President Trump says there is virtually no inflation as stock market hits new highs
US stocks rise slightly, Bitcoin records new ATH
The Fed recently cut interest rates by 25 basis points. Market expects further easing
The stock market and cryptocurrencies have been in the spotlight lately, with stock prices and Bitcoin hitting new highs as the Federal Reserve discusses the possibility of lowering interest rates. This comes amid heightened uncertainty as the U.S. government continues to shut down. Investors and policymakers are watching closely to see how new developments could affect the economy.
In this context, President Trump provided the latest information.
President Trump celebrates market boom
Amid market volatility, President Trump offered his thoughts on the economy, calling it “good news for the holiday season.”
JUST OUT: Good news for the holiday season. Although initial prices are lower, tariffs are making our country an economic powerhouse again. There is also virtually no inflation as the stock market continues to hit record highs. The best thing in the world for America
(TS: October 6th 07:56 ET) …
— TrumpTruthOnX social post (@TrumpTruthOnX) October 6, 2025
President Trump said that while tariffs are helping to boost the U.S. economy, initial prices are falling. He also claimed that inflation was virtually non-existent and cited record highs in the stock market as evidence of strong economic performance.
Market and Cryptocurrency Proliferation
This comes after Bitcoin hit a new record of $125,000 over the weekend, solidifying its role as the leading asset today.
Gold prices have also continued to rise historically, hitting 39 all-time highs this year. At the same time, the S&P 500 is enjoying one of the strongest six-month rallies in history, showing broad-based strength across asset classes.
The usual things are happening:
Silver is currently up +63% in 2025, reaching a whopping $2.7 trillion in value, near an all-time high.
Meanwhile, Bitcoin casually hit an all-time high of $125,000 on Saturday night, and gold hit its 39th all-time high in 2025.
All while the S&P 500 is in one of those… https://t.co/LR2VuVk3jS pic.twitter.com/IPh5clK45q
— Kobeissi Letter (@KobeissiLetter) October 5, 2025
Despite the U.S. government shutdown and global political uncertainty, the major U.S. stock indexes, the Dow, S&P 500 and Nasdaq, opened slightly higher on Monday, indicating that the U.S. stock market is still on an upward trend.
Fed faces increasing pressure
The Federal Reserve continues to monitor new inflation data, which show prices are rising slightly but within expectations.
The September report showed CPI rose 2.9% year-on-year, in line with expectations and slightly up from 2.7% in August.
Federal Reserve President Stephen Milan has advocated aggressive rate cuts, arguing that current policy is too tight and could slow economic growth. But his stance is at odds with several regional Fed presidents, including Austan Goolsby and Rory Logan, who have warned that services inflation remains high and warned against aggressive easing.
The Fed recently cut interest rates by 25 basis points. Officials are targeting a range of 3.5%-3.75% by the end of 2025 and 3.25%-3.5% in 2026. CME's FedWatch tool currently shows a 94.6% chance of another 25 basis point rate cut at the next meeting.
Challenges ahead for the Fed
Bloomberg noted that the Fed faces a difficult path as it balances inflation, labor market concerns and political pressure. Tariffs and price increases complicate the outlook, while the government shutdown delays the release of key economic data and makes policy decisions more difficult.
The report also notes political pressures, such as President Trump's push to lower interest rates and future decisions about the Fed's leadership, adding further complexity.
This shows that even while markets are at record highs, the Fed still needs to balance supporting growth with controlling inflation.
