RIP SAVE: Popular Student Loan Repayment Plan Axed

Welcome to MoneyNerd — your weekly shortcut to how the latest news and trends shape your financial life. 

In your inbox every week: 

MoneyNerd is here to keep you informed, confident and ready for whatever the economy throws your way.

The Federal Reserve cut rates for the third time this year, bringing the federal funds rate to 3.50% to 3.75%. 

The Federal Open Market Committee’s (FOMC) decision arrives on the heels of a federal government shutdown that delayed the release of key economic data. Three FOMC members opposed the cut. 

During a press conference following the Fed’s decision, Chair Jerome Powell acknowledged the growing disagreement among policymakers over how aggressively the Fed should move. He added that tension within the Fed’s dual mandate — maximizing employment while maintaining price stability — has led to differences in approach. 

“You’ve got one tool — you can’t do two things at once,” said Powell. 

Since September 2024, the Fed has cut rates by 175 basis points, which Powell says puts the FOMC “in a good place” to wait and see how the economic picture unfolds. 

The Fed is expected to have more data to go on at its meeting next month. 

The latest 25 basis point cut is likely to mean lower interest on loans when lenders set new rates. Banks tend to pass those savings along to consumers by lowering rates on credit cards, auto loans, mortgages and personal loans. Refinancing rates also tend to fall, creating opportunity for borrowers to save money on existing loans.  

For savers, the cut is likely to mean lower yields on savings accounts, CDs and interest-bearing checking accounts. 

Rate cuts won’t translate to lower rates on consumer products immediately, and it may take weeks or months for lenders to adjust. 

“Lower interest rates across the economy can provide a bit of relief to those who carry debt with adjustable rates or those considering financing a purchase or business expansion,” says Elizabeth Renter, NerdWallet’s senior economist. “It also makes the decision to hire an easier one for employers, which will come as good news to people in the job market.”

As far as future rate cuts, the FOMC’s “dot plot” — reflecting where members expect rates to sit in the future — predicts one more quarter point cut by the end of 2026. The futures market’s CME Group FedWatch tool suggests that the Fed is most likely to pause at its next meeting Jan. 27-28. 

Read more about the FOMC’s decision at its December meeting. 

Learn more about the decision and how it will affect you. And if you want to go deeper into how the rate cut will impact specific financial products, look no further. Our team of writers has you covered:

- Anna Helhoski

This year, an overwhelming majority (84%) of wholesale Christmas tree sellers said they didn’t plan to raise prices on their firs, spruces and pines, according to a report by the Real Christmas Tree Board, released on Sept. 18. Instead, the sellers said they planned to absorb any other additional higher costs — like logistics or labor — rather than pass them onto consumers. 

And fortunately for sellers and buyers alike, Canadian-produced real Christmas trees are exempt from tariffs because they’re protected as an agricultural commodity under the United States-Mexico-Canada Agreement.

Still, retail prices are bound to vary. 

I live in New York City where most everything — including Christmas trees — tends to be pricey compared to the rest of the country. One tree seller in my neighborhood was charging $225 for a 7-foot Fraser fir and $285 for 7-foot Nordmann and Noble firs. The lowest-cost option was a 3-foot tabletop Balsam fir for $59, while the priciest were 9-foot Nordmann and Noble firs for $475.

It made me curious what my colleagues are paying for trees in their neck of the woods. Here’s what they had to say. 

Live Christmas trees:

Artificial Christmas trees:

- A.H.

My husband and I own that house. You know, the house in the neighborhood that everyone drives by to look at the thousands of Christmas lights. 

We’ve built up a reputation for our snowman photo op, lighted porch and 9-foot inflatable horse. (And, not to brag, but we won the neighborhood’s Christmas light competition the year we moved in.)

Christmas lights are bright and shiny, but their associated electric bill isn’t always so pretty. Here are my top tips for saving money on Christmas lights — even if your house looks like Clark Griswold lives there:

Another smart move? If you want to achieve pro Christmas light status, look into a generator. It’s an upfront cost, but plugging your Christmas lights into a generator can save you from overloading your home’s power outlets.

Learn more about why electric costs are rising.

- Courtney Neidel

It’s Christmastime, and prices are berserk. 

Here are nine silly stocking stuffers to make ‘em smirk.

One idea — a blanket that looks yummy enough to eat.

Another is a headlamp so you can see in front of your feet.

There’s also lip balm with real soda taste.

Our list has nine ideas that aren’t a total waste.

Let’s be honest. The pressure to spend is high during the holidays. Consumers will shell out around $890 per person on average on all the holiday stuff like gifts and decorations this year, according to the National Retail Federation. You, however, can err on the side of humor to save some money and extend the joy of the holiday morning. 

Our nine ideas are fun and relatively cheap. But act now before it’s too late. Because how will you live with yourself if your yodeling pickle doesn’t arrive in time? (OK, the pickle is kind of a waste.) 

- Thomas Tindall

Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.

Was this newsletter forwarded to you? Subscribe here.