Market Jitters: Fed, AI, Tariffs, & DC's Shadow on Q4 Economy
As the third quarter concludes and the final quarter of the year commences, global markets continue to navigate a complex landscape characterized by evolving monetary policies, persistent economic resilience, and a notable degree of political uncertainty. The preceding week delivered a series of significant developments, including a modest rate cut by the Federal Reserve, the achievement of fresh record highs in equity markets, and a resurgence of trade tensions. Concurrently, Washington D.C. finds itself on the precipice of a potential government shutdown, ensuring that policy decisions from the capital will once again command significant market attention. Before delving into the implications of these D.C.-centric events, a review of the five pivotal themes that shaped market dynamics last week is essential. 1. Federal Reserve Adjusts Rates, Yields Paradoxically Climb The Federal Reserve enacted a 0.25% interest rate reduction two weeks prior, marking its inaugural rate cut of 2025. Th…
