Financial and Economic News for September 18, 2025

This week’s biggest money stories? Nvidia bails out Intel with a $5B investment, the Fed finally cuts rates, mortgage rates are confusing everyone, and Meta thinks your next iPhone might be… glasses. Let’s break it down.

Nvidia Invests $5 Billion in Intel

Big shake-up in the chip world: Nvidia is putting $5 billion into Intel. Yep, the same Nvidia leading the AI boom and the same Intel that’s been struggling for years.

Here’s the deal: Nvidia gets access to Intel’s CPUs. Intel gets cash, credibility, and a much-needed lifeline. The stock jumped 25% on the news.

But let’s be real, money doesn’t fix everything. Intel is still burning cash in manufacturing, its foundry business is behind, and competitors like AMD and TSMC are flying. For business owners, it’s the same lesson: throwing money at problems rarely works if the structure, leadership, or strategy is broken.

So is this Intel’s comeback or just another short-lived bounce? Investors are betting on the AI wave, but the real test is execution.

Fed Cuts Interest Rates in September 2025

After months of waiting, the Federal Reserve cut rates by a quarter point, bringing them to 4%–4.25%. It’s the first rate cut in nine months.

Why now? Jobs. Payroll gains are slowing, unemployment is edging up, and the labor market looks softer than it did earlier this year. Powell says the bigger risk now is employment, not inflation.

What it means for you:

• Credit card balances and personal loans should ease a little
• Small business loans get slightly cheaper
• Mortgage rates, already drifting lower, could fall further if cuts continue

The gamble? Cutting rates to support jobs without reigniting inflation, which is still around 3%.

Do Fed Cuts Lower Mortgage Rates? Not Exactly.

Here’s a common search: “Do mortgage rates fall when the Fed cuts rates?” The answer: not always.

Mortgage rates follow the 10-year Treasury yield, since that’s about how long most people keep a 30-year mortgage before refinancing or moving. Investors in those bonds worry more about long-term inflation than about what the Fed did last week.

Example: last year the Fed cut rates, but mortgage rates actually went up because inflation fears spiked.

So what really moves mortgage rates? Inflation expectations, investor confidence, and demand for U.S. debt worldwide. The Fed can nudge things, but it’s not a one-to-one link.

How Much Do You Need to Make for a $1 Million Home?

With today’s average 30-year mortgage rate around 6.5%, a $1 million home comes with a monthly payment of about $5,057 (before taxes and insurance) if you put 20% down. Using the common 28/36 rule, you’d need an annual salary between $220K–$250K to comfortably qualify.

Go lower on the down payment, and costs climb even higher thanks to PMI and jumbo loan requirements. And because most conforming loans cap out around $806,000, a million-dollar purchase in many markets will mean stricter requirements: higher credit, bigger down, and cash reserves.

The takeaway: buying a $1 million home in 2025 requires more than a big paycheck. It means solid credit, strong savings, and the ability to manage debt.

Meta Bets Big on Smart Glasses

Meta just announced its Ray-Ban smart glasses, dropping September 30 for $799. They’ve got a built-in screen and a wristband that lets you control it with hand movements. You can text, watch videos, and use WhatsApp without even pulling out your phone.

Zuckerberg’s pitch: glasses are the future of AI. If the device can literally “see what you see,” it can respond in real time. Analysts at Citi like the idea, JPMorgan is cautious, and Wall Street is watching closely.

But here’s the question: will people actually wear them? Apple, Samsung, and Amazon are racing to drop their own versions by 2027, so the smart glasses war is on.

The Bottom Line

Here’s what really stood out in the markets and economy this week:

• Nvidia’s $5B investment in Intel is a confidence boost, but it won’t erase Intel’s deeper challenges overnight

• The Fed finally trimmed rates, shifting focus from inflation to protecting jobs

• Mortgage rates may drift lower, but they move with the 10-year Treasury yield, not just Fed policy

• Owning a $1M home in 2025 takes serious income (often $220K or more) plus strong credit and savings

• Meta’s new smart glasses could spark the next big shift in consumer tech if people actually adopt them

The thread through it all? Money and headlines get attention, but lasting change comes from execution. Whether it’s Intel, the Fed, or even homebuyers, the real test is what happens after the initial buzz fades.