What the Fed’s rate cut means for your money, even if another one is not certain

It's another wild week in the world of personal finance with the U.S. Federal Reserve cutting its key interest-rate target by a quarter of a percentage point, despite limited economic data and a surprising sign that future cuts are not guaranteed. 

Looking ahead, "My Mother's Money" comes out on November 4. The book offers a financial roadmap for anyone thrust into the tricky role as a caregiver.

Please follow me on LinkedIn. You can reach me via onthemoney@thomsonreuters.com.

Every time Fed Chair Jerome Powell speaks, the market listens closely!

"When Powell speaks in a press conference, the market habitually reacts negatively for a day or two," says Stephen Kates, a certified financial planner and financial analyst at Bankrate.com, who expects four more rate cuts by the end of 2026.

Wondering what to do with your money now? 

After interviewing some of my favorite experts, my recommendation is to pay down credit card debt, or at least find lower interest-rate options.

"This is the time of year when people accumulate more debt than any other time of year," says Odysseas Papadimitriou, founder and chief executive officer of WalletHub. "Focus on your financial health rather than shopping excitement."

Here is my playbook for consumers in the current interest-rate environment.

Federal Reserve Chair Jerome Powell warned against betting on a December cut, and Aoifinn Devitt, chief investment officer at Moneta, told Reuters policy views could shift and align under a new Fed chair. Watch the interview here.

How much are you prepared to spend for caregiving? REUTERS/Shannon Stapleton

I'm at a stage in my life where many of my friends are dealing with aging parents. "My Mother's Money" by Beth Pinsker is the book I'm going to recommend to them.

It covers many important topics including estate planning, healthcare and taxes – but the chapter that caught my eye is focused on something I still need to figure out: long-term care insurance.

"You have homeowners insurance, you have car insurance, you have pet insurance," Pinsker says. "Your longevity should be insured."

Long-term care insurance covers expenses for nursing home or home care if you become incapacitated – most of which is not paid by Medicare and can be extremely expensive out of pocket. The average annual cost of a private room in a nursing home room is more than $127,000.

Pinsker's mom, who died in 2023 after multiple years of health complications, had a long-term care policy she tapped several times, covering round-the-clock private home care toward the end of her life.

While it is not cheap, long-term care coverage offers a peace-of-mind premium. "When my mom needed help, the thing that pushed her over the hurdle was the fact that she had this policy," Pinsker says. "If she had to pay out of pocket, she would have hesitated when it came to time to hire full-time caregivers."

It is important to note that the long-term care insurance landscape has changed dramatically in the past two decades, as insurers suffered huge losses and exited the business. Today, the best way to get coverage is to buy a hybrid life insurance policy which offers the ability to withdraw money for long-term care coverage, Pinsker says.

A hot dog, with a side of a government shutdown. REUTERS/Elizabeth Frantz

The U.S. government shutdown could cost the U.S. economy between $7 billion and $14 billion, shaving up to 2% from gross domestic product in the fourth quarter due to the lapse in government spending, according to the nonpartisan Congressional Budget Office.

About 750,000 federal workers have been furloughed since government funding ended on October 1, the start of the 2026 federal fiscal year. One of them is Isaac Stein, an attorney for the Internal Revenue Service. Check out this story about his side-hustle running a Washington hot dog cart. 

How is the government shutdown impacting you? Write to me at onthemoney@thomsonreuters.com.

In my last newsletter, I wrote about the rising cost of chocolate and its impact on Halloween. 

This week, I braved the crowds – and I mean crowds – at our local Costco to buy giant ten 90-ounce bags of chocolate as well as sugary treats. While warehouse clubs tend to offer the best per-piece value, the shopping experience was stressful.

No wonder some retailers are discounting the price of Halloween candy to boost sales.

All in, I spent about $200 for about 1,500 treats. Yep, we give out that much candy! 

How much did you end up spending on Halloween? Write to me at onthemoney@thomsonreuters.com. I read every message!

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