In this episode of The Ascent, Sam McGee of Crestmont Private Wealth breaks down one of the most misunderstood topics in personal finance — the Federal Reserve and interest rates. Whether you're a homeowner, borrower, or just curious about what drives the economy, this episode gives you a clear, jargon-free explanation of how the Fed works and why it matters to your everyday financial life.

Topics covered:

What is the Federal Reserve and how did it start?

How interest rates regulate the economy and inflation

The difference between Fed rate cuts and mortgage rates

Why the 10-year Treasury is a better barometer for mortgage rates

Lessons from COVID-19, the 2008 financial crisis, and beyond

0:00 – Welcome & intro (Hill Country flooding update)

0:30 – Why interest rates matter to everyone

1:30 – What is the Federal Reserve? (Founded 1913)

3:00 – The Fed's two goals: economy vs. inflation

4:30 – How low rates stimulate a sluggish economy

6:00 – How high rates cool inflation

7:00 – Sam's background in meteorology & pivot to finance

8:30 – Mortgage rates: does a Fed cut automatically lower them?

10:00 – The 10-year Treasury as a mortgage rate barometer

12:00 – The FOMC and the federal funds rate explained

13:30 – The Fed as an emergency response system

15:00 – Post-COVID economic reflections & soft landing

16:00 – About Crestmont Private Wealth & closing

📩 Contact: info@crestmontpw.com | sam@crestmontpw.com

🌐 Crestmont Private Wealth | Houston & Boerne, TX

Original Air Date: August 1, 2026 at 8:30am as heard on Boerne Radio 103.9FM

Contact:  www.crestmontpw.com 

Alec Walker in Houston:  831-280-5288 

Sam McGee in Boerne: 830-368-2898