Last week the Federal Reserve announced that it was lowering its key interest rate by half a percentage point. Rates had previously been at a 23-year high for more than a year.
The move is expected to have a large impact on the economy. Immediately following the news, the S&P 500 rose 1.3% but has since cooled off.
David M. Dworkin, chief executive of The National Housing Conference, said the move would “have far-reaching implications for the U.S. housing market, potentially alleviating affordability concerns and stimulating inventory growth.”
“Generally, when the federal funds rate gets lower, banks lower their interest rates on loans. These lower loan rates can help stimulate economic growth in a couple ways. First, they can make it cheaper for people and businesses to borrow money for big purchases or new ventures,” said a video from Charles Schwab. “Secondly, banks also typically lower rates on CDs and savings accounts, which makes it less profitable to keep money in bank accounts. Instead of saving, individuals and businesses may want to invest or spend that money. The goal is to kick-start a virtuous cycle of spending and growth that creates jobs and steers inflation to more healthy levels.”
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Duarte-based City of Hope has received a $150 million gift from the family of internet publishing entrepreneur Emmet Stephenson for research and therapy development for pancreatic cancer, the hospital announced last week. It is the largest single gift in the cancer and diabetes research and treatment institution’s 111-year history. The gift is in honor of Stephenson’s late wife, Toni, who died from pancreatic cancer in 2020.
“We want to ignite interest and encourage pancreatic cancer research worldwide,” Stephenson said. “We know that cancer discoveries require significant funding, which is why (daughter Tessa Stephenson Brand) and I believe multiple elements of this gift will make a difference in fighting this terrible disease. This initiative is a purposeful investment to spur ingenuity and ensure that the most promising advances move forward as fast as possible.”
The gift will be used to further the hospital’s research into pancreatic cancer, to gain a better understanding of the disease and develop immunotherapy-based treatment approaches.
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In other donation news, earlier this month Pomona College alumna Sue E. Berryman pledged a $10 million legacy gift to support the school. The funding will establish six endowed funds and support humanities, music, scholarships and faculty innovation.
“We are exceptionally grateful to Sue for this generous gift, which will unlock wonderful experiences for countless future Sagehens,” Pomona College President G. Gabrielle Starr said.
Berryman enrolled at Pomona College in 1955 and graduated magna cum laude with a degree in English and creative writing. Her mother, father and aunt also graduated from the school.
“This legacy gift is a small thank you to them,” Berryman said in a statement.
Howard Fine contributed to this report.
