Key Takeaways Retail sales increased by 0.1% in August, bucking economist projections of a decline but slowing down from July’s pace.The sales report is the last major release before the Federal Reserve's policy-setting committee makes an interest rate decision on Wednesday.

The half-point reduction is expected to kick off a series of reductions extending into 2025, providing relief for prospective car and home buyers.

The cut sets the federal funds rate target range at 4.75% to 5%. The effect could be especially good for variable and indexed annuities, because many consumers now hold contracts issued when interest rates were very low, he said.