Stock markets and crypto are grabbing attention lately, with stocks and Bitcoin hitting new highs while the Fed debates possible rate cuts. This comes as the U.S. government remains in a shutdown, adding uncertainty. Investors and policymakers are closely watching how new developments could impact the economy.
Amidst all of this, President Trump has chipped in with an update.
Trump Celebrates Market Boom
In a latest post on Truth Social, Trump shared his view on the economy, calling it “good news for the holiday season.”
Trump shared that early prices are down while tariffs are helping boost the U.S. economy. He also claimed that inflation is virtually there is no inflation and pointed to record highs in the stock markets as evidence of strong economic performance.
Markets and Crypto Surge
This comes as Bitcoin hit a new record of $125,000 over the weekend, cementing its role as a leading asset.
Gold has also been on a historic run, logging 39 all-time highs this year. At the same time, the S&P 500 is enjoying one of its strongest six-month rallies in history, showing strength across asset classes.
Despite the U.S. government shutdown and global political uncertainty, major U.S. stock indices, the Dow, S&P 500, and Nasdaq opened slightly higher on Monday.
Fed Faces Growing Pressure
The Federal Reserve remains in focus as new inflation data shows prices rising slightly but staying within expectations. The September report showed that the CPI rose 2.9% year-over-year, in line with expectations and slightly up from August’s 2.7%.
Meanwhile, Fed Governor Stephen Miran is advocating for aggressive interest rate cuts, arguing that current policy is too tight and could slow economic growth. However his stance puts him at odds with several regional Fed presidents, who caution that services inflation remains high and warn against aggressive easing.
The Fed recently cut rates by 25 basis points. Officials aim for a range of 3.5%–3.75% by the end of 2025 and 3.25%–3.5% in 2026. The CME FedWatch tool currently shows a 94.6% probability of another 25-basis-point cut at the next meeting.
Challenges Ahead for the Fed
Bloomberg notes that the Fed is navigating a tricky path as it balances inflation, labor-market concerns, and political pressures. Tariffs and rising prices complicate the outlook, while the government shutdown has delayed key economic data, making policy decisions more difficult.
The report also notes political pressures, including President Trump’s push for faster cuts and upcoming decisions on Fed leadership, adding further complexity.
This shows that even while markets hit record highs, the Fed needs to balance between supporting growth and controlling inflation.
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