Category Basics

In 2025, the U.S. economy is growing mainly because of how much the richest Americans are spending, while most other people are just getting by. According to Moody’s and data from the Federal Reserve, people in the bottom 80% of income—those earning less than $175,000 a year—haven’t seen their money go any further than it did after the pandemic. They're spending more, but only because prices have gone up. Meanwhile, the wealthiest 20% are spending a lot more than before, helping keep the economy running. This is risky because if high-income earners cut back, the entire economy could slow down, especially with inflation staying high and interest rates uncertain.

On September 17, 2025, the Federal Reserve faces a big decision that could shape the U.S. economy for the rest of the year. With signs of a weakening job market and low inflation, many experts believe the Fed will cut interest rates by 0.25%. This would make borrowing cheaper for businesses and consumers, possibly helping the economy grow. However, President Trump is adding pressure, saying the Fed should act faster to support the economy. Despite this, the Fed insists it makes decisions based on data, not politics. This situation highlights the tension between the government and the Fed, which is supposed to remain independent.

As of mid-September 2025, the Federal Reserve is considering lowering interest rates for the first time in nearly a year, even though inflation remains higher than its goal. The Consumer Price Index (CPI) rose 2.9% over the past year, and the Fed’s preferred inflation measure, the PCE index, is also above the target of 2%. At the same time, the job market is showing signs of stress, with slower hiring and more people expecting unemployment to rise. The Fed is trying to balance two important goals: keeping prices stable and making sure people have jobs. Lowering interest rates could help boost the economy and support jobs, but it might also risk making inflation worse. Mortgage rates have stayed steady so far, as markets wait to see what the Fed decides.

In August 2025, U.S. inflation rose to 2.9%, the highest it's been since early in the year, mainly due to rising housing costs and steady increases in other essentials. Even though prices are going up, the Federal Reserve is expected to cut interest rates soon. This may seem confusing, but the reason is that the overall economy is slowing down and facing challenges from global trade issues. Lower interest rates are meant to help businesses and consumers by making borrowing cheaper. However, some everyday costs, like mortgage refinancing, are still expensive, which makes it harder for families to save or spend more freely. These shifts in the economy affect real-life financial choices for many Americans.

In 2025, many Americans are rethinking where they live and how they spend money due to rising inflation and economic uncertainty. A growing number of people are making **strategic moves** to new cities or states in search of lower costs and a better lifestyle. However, moving isn't just about cheaper housing—people also need to consider things like taxes, job opportunities, mental health, and whether a new neighborhood really fits their life. New services like **City Shift Finance** help by offering detailed information to make smarter decisions. Still, not all moves turn out well. In fact, **about 75% of people who recently moved say they regret it**, showing how hard it can be to match financial goals with personal happiness.

In September 2025, the Federal Reserve is expected to lower interest rates by 0.25%, signaling a change in how it plans to support the U.S. economy. This move comes as inflation—while still higher than the Fed's ideal—has begun to cool, with headline inflation at 2.9% and core inflation at 3.1%. At the same time, the job market is slowing, and global uncertainties, like conflicts and economic slowdowns in other countries, are making things more unpredictable. By cutting rates, the Fed hopes to make borrowing cheaper for consumers and businesses, which can boost spending and investment. Central banks in other major countries are considering similar steps as they deal with slowdowns and inflation of their own.