Powel Signals a Change in Fed Policy, What It Means To Your Finances

The long-awaited Jackson Hole speech by Federal Reserve Chairman Powell gave the markets the news investors were hoping to hear. In the speech, Chairman Powell noted weakness in the US labor market and subdued inflation more broadly. The Fed is concerned about the risk of tariffs creating a one-time increase in the prices of some goods, but may err on the side of caution by lowering interest rates to promote economic growth and full employment due to the belief that the inflationary impacts may be contained..Of the four inputs to economic growth: land, labor, capital, and productivity, the US is facing some constraints and is counting on an unproven opportunity. The reduction in the labor force due to decreased immigration and the constraints to capital from high interest rates may stifle growth. Land is abundant but less important. Therefore, productivity through technological innovation, such as AI, may become the most important..To follow up on some of the tax law changes in the recently passed tax and budget bill, there are a number of changes to the tax deductibility of charitable contributions taking effect in 2026. One change is that it will be easier for some taxpayers to deduct small amounts that they contribute to charity. However, higher-income taxpayers may have their deduction limited, which could offset any additional benefit. .Plus, a look at the Planned Solutions Incorporated Office Bulletin Board -We are now taking registrations for our annual charity golf tournament. .The Harlan D. Wood and Debbie Druivenga Memorial Cancer Charity Golf Tournament.Date: Friday, October 10, 2025Location: Rancho Murieta Country Club – North Course7000 Alameda DriveRancho Murieta, CA 95683 .Time: 1:00 pm shotgun start (boxed lunch included), 5:30 pm reception. .To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast), please e-mail ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠ .Chase Armer's book- Financial Planning Insights is now available at: ⁠⁠⁠⁠⁠⁠https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279⁠⁠ ⁠ .Planned Solutions, Inc.ADDRESS: 1130 Iron Point Road, Suite 170 Folsom, CA 95630 PHONE: (916) 361-0100 or (800) 750-2111E-MAIL: ⁠[email protected]⁠ FAX: (916) 361-0191WEBSITE:www.PlannedSolutions.com