Last week’s economic reports for industrial production and the housing market beat predictions, while the Fed lowered rates as expected. This week, we’ll be monitoring important updates for consumer confidence and spending, new home sales, and durable goods orders.

I was just in North Carolina speaking to clients and got home after midnight. Frankly, it has been a slow morning! So, I thought I would provide some quick takes about points that don’t warrant a full post but are still worth talking about.

Yesterday, the FOMC decided to reduce the target range for the federal funds rate from 2–2.25 percent to 1.75–2 percent. As the headlines put it, the Fed cut rates by one-quarter of a percent. The headline version is certainly pithier, but the first version is more accurate—and gives a better sense of what actually happened: the Fed did not lower rates (contrary to the headlines), but it did lower the target range for its own lending operations.

Brad here. Today, we have a look at the Fed’s recent move into the cash markets from Nicholas Follett, manager of fixed income on our Investment Management and Research team. Enjoy!

The big news over the weekend was the drone attack on the main oil processing facility in Saudi Arabia. Apparently, the attack significantly affected the nation’s ability to deliver oil, knocking production down by half or more according to some estimates (more than 4 million barrels per day). As I write this, no one knows when the damage will be repaired or when Saudi production will return to normal.

Last week, we focused on inflation and the consumer, with the release of August’s reports on producer prices, consumer prices, retail sales, and consumer confidence. This week, we’ll see if home builder confidence remains steady and whether the Fed will cut rates.

As U.S. markets once again approach new highs—after all the drama and the three separate pullbacks last month—I think it makes sense to try to gain some perspective about what is really going on. Immediately after the markets hit new highs last time around, we had quite a bit of volatility. So, it’s reasonable to wonder what will happen next as we approach these highs once again.

I am working on my talk for Commonwealth’s upcoming National Conference, all about interest rates in the new world. The tagline is going to be “Less Than Zero.” Yesterday, I got an endorsement (sort of) from the president, who tweeted that the Fed should lower rates to zero or even below. Clearly, I got the hot topic right this year!

Today I appeared on CNBC’s Power Lunch to discuss this year’s IPO market. Listen in to learn more.

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!