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

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Topline: As the Federal Reserve announces its first rate cuts in four years, AEI’s Steven Kamin explains 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.

Topline: Most colleges now admit a higher percentage of students than they did 20 years ago, according 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.

Topline: Though Democrats enjoy favorable coverage after last week’s debate, AEI’s Ruy Teixeira argues 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.