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President Trump says virtually there is no inflation as stock markets hit new highs
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US stocks see modest gains, while Bitcoin registers new ATH
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Federal Reserve recently cut rates by 25 basis points; markets expect further easing
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
Amid the market swings, President Trump shared his view on the economy, calling it “good news for the holiday season.”
JUST OUT: Good news for the Holiday Season. EARLY PRICES ARE DOWN, WHILE TARIFFS ARE MAKING OUR COUNTRY AN ECONOMIC POWER AGAIN. Also, virtually NO INFLATION, AS STOCK MARKETS CONTINUALLY HIT RECORD HIGHS. THE BEST OF ALL WORLDS FOR THE U.S.A.
(TS: 06 Oct 07:56 ET)…
— Trump Truth Social Posts On X (@TrumpTruthOnX) October 6, 2025
Trump shared that early prices are falling while tariffs are helping boost the U.S. economy. He also claimed that inflation is virtually nonexistent 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 today.
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 broad strength across asset classes.
Something usual is happening:
Silver is now up +63% in 2025 and worth a whopping $2.7 TRILLION, nearly at a record high.
Meanwhile, Bitcoin casually hit a record $125,000 on a Saturday night and gold has made 39 all time highs in 2025.
All while the S&P 500 is on one of its… https://t.co/LR2VuVk3jS pic.twitter.com/IPh5clK45q
— The Kobeissi Letter (@KobeissiLetter) October 5, 2025
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, which shows that the U.S stock market is still trending upward.
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%.
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, including Austan Goolsbee and Lorie Logan, 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.
