Breaking down the news with data, charts, and maps.
Happy Thursday! In today’s newsletter, we cover why the Federal Reserve delayed interest rate cuts until this week, whether college admissions are getting easier, and what’s behind the Democrats’ working-class woes.

Edited by Sutton Houser and James Desio

Did a friend send you this email? Subscribe <[link removed]> today! For inquiries, email [email protected] <[link removed]>.
1. Big Shift: Fed Cuts Rates
Topline: As the Federal Reserve announces <[link removed]> its first rate cuts in four years, AEI’s Steven Kamin explains <[link removed]> why the Fed has been one of the most hawkish central banks. While other central banks reduced their interest rates as core inflation fell, the Fed delayed its cuts.

Background: Kamin attributes the Fed’s hawkish stance to unexpected inflation spikes earlier this year and past
failures by previous Fed chairs. He points to the 1970s, when poor monetary policies led to persistently high inflation, de-anchored expectations about inflation, and stagflation.






“But it is the mistakes of the Fed during that period that have become so iconic, and the current members of the FOMC are desperate
not to repeat them. At this point, . . . the Fed can afford to start reversing its exceptional monetary tightening.” 
—Steven Kamin
2. College Admissions Bounce Back
Topline: Most colleges now admit a higher percentage of students than they did 20 years ago, according <[link removed]> to AEI’s Preston Cooper. Admission rates were low for most of the 2010s but have increased significantly since 2019.



- Between 2002 and 2022, 35% of public and private nonprofit colleges lowered their admission rates by over 5 percentage points. Meanwhile, 44% raised them by the same margin.



Demand Shift: Cooper notes that fewer students are applying to college, with some choosing vocational schools over four-year institutions. Consequently, tuition rates are dropping as colleges compete for a shrinking pool of applicants.





“A more competitive market in higher education yields benefits for students by raising acceptance rates and lowering
costs.” 
—Preston Cooper
3. Democrats’ Working-Class Problem
Topline: Though Democrats enjoy favorable coverage after last week’s debate, AEI’s Ruy Teixeira argues <[link removed]> they must strengthen their support among the working class to gain an edge in a close race.

The Problem: A recent New York Times/Siena College poll shows Kamala Harris trailing Donald Trump by 17 points among noncollege-educated working-class voters, the same margin that Joe Biden trailed by before dropping out.


- Compared to Biden’s 2020 numbers, Harris’s support is down by 10 points among white working-class voters and 18 points among nonwhite working-class voters.






“College-educated America may be delighted with candidate Harris but working-class America clearly is not.” 
—Ruy Teixeira
Last but Not Least . . .
Housing Finance Watch: Active Listings <[link removed]>
The US Is Losing a New Nuclear Arms Race <[link removed]>
Thanks for reading. We will be back with more data next Thursday!
For more data insights, subscribe today <[link removed]>.

Email us <[link removed]> with data questions or ideas.
View online <[[[link removed]]]>  |   Ensure delivery <[link removed]>  |   Subscribe <[link removed]>


American Enterprise Institute for Public Policy Research
1789 Massachusetts Avenue, NW, Washington, DC 20036
202.862.5800  |  www.aei.org <[link removed]>


<[link removed]>   <[link removed]>   <[link removed]>   <[link removed]>    <[link removed]>  
<[link removed]> Donate to AEI <[link removed]> in support of defending and promoting freedom, opportunity, and enterprise.
This message is for: [email protected] <[email protected]> | Manage preferences <[link removed]> or Unsubscribe <[link removed]>

<!-- This is a comment -->