A rate cut would reduce rates on credit cards, home equity lines and personal loans

By Mark Huffman of ConsumerAffairs

• Fed cuts expectedbut size debated: Markets almost fully price in a 0.25 percentage-point rate cut at the Federal Reserve's September 1617 meeting, though a larger 50-bp cut now holds about a 14% probability.

• Reason for the shift: A weak August jobs reportwith only 22,000 positions added and rising unemploymenthas shifted the Feds focus toward supporting employment, even amid inflation concerns.

• Consumer impact: If the Fed cuts rates, consumers could see relief on short-term borrowing costs like credit cards and personal loansbut long-term rates like mortgages may respond sluggishly or remain influenced by bond yields, inflation, and broader economic forces.

The stage is set for the Federal Reserves next policy move at its September 2025 meeting next week, and market sentiment strongly suggests that rate cuts are imminent.

Investors and analysts are nearly unanimous in expecting a quarter-point (25-basis-point) rate cut. The CME Groups FedWatch tool and recent market signals show cut probability approaching certainty for that amount.

However, an unexpected half-point cut (50 basis points) is also in play. Markets suggest a roughly 14% chance of such an aggressive move amid intensifying concerns about a potential economic slowdown.

What fueled this shift?

• Soft Job Market: The August employment report delivered a blowjust 22,000 jobs added and rising unemployment. This has intensified pressure on the Fed to act in the name of labor stability.

• Inflation Still a Factor: While inflation remains above the Feds 2% target, recent data (e.g., jumps in producer prices) suggest that aggressive cuts may be unwarranted. Thus, a moderate approach the 25-bp cut is seen as most likely.

What it means for consumers

• Short-Term Borrowing Costs: A Fed rate cut translates to the prime rate and overnight bank interest rates, which influence credit cards, home equity lines, personal loans, and other variable-rate products. These could drop fairly quickly after a Fed move.

• Long-Term Loans (Mortgages, Auto Loans): Mortgage buyers may see less immediate benefit. Long-term interest rates are more tied to bond markets than to the Fed's benchmark rate. As a result, mortgage and auto loan rates may fall slowly or not at all, depending on broader economic dynamics.

• Spillover Benefits Over Time: Rate cuts can stimulate economic activity and borrowingeventually easing consumer costsbut the effects often unfold over several months to a couple of years.

Fed report finds employees less confident about job prospects

By Mark Huffman of ConsumerAffairs

• After the Great Resignation of 20212022, when millions of workers quit their jobs each month, more employees are now choosing to stay put for the sake of stability.

• A Federal Reserve Bank of New York report shows rising fears of job loss (14.5%, above the 12-month average) and a sharp drop in perceived chances of finding new work (down 5.8 points to 44.9%), especially among workers with only a high school education.

• Lower turnover reduces hiring costs, but experts warn that employees hugging their jobs may feel stuck, leading to disengagement, though some see this as a cultural shift toward valuing security and worklife balance.

During the pandemic, employees were on the move, in what was dubbed The Great Resignation. Things are different now, however

A new report from the Federal Reserve Bank of New York found many employees worried about finding another job. According to the report, the mean perceived probability of losing ones job in the next 12 months ticked up by 0.1 percentage point to 14.5%.

The reading is above the series 12-month trailing average of 14.0%. The mean probability of leaving ones job voluntarily in the next 12 months decreased by 0.1 percentage point to 18.9%, remaining slightly below its 12-month trailing average of 19.0%.

The mean perceived probability of finding a job if ones current job was lost fell markedly by 5.8 percentage points to 44.9%, the lowest reading since the start of the series in June 2013, the report states. The decline was broad-based across age, education, and income groups, but it was most pronounced for those with at most a high school education.

The findings are a stark reversal from 2021 to 2022, when at one point, 4.5 million employees a month were handing in their resignations, sometimes without moving into another position.

Job-hugging

Instead of job hopping, some human resource specialists see the trend in todays workforce as job hugging, with employees looking for stability. After years of pandemic uncertainty, inflation, and high-profile layoffs in industries from tech to media, many employees are clinging to their current positions for a sense of security.

According to recent survey data from HR consultancy firms, nearly 60% of employees who considered switching jobs in 2024 ultimately decided against it, citing concerns about economic instability and fear of being the last in, first out if layoffs occurred.

Employers see a shift

For employers, job-hugging presents a paradox. On the one hand, reduced turnover lowers recruitment costs and keeps teams stable. On the other hand, managers report that employees who feel stuck rather than engaged may show signs of disengagement, lower productivity, or quiet resentment.

The rise of job-hugging also reflects cultural changes. After years of hustle culture and constant job-hopping, some employees are choosing a slower career pace. Social media trends emphasize worklife balance, financial prudence, and mental health. Yet critics worry that job-hugging may stall innovation and professional growth.

Whether job-hugging is a temporary response to turbulent times or the beginning of a longer cultural shift remains to be seen. Some economists predict that once markets stabilize, workers will resume seeking better opportunities, reigniting competition for talent. Others believe a new appreciation for stability could reshape how companies think about retention, benefits, and career development.

A large Brazilian study suggests high intake of certain sugar substitutes may speed up memory and thinking decline

• People who consumed the most artificial sweeteners experienced faster declines in memory and thinking skills.

• The effect was strongest in adults under 60 and in those with diabetes.

• The study found a link, but it does not prove that sweeteners directly cause cognitive decline.

Many of us reach for diet sodas, flavored waters, or low-calorie desserts believing theyre a healthier choice than sugary options.

However, a new study recently published in Neurology, the medical journal of the American Academy of Neurology, suggests some sugar substitutes might come with hidden risks particularly for brain health.

Researchers in Brazil followed more than 12,700 adults for nearly a decade to see how consumption of low- and no-calorie sweeteners might affect memory, language, and overall thinking abilities. They discovered that people who consumed the most sweeteners experienced faster declines in these skills, raising questions about the long-term effects of artificial sugar alternatives.

Low- and no-calorie sweeteners are often seen as a healthy alternative to sugar, however our findings suggest certain sweeteners may have negative effects on brain health over time, study author Claudia Kimie Suemoto, M.D., Ph.D., said in a news release.

The study

The study included adults with an average age of 52, who were tracked for about eight years. At the beginning, participants filled out detailed food and drink questionnaires, reporting what they consumed over the prior year.

Researchers looked specifically at seven common artificial sweeteners: aspartame, saccharin, acesulfame-K, erythritol, xylitol, sorbitol, and tagatose. These sweeteners are often found in diet drinks, energy drinks, yogurt, and low-calorie desserts.

Based on intake, participants were divided into three groups. The lowest group consumed around 20 milligrams of sweeteners per day, while the highest consumed about 191 milligrams daily the equivalent of roughly one can of diet soda for aspartame.

To measure changes over time, participants completed cognitive tests at the start, middle, and end of the study. These tests assessed memory, word recall, processing speed, and verbal fluency. Researchers then adjusted for other health factors such as age, sex, high blood pressure, and cardiovascular disease.

The findings

The researchers found that people who consumed the highest amounts of artificial sweeteners showed a decline in overall thinking and memory that was 62% faster than those who consumed the least. This was found to beequivalent to about 1.6 years of additional brain aging. Those in the middle group also saw declines, though less steep.

The link was most noticeable in adults under 60 and in those with diabetes, who are more likely to rely on sugar substitutes. Interestingly, one sweetener tagatose was not associated with cognitive decline.

While we found links to cognitive decline for middle-aged people both with and without diabetes, people with diabetes are more likely to use artificial sweeteners as sugar substitutes, Dr. Suemoto said. More research is needed to confirm our findings and to investigate if other refined sugar alternatives, such as applesauce, honey, maple syrup or coconut sugar, may be effective alternatives.

Phantom Hackers use tech tricks, fake banks, and government ploys

• The Phantom Hacker Scam has stolen over $1 billion since 2024, preying mostly on seniors retirement savings.

• Scammers use a three-step playbook fake tech support, phony bank checks, and government impersonations to gain access and drain accounts.

• Experts warn that AI is making more convincing, but awareness, family support, and quick action can help prevent or minimize losses.

Scammers arent just chasing quick cash anymore theyre going after entire life savings.

The FBI is warning about a fast-growing threat called the Phantom Hacker Scam, which has already drained more than $1 billion from victims, many of them seniors, since 2024.

To get the ins and outs of these , and help older consumers prepare themselves against potential harm, ConsumerAffairs spoke with cybersecurity expert Nati Tal, head of research at Guardio.

are quickly evolving, Tal said. Scammers are harnessing the power of AI to create fake retail sites, fake government notices, and even fake sponsored ads that look just like legitimate ads.

How it works

Tal breaks down how these typically occur:

The scam usually begins with a phishing email or fake pop-up notification from a company like Google, Microsoft, or Apple, she told ConsumerAffairs. It tells the victim that their device has been infected or that their account was suspended. If the victim calls the phone number in the email or pop-up, the scammer gets them to grant remote access to their computer, collects the victim's banking information, and pressures them to take action.

Once a victim calls the fake support scam phone, a well-designed and long-term customer acquisition begins, gently making the victim more and more convinced and manipulated to give more data, access to the computer and bank, and so on. They web filter victims according to their age, profession, residence, and more financial info if they manage to capture it first - just to make sure the rest of the scam is worth the trouble, making sure the revenue of this operation is optimized as much as possible.

Know the red flags

Tal broke down the biggest red flags of the Phantom Hacker :

• Pop-ups warning of a virus with a phone number to call

• Urgent requests to move money to a safe account

• Pressure to act immediately or keep the situation secret

• Requests for remote access to your device

• Communications claiming to be from multiple authorities (bank + government + tech company)

• If you see urgency, secrecy, and money movement in the same sentence - its almost always a scam.

Steering clear of these

Despite the sophistication of these , there are ways for consumers to protect themselves, their data, and their money.

Awareness is one of the best protections, Tal said. If people are aware of these , they're less likely to fall for them. Families should normalize discussing fraud attempts, sharing stories, and reminding each other that its important to pause and verify before acting.

Are you the subject of one of these ?

If you find yourself on the receiving end of one of these , Tal recommends the following:

• Stop contact with the scammer immediately.

• Contact your bank to freeze or flag suspicious activity.

• Run a full security scan on your device and remove any remote access software installed

• Change passwords and turn on 2FA on all affected accounts.

The faster someone reacts, the more likely they can limit the damage, he said.