Weekly Review 8-22-25
08/22/2025Markets began last week relatively quietly, as the S&P 500 took a breather after hitting all-time highs the week prior. The calm shifted midweek when the Federal Reserve released minutes from its July meeting, showing that most policymakers felt it was still too early to begin cutting interest rates1. That narrative was chucked Friday when Jerome Powell suggesting the Fed may in fact be weighing rate cuts2.
Powell highlighted recent signs of labor market weakness and said that balance of risk to labor markets vs inflation may be shifting2. His comments sent stocks soaring, wiping away earlier declines and leaving markets up for the week (FactSet).
On the international front, Canada announced that it was removing many of the retaliatory tariffs it imposed five months ago on U.S. imports. Still, its 25% duties on U.S. autos, steel, and aluminum remain in place3. All thought that’s no resolution, it’s encouraging to see negotiations continue.
Looking Ahead
On Thursday, the second estimate of second-quarter GDP will be released. These revisions have been volatile recently, so investors will be watching carefully for any meaningful changes. Then on Friday, the Personal Consumption Expenditures (PCE) Index for July is due. This is the Fed’s preferred inflation gauge. June’s release showed annual PCE inflation at 2.6%, the highest in four months, so another uptick could weigh heavily on Fed policy discussions (bea.gov).
Enjoy your week,
Jeremy Raffer, MBA
Director & Wealth Manager
Author “Financial Planning for Widows”
m. 201-747-2705
w. rafferwealthmanagement.com
e. [email protected]
Steward Partners
115 W. Century Rd, Suite 145
Paramus, NJ 07652
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1https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20250730.pdf
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