Author: Money Mechanics

Key Takeaways If you’re socking away savings at Chase, Bank of America, or Wells Fargo, you’re earning virtually nothing in interest. But it doesn’t have to be that way—dozens of small and medium-sized banks pay rates of 4%-5% on their high-yield savings accounts. Worried a smaller bank isn’t as safe? FDIC insurance protects deposits at every bank, no matter the size. On every $10,000, a 4.50% savings account pays $450 a year—versus just $1 at the three biggest banks. The full article continues below these offers from our partners. Big Banks Feel Familiar, but Smaller FDIC Banks Are Just as…

Key Takeaways New grads face a challenging job market, with an unemployment rate higher than the overall workforce. Chris Martin, a lead researcher at Glassdoor, suggests that new grads stay flexible on roles and locations and tap their wider network for advice and referrals. He recommends using artificial intelligence (AI) for some finishing touches, but not using a large language model to draft your resume or cover letter—you want to stand out in the application process. New college graduates are having a tough time landing a job, and using AI to game the application process might not improve your chances…

Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2025 (April, May, and June), according to the advance estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.5 percent.The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports. For more information, refer to the “Technical Notes” below.Compared to the first quarter, the upturn…

Over the past two years, one of the most interesting healthcare companies to go public is none other than Tempus AI (NASDAQ: TEM). In a world where healthcare IPOs are typically dominated by biotech companies that generate little to no revenue, Tempus stands out. The firm has posted sales of approximately $952 million over the last twelve months and has made strong improvements in profitability. The stock has also been a winner for shareholders. As of the Aug. 12 close, Tempus has provided a return of 89% in 2025, nearly delivering on the double-bagger potential forecasted in December 2024. Tempus recently…

Global money markets are closely watching Fed Chairman Jerome at the Jackson Hole Symposium this week. Recently, expectations about the Fed’s monetary policy have changed quickly. The data from July made it less likely for significant , and expectations for the September meeting have become more focused. If Powell speaks cautiously, markets think the US dollar might strengthen against other major currencies. This is particularly true because the market still expects significant rate cuts, and careful messaging could boost the . How Can the Fed Move on the Inflation-Employment Dilemma? The US economy has been sending mixed signals lately. On…

The Ladder, the Curve, and the Challenge Laddering municipal bonds is a time-tested strategy that has helped investors generate predictable tax-free income for decades. But what happens when the yield curve flattens — or worse, inverts? Suddenly, the fundamental assumption behind traditional laddering — that longer maturities reward you with higher yields — gets turned on its head. For sophisticated muni investors, these curve environments present both challenges and opportunities. The old playbook of building 10-year ladders with steady maturity spacing may no longer make sense when 2-year munis yield the same as 10-year bonds, or when short-term rates exceed…

Federal Reserve Chairman Jerome Powell delivered his semiannual Monetary Policy Report to Congress on June 24th and to the Senate Banking Committee on June 25th.Powell noted that U.S. real GDP expanded roughly 2.5% over the past year, supported by resilient consumer spending and a still-solid labor market. Payroll growth averaged about 124,000 jobs per month in the first five months of 2025—slower than the pace seen during the post-pandemic boom but still consistent with a gradually cooling economy.Inflation, however, remains somewhat above target. The Fed’s preferred gauge, core PCE inflation, is running near 2.6%, with overall personal consumption expenditures (PCE)…

The first tax filing after a divorce demands empathy and meticulous attention to detail. For many, understanding new filing statuses, child-related credits, support considerations, and the impact of asset division is a tangible step toward financial independence—one that can either build confidence or trigger considerable stress. Here’s how I guide clients through this important shift. Key Takeaways Your filing status after divorce can significantly affect taxes, deductions, and credits.Child-related tax benefits require careful coordination, especially with IRS Form 8332, which only transfers the Child Tax Credit.Alimony and child support are taxed differently, with key rule changes for divorces finalized in…

In-brief analysis August 4, 2025 In our recently published Annual Energy Outlook 2025 (AEO2025), we introduced our new Hydrogen Market Module (HMM), which allows us to model the market for hydrogen in the coming decades. In most AEO2025 cases, we project hydrogen production will increase by around 80% in 2050 compared with 2024 and most hydrogen (H2) will be produced from natural gas in a process known as steam methane reforming (SMR). In most cases, we project less than 1% of hydrogen will be produced via electrolyzers, which use electricity to produce hydrogen from water,…

On Wednesday, July 30, 2025, I dissented from the Federal Open Market Committee’s (FOMC) decision to maintain the target range for the federal funds rate at its current level. As the Committee’s post-meeting statement notes, I preferred to lower the target range for the federal funds rate by 25 basis points.1 Inflation has moved considerably closer to our target, after excluding temporary effects from tariffs, and the labor market remains near full employment. With economic growth slowing this year and signs of a less dynamic labor market, I saw it as appropriate to begin gradually moving our moderately restrictive policy…