Robertson Stephens Weekly Commentary – September 2, 2025

Lost in the sigh of relief that the inflation numbers (Personal Consumption Expenditures Index, or “PCE”) last Friday weren’t all that bad was the fact that inflation has conclusively ceased its movement to the Federal Reserve target of 2%. Given that the Federal Reserve has not changed its target inflation rate, it would normally be assumed that the Fed would not alter a monetary policy judged to be moderately restrictive. The S&P 500 closed out August near an all-time high, defying consensus commentary that was pessimistic. Coming into the month, many investors were bracing for seasonal weakness, the onset of new tariffs, elevated valuations, compressed credit spreads, and commentary related to the Federal Reserve’s independence. On the wealth planning front, we discuss how your plan could be affected if interest rates drop.