Weekly Talking Points for Financial Advisors (11/3/25)

Read the highlights of this week's commentary from Helios:

• The Federal Reserve delivered a second consecutive quarter-point rate cut, lowering the benchmark rate to 3.75%-4%, the lowest since 2022. Chair Powell said a December cut remains uncertain, as the government shutdown has halted critical data releases, including jobs reports and retail sales. The Congressional Budget Office estimates the shutdown could cost the economy $7-14 billion and trim 1-2 percentage points from Q4 GDP growth.
• Presidents Trump and Xi Jinping reached a one-year trade ceasefire, easing market tensions after months of escalating tariffs. Trump will reduce tariffs on Chinese goods from 57% to 47%, while China pledged to resume soybean purchases, delay rare earth export controls, and curb fentanyl production. Analysts said the deal offered short-term relief but left deeper trade issues unresolved.
• After five months of declines, U.S. home prices showed only limited improvement in August. The S&P Case-Shiller National Index rose 0.2%, while its 1.5% annual gain lagged inflation, marking a fourth month of real housing wealth erosion. However, the Federal Housing Finance Agency House Price Index rose 0.4% in August and 2.3% annually, although regional gaps widened, with Pacific markets weakening and Middle Atlantic prices leading the gains.

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