Federal Reserve Rate Cut

The following article originally appeared in Thann’s “The Equipped” Weekly Newsletter on September 25, 2024. For more information on Thann’s weekly email, click here.

For the first time since March 2020, the Federal Reserve lowered its target range for the federal funds rate. In simple terms, this is the rate at which commercial banks lend their federally held funds to each other. It also has an impact—to varying degrees—on the rates Americans pay for various forms of debt (i.e., credit cards and home mortgages). This week’s cut of 0.5% lowers the rate off what had been the highest rate since January 2001 (see a long term graph of the target range here).

Analysis and eternal perspective: “For where your treasure is, there your heart will be also” (Matt. 6:21).

Jesus talked about money—and how we should interact with it—with great frequency. It is so easy for the pursuit of wealth to displace Jesus as the highest object of our affection. We serve a good Father who wants to give us good gifts (Matt 7:11) and who owns the cattle on a thousand hills (Ps. 50:10), but whose ultimate desire and purpose for creating you is to be worshiped by you (Is. 43:21). Money so often serves as a competitor for our attention and affection, and it is in that vein Jesus warns us to be on guard.

As for interest rates, while they may impact on your decision-making around purchases, they should not alter your steadfast belief that everything—including your money—belongs to God (1 Chron. 29:11-14, Ps. 24:1, Job 41:11, Heb. 2:10, Deut. 10:14).

What does your checkbook say about your priorities? (Side note: Does anyone else still use a paper checkbook ledger? I do!) Everything—including your very being—belongs to God. What a liberating and invigorating reality!