgender have undergone conversion therapy. The Trevor Project reported that as many as 15% of LGBTQIA+ youth were either subjected to or threatened with conversion therapy in 2023. Medical associations warn that the practice can increase the risk of suicide, depression, and low self-esteem. Meanwhile, a historic number of anti-LGBTQIA+ bills continue to be introduced in state legislatures. The American Civil Liberties Union (ACLU) has tracked 530 such measures this year.

Related: Did Disney Put “Inside Out 2” Through Conversion Therapy? (Vulture)

Sports

Portland, It's Time To Take Off the Warm-Ups

What's going on: On the rebound, the WNBA is returning to Portland. The basketball league is adding its 15th franchise to the West Coast city starting in 2026. In some ways, it’s a homecoming — in 2000, the Portland Fire entered the WNBA, but folded just two years later amid changes to the league. A little backstory: In 2002, the league switched from a central to individual ownership model, ultimately benefiting team owners who now save millions in taxes through their franchises. The new Portland squad will be owned by RAJ Sports, the same group behind the Portland Thorns women’s soccer team and the NBA’s Sacramento Kings. The new team’s name hasn’t been decided, but the owners are seeking input from the community. Our vote? “The Oregon Trail(blazers)”...minus the dysentery.

What it means: This addition highlights the rapid growth of women’s sports, particularly with the WNBA. In just the first five games this year, the league’s viewership surged by 226% compared to last year’s average. And Portland isn’t the only new team. The WNBA recently added the Golden State Valkyries, who’ll be tipping off for the first time in 2025, and a team in Toronto. The league also aims to add one more franchise by at least 2028, with plans for further expansion. Swish, indeed.

Related: Meanwhile, This ‘Fashion Accessory’ Is a Must-Have on NFL Sidelines (WSJ Gift Link)