Trump Claims “Virtually No Inflation” as Markets Hit Record Highs

Inventory markets and crypto are grabbing consideration recently, with shares and Bitcoin hitting new highs whereas the Fed debates doable charge cuts. This comes because the U.S. authorities stays in a shutdown, including uncertainty. Traders and policymakers are carefully watching how new developments might influence the financial system.

Amidst all of this, President Trump has chipped in with an replace.

Trump Celebrates Market Growth

Amid the market swings, President Trump shared his view on the financial system, calling it “excellent news for the vacation season.”

Trump shared that early costs are falling whereas tariffs are serving to enhance the U.S. financial system. He additionally claimed that inflation is just about nonexistent and pointed to document highs within the inventory markets as proof of robust financial efficiency.

Markets and Crypto Surge

This comes as Bitcoin hit a brand new document of $125,000 over the weekend, cementing its position as a number one asset right this moment.

Gold has additionally been on a historic run, logging 39 all-time highs this yr. On the identical time, the S&P 500 is having fun with one in every of its strongest six-month rallies in historical past, displaying broad power throughout asset courses.

Regardless of the U.S. authorities shutdown and international political uncertainty, main U.S. inventory indices, the Dow, S&P 500, and Nasdaq opened barely greater on Monday, which exhibits that the united statesstock market remains to be trending upward.

Fed Faces Rising Strain

The Federal Reserve stays in focus as new inflation information exhibits costs rising barely however staying inside expectations.

The September report confirmed that the CPI rose 2.9% year-over-year, consistent with expectations and barely up from August’s 2.7%.

Fed Governor Stephen Miran is advocating for aggressive rate of interest cuts, arguing that present coverage is simply too tight and will gradual financial development. Nevertheless his stance places him at odds with a number of regional Fed presidents, together with Austan Goolsbee and Lorie Logan, who warning that companies inflation stays excessive and warn in opposition to aggressive easing.

The Fed not too long ago reduce charges by 25 foundation factors. Officers purpose for a spread of three.5%–3.75% by the tip of 2025 and three.25%–3.5% in 2026. The CME FedWatch instrument at the moment exhibits a 94.6% likelihood of one other 25-basis-point reduce on the subsequent assembly.

Challenges Forward for the Fed

Bloomberg notes that the Fed is navigating a difficult path because it balances inflation, labor-market considerations, and political pressures. Tariffs and rising costs complicate the outlook, whereas the federal government shutdown has delayed key financial information, making coverage choices tougher.

The report additionally notes political pressures, together with President Trump’s push for quicker cuts and upcoming choices on Fed management, including additional complexity.

This exhibits that even whereas markets hit document highs, the Fed must steadiness between supporting development and controlling inflation.