EconomicGrowthOrRisk

Federal Reserve President Neel Kashkari has signaled that the U.S. central bank could implement up to two additional interest rate cuts before the end of 2025, as it navigates a complex economic landscape marked by slowing growth and persistent inflation. Speaking on September 19, 2025, Kashkari emphasized the Fed’s data-driven approach, noting that a weakening labor market could prompt more aggressive rate reductions, while inflationary pressures might necessitate rate hikes. His remarks, delivered ahead of the Fed’s latest policy meeting, underscore the central bank’s delicate balancing act in fostering economic stability.
A Flexible Monetary Policy Outlook
Kashkari’s comments reflect the Federal Reserve’s cautious yet adaptable stance following its recent quarter-point rate cut on September 17, 2025, which lowered the federal funds rate to a range of 4%–4.25%. This adjustment, the first cut since December 2024, responded to signs of labor market softness, with nonfarm payroll growth slowing to 142,000 in August. Kashkari, who will gain voting rights on the Federal Open Market Committee (FOMC) in 2026, suggested that two additional quarter-point cuts could occur at the Fed’s October and December meetings, aligning with market expectations reflected in the interest rate swap market.
However, Kashkari stressed that the Fed remains open to raising rates if economic indicators, such as rising inflation or robust growth, warrant tighter policy. With inflation at 2.9% in August, above the Fed’s 2% target, he noted that tariff-related price pressures are unlikely to push inflation significantly above 3%, but the central bank is prepared to act decisively if needed. “We’re going meeting by meeting, looking at the data,” Kashkari said, highlighting the Fed’s commitment to flexibility in an uncertain environment.
Labor Market Concerns Drive Policy Considerations
Kashkari pointed to the labor market as a critical factor in the Fed’s decision-making. Recent data showing weaker job creation, partly attributed to reduced immigration and declining labor demand, has raised concerns about economic momentum. “If the labor market weakens faster than we expect, we could move more aggressively to support it,” he stated, acknowledging the risk of non-linear deterioration in employment. This contrasts with earlier projections, where Kashkari anticipated only two rate cuts for the entire year, reflecting the Fed’s responsiveness to evolving conditions.
The Fed’s recent rate cut and Kashkari’s openness to further easing signal a pivot toward supporting employment amid mixed economic signals. While stock markets remain robust, Treasury yields have climbed to 4.12% on the 10-year note, indicating investor recalibration after Fed Chairman Jerome Powell tempered expectations for rapid cuts. Kashkari also noted a revised neutral rate estimate of 3.1%, suggesting that current policy is less restrictive than previously thought, providing room for measured easing.
Implications for Markets and the Economy
Kashkari’s remarks come as investors brace for the Fed’s next moves, with markets anticipating two additional cuts by year-end. The central bank’s data-dependent approach has heightened scrutiny of upcoming employment and inflation reports, which will shape the trajectory of monetary policy. A potential acceleration of rate cuts could bolster economic activity, particularly in sectors sensitive to borrowing costs, but risks reigniting inflationary pressures if executed too aggressively.
The broader economic context, including the U.S. House’s passage of a temporary spending bill on September 19 to avert a government shutdown, adds complexity. Fiscal uncertainty, combined with tariff debates and global trade dynamics, could influence the Fed’s calculus. Kashkari’s assurance that inflation is unlikely to spike due to tariffs provides some market reassurance, but his openness to rate hikes underscores the Fed’s vigilance.
A Balancing Act for Sustainable Growth
Kashkari’s comments highlight the Federal Reserve’s challenge of balancing inflation control with economic growth. The central bank’s recent actions, including the September rate cut, reflect a proactive response to labor market weaknesses, while its flexibility to tighten policy ensures resilience against inflationary risks. As the Fed navigates these dynamics, Kashkari’s emphasis on data-driven decisions positions it to adapt swiftly to changing conditions.
Looking ahead, the Fed’s October and December meetings will be pivotal, with investors and policymakers closely monitoring labor market trends and inflation data. Kashkari’s signal of up to two more rate cuts in 2025 reflects cautious optimism, aiming to support employment while maintaining price stability. As the U.S. economy faces uncertainties, the Fed’s adaptive strategy will play a critical role in shaping growth and investor confidence in the months ahead.
#FederalReserve #interestrates #MonetaryPolicy #EconomicGrowthOrRisk #LaborMarket

Federal Reserve President Neel Kashkari has signaled that the U.S. central bank could implement up to two additional interest rate cuts before the end of 2025, as it navigates a complex economic landscape marked by slowing growth and persistent inflation. Speaking on September 19, 2025, Kashkari emphasized the Fed’s data-driven approach, noting that a weakening labor market could prompt more aggressive rate reductions, while inflationary pressures might necessitate rate hikes. His remarks, delivered ahead of the Fed’s latest policy meeting, underscore the central bank’s delicate balancing act in fostering economic stability.
✅A Flexible Monetary Policy Outlook
Kashkari’s comments reflect the Federal Reserve’s cautious yet adaptable stance following its recent quarter-point rate cut on September 17, 2025, which lowered the federal funds rate to a range of 4%–4.25%. This adjustment, the first cut since December 2024, responded to signs of labor market softness, with nonfarm payroll growth slowing to 142,000 in August. Kashkari, who will gain voting rights on the Federal Open Market Committee (FOMC) in 2026, suggested that two additional quarter-point cuts could occur at the Fed’s October and December meetings, aligning with market expectations reflected in the interest rate swap market.However, Kashkari stressed that the Fed remains open to raising rates if economic indicators, such as rising inflation or robust growth, warrant tighter policy. With inflation at 2.9% in August, above the Fed’s 2% target, he noted that tariff-related price pressures are unlikely to push inflation significantly above 3%, but the central bank is prepared to act decisively if needed. “We’re going meeting by meeting, looking at the data,” Kashkari said, highlighting the Fed’s commitment to flexibility in an uncertain environment.
✅ Labor Market Concerns Drive Polic Considerations
Kashkari pointed to the labor market as a critical factor in the Fed’s decision-making. Recent data showing weaker job creation, partly attributed to reduced immigration and declining labor demand, has raised concerns about economic momentum. “If the labor market weakens faster than we expect, we could move more aggressively to support it,” he stated, acknowledging the risk of non-linear deterioration in employment. This contrasts with earlier projections, where Kashkari anticipated only two rate cuts for the entire year, reflecting the Fed’s responsiveness to evolving conditions.
The Fed’s recent rate cut and Kashkari’s openness to further easing signal a pivot toward supporting employment amid mixed economic signals. While stock markets remain robust, Treasury yields have climbed to 4.12% on the 10-year note, indicating investor recalibration after Fed Chairman Jerome Powell tempered expectations for rapid cuts. Kashkari also noted a revised neutral rate estimate of 3.1%, suggesting that current policy is less restrictive than previously thought, providing room for measured easing.
✅Implications for Markets and the Economy
Kashkari’s remarks come as investors brace for the Fed’s next moves, with markets anticipating two additional cuts by year-end. The central bank’s data-dependent approach has heightened scrutiny of upcoming employment and inflation reports, which will shape the trajectory of monetary policy. A potential acceleration of rate cuts could bolster economic activity, particularly in sectors sensitive to borrowing costs, but risks reigniting inflationary pressures if executed too aggressively.
✅🔥The broader economic context, including the U.S. House’s passage of a temporary spending bill on September 19 to avert a government shutdown, adds complexity. Fiscal uncertainty, combined with tariff debates and global trade dynamics, could influence the Fed’s calculus. Kashkari’s assurance that inflation is unlikely to spike due to tariffs provides some market reassurance, but his openness to rate hikes underscores the Fed’s vigilance.
✅A Balancing Act for Sustainable Growth
Kashkari’s comments highlight the Federal Reserve’s challenge of balancing inflation control with economic growth. The central bank’s recent actions, including the September rate cut, reflect a proactive response to labor market weaknesses, while its flexibility to tighten policy ensures resilience against inflationary risks. As the Fed navigates these dynamics, Kashkari’s emphasis on data-driven decisions positions it to adapt swiftly to changing conditions.
✅Looking ahead, the Fed’s October and December meetings will be pivotal, with investors and policymakers closely monitoring labor market trends and inflation data. Kashkari’s signal of up to two more rate cuts in 2025 reflects cautious optimism, aiming to support employment while maintaining price stability. As the U.S. economy faces uncertainties, the Fed’s adaptive strategy will play a critical role in shaping growth and investor confidence in the months ahead.
✅Federal Reserve Bank of Minneapolis President Neel Kashkari said he supported the US central bank’s decision to lower interest rates this week and penciled in two additional cuts this year.
✅“I believe the risk of a sharp increase in unemployment warrants the committee taking some action to support the labor market,” Kashkari said Friday in an essay published on his bank’s website.
Minneapolis Federal Reserve President Neel Kashkari said Friday that he expects President Donald Trump's tariffs to exert minimum long-term pressure on inflation, leaving room for multiple interest rate reductions ahead.
In a CNBC interview, the central banker detailed reasons why he would like the Fed to lower its benchmark borrowing level at each of the remaining two meetings this year in addition to the one the Federal Open Market Committee approved Wednesday. The three total cuts is one more than he had advocated in the prior version of the committee's "dot plot."

#FederalReserve #BNBBreaks1000 #MonetaryPolicy #EconomicGrowthOrRisk #interestrates

In a bold overhaul of U.S. immigration policy, President Donald Trump has launched the Trump Gold Card program, offering innovative pathways to U.S. residency for wealthy individuals and corporate-sponsored employees. Announced on September 19, 2025, the initiative, which includes personal, platinum, and corporate options, replaces the EB-5 investment immigration program with a streamlined, high-value contribution model. By requiring significant financial gifts, the program aims to attract global talent and capital, fostering economic growth while prioritizing national interests.
A Tiered Approach to Residency
The Trump Gold Card program introduces three distinct tiers, each designed to cater to different investor profiles while ensuring rigorous vetting by the Department of Homeland Security (DHS). The initiative, detailed on a dedicated government website, positions the U.S. as a premier destination for high-net-worth individuals and corporations seeking residency benefits.
Trump Gold Card: This entry-level option grants lawful permanent residency to individuals who pay a $15,000 vetting fee and contribute a $1 million financial gift to the U.S. Treasury upon DHS approval. The gift is treated as evidence of exceptional business ability or national benefit, expediting the visa process under existing EB-1 and EB-2 categories. Up to 80,000 Gold Cards are available, offering a fast-track to green card status for successful applicants.Trump Platinum Card: Targeting ultra-wealthy individuals, this tier requires a $5 million deposit and allows holders to reside in the U.S. for up to 270 days annually without paying taxes on non-U.S. income. Subject to DHS review, the Platinum Card provides tax-advantaged residency, appealing to global investors seeking flexibility and financial benefits.Trump Corporate Gold Card: Designed for businesses, this option enables corporations to sponsor employees for U.S. residency by paying a non-refundable vetting fee per employee and a $2 million donation upon approval. The program allows sponsors to transfer sponsorship to new employees without additional contributions, subject to an annual maintenance and transfer fee. This flexibility makes it attractive for companies aiming to attract top talent.
Replacing the EB-5 Program
The Gold Card program replaces the EB-5 visa, which previously offered residency through a $800,000 investment tied to job creation. President Trump and Commerce Secretary Howard Lutnick have positioned the new initiative as a more efficient and impactful alternative, raising the financial threshold to ensure only high-value contributors gain entry. Lutnick estimated the program could generate $100 billion for the Treasury, which will be used to promote American industry and reduce federal debt.
Unlike the EB-5, the Gold Card program does not require job creation, instead treating financial contributions as proof of exceptional ability or national benefit. This shift aligns with the administration’s focus on prioritizing economic contributions over traditional immigration metrics, streamlining adjudication while maintaining legal and security standards.
Economic and Political Implications
The Trump Gold Card program reflects a broader strategy to leverage immigration policy for economic gain, aligning with the administration’s unconventional revenue-raising measures, such as new tariffs and corporate revenue stakes. By monetizing residency, the program aims to attract global entrepreneurs, investors, and professionals, positioning the U.S. as a hub for innovation and commerce. Critics, however, argue that the high financial thresholds reinforce inequality, limiting access to the wealthiest applicants.
Legal experts have raised concerns about the program’s implementation, noting that creating a new visa category typically requires Congressional approval. The administration has sidestepped this by leveraging existing EB-1 and EB-2 visa frameworks, though the suspension of other green card categories, as suggested by Lutnick, could face legal challenges. The program’s emphasis on DHS vetting aims to address security concerns, ensuring that only qualified candidates are approved.
Global Comparisons and Future Outlook
The Gold Card initiative draws parallels with investment-based residency programs in countries like Canada and Australia, which offer citizenship or residency for significant financial contributions. By setting a $1 million minimum for individuals and $2 million for corporate sponsorships, the U.S. program is among the most expensive globally, reflecting its focus on high-impact contributors. The Platinum Card’s tax advantages further distinguish it, appealing to ultra-wealthy individuals seeking flexible residency options.
As applications open via the official government portal, trumpcard.gov, the program is expected to attract significant interest from international investors. The administration’s plans to potentially expand the initiative to other visa categories suggest a long-term vision for reshaping U.S. immigration policy. However, the success of the program will depend on its ability to balance economic benefits with public and legal scrutiny.
A New Era for U.S. Immigration
The Trump Gold Card program marks a transformative shift in U.S. immigration policy, prioritizing financial contributions to attract global talent and capital. By offering personal, platinum, and corporate options, the initiative provides flexible pathways to residency while aligning with the administration’s economic goals. As the program rolls out, its impact on the U.S. economy, immigration landscape, and global investment trends will be closely watched, setting the stage for a new chapter in America’s approach to high-value immigration.
#Immigration #trumpgoldcard #USResidency #EconomicGrowthOrRisk #TRUMP

As reported by Franklin Templeton strategist Max Gokhman, the pronouncement by U.S. Federal Reserve Chair Jerome Powell has opened floors for discourse on the potential for stagflation on the U.S. economy. Although Powell never uttered the word stagflation, his comments on the persistent inflation and the accompanying slowing growth chaotic the economy growth suggest some creeping anxiety. Stagflation, the heretic growth of the economy characterized by slow growth and an incessant increase in inflation, has Powell in the Federal Reserve's world of trade, scarcely labor markets, and inflation playing fields will latency on Powell's words mean much to the rest of the world.
Powell’s Cautious Tone on Economic Risks
In the federal open market committee's September meeting the next month he pointed out how delicate the balancing is for the Fed considering both maximum employment and price stability. He pointed out how inflationary concerns have a positive risk and employment prospects have a negative risk. He pointed out how ‘challenging the situation is’ which is how the Fed’s goals are in conflict. According to Gokhman, Powell mentioning the ‘two sided risks’ speaks to a potential concern with stagflation, though the term was never used. And it is consistent with this. Powell has stated the because and predicted this as far back as April 2025, ‘there's gonna be slower growth and higher prices because of the tariffs." Powell, in the most cautious terms, has explained this observation and — to his credit — attempted to justify it.
This cautious thinking is illustrated in the Fed’s latest actions. In the September meeting between FOMC, the controversial decision to lower the federal funds rate to within the region of 4 to 4.5 percent growth was determined within the context of a softening job market. However, Powell also pointed out how perhaps the most controversial, ‘there is a consensus’ that focused on the 50 basis, ‘there is no broad support’ for a larger cut’ and is best understood as a desire to bring attention to the thesis that ‘Let us not cut rates in an excessive manner at this point’ was the guiding principle of the majority. Too much of the intensity was the concern. This illustrates the Feds’s ‘no touch’ policy of stagflation.
Stagflation: A Looming Threat
Unlike other forms of inflation, stagflation accompanies slow economic growth and increases in unemployment, and poses a difficult problem for economic policymakers. Stagflation poses a problem for economic policymakers, as the use of traditional monetary policy tools—like rate increases to inflation and decreases to economic growth—conflicts. Gokhman has pointed to several indicators for the U.S. economy that support this concern and forecasts U.S. GDP growth to taper down to 1.25% in 2026 from 2.8% in 2024, while inflation remains above the Fed’s target of 2% and is soaring, in part, because of the tariffs that are being levied.
Tariffs and other trade policy instruments have now become the principal source of stagflation. As Powell points out, stagflation fosters higher prices and, at the same time, lower business and consumer confidence, which accompanies a decline in growth. Job creation has also slowed, with net new jobs created from March 2024 to March 2025 tapering to half of what was expected. To compound stagflation, declines in industrial production aggravate the economic downturn.
Analyst Insights and Market Implications
Gokhman interprets Powell’s remarks as reflection to the Fed’s ever-increasing discomfort with a complicated problem. Although Powell has toned down his stagflation pronouncements—arguing in May 2024 that he “saw neither the stag nor the flation”—there has been a change in his stance more recently. Gokhman interprets the absence of a “risk-free path” as a more pronounced concern of the bifurcation of the objectives of inflation and employment, which means that Powell now considers the prospect of stagflation as more real. This concern is shared by other analysts with regard to the Fed’s 2025 growth forecast of 1.7% which was recently downgraded, along with a forecast of core inflation that sits troublingly high at 2.8%.
From the perspective of financial markets, Powell’s comments, along with the prospect of stagflation carry more weight. Risk assets, ranging from cryptocurrencies to equities, have recently drifted along with changes in stance on monetary policy. The hesitant and cautious 25-basis-point rate cut in September, combined with Powell’s cautious approach to further aggressive cuts, implies to Fed watchers that they are now more “inflationist” relative to “stimulus” which in turn has the potential to influence 2026 investment expectations downwards. Potentially, this could spell trouble for the more speculative parts of the economy, like the technology and the manufacturing sectors, which are sensitive to interest rate and trade policy changes.
Strategic Navigation and Future Outlook
Within Powell's leadership the Federal Reserve sustains the approach of supplementation with a focus on addressing the risks of stagflation with data driven decisions. The Fed prefers a steady course of action in the policy framework, which suggests that the Fed does not wish to ‘solve’ a structural framework like tariffs and the labor market softness with overreactions to ephemeral economic policy changes. Powell suggests that the Fed will have to use and pay attention to the data ‘as they come in” to ‘rate decisions’ in the future. The general consensus is that the Federal Reserve will maintain a steady rate policy until the beginning of 2026, while any rate changes policy will be adapted in response to the changes in the forecasts of the economy.
Concern of stagflation and its broader consequences go beyond policy issues with monetary policy and which concerns the crier, investor, and policy maker in general. The company will in turn face a constraining of its productivity by the increasing inflating price of the tariffs. The investor during these contemporary times is given the advice to pursue a more ‘active’ and ‘defensive’ approach, concentrating more on the assets and investments that will be least affected by the inflating authoritarianism and the economic lethargy. The Federal Reserve during these times will have to focus on balance, and on the counterbalance and the counterbalance of economic growth and the stability of its own is the price to pay to minimize the risks of stagflation.
Conclusion
According to economist Max Gokhman, Jerome Powell’s recent comments point to the increasing concern within the Federal Reserve regarding the possibility of stagflation becoming a danger to the U.S. economy. Though unwilling to use the phrase, Powell’s attention to the likelihood of inflation increasing while the economy simultaneously contracts is a more guarded view of monetary policy. With the economy facing sufficiently severe headwinds heading into 2026, the Federal Reserve’s modest approach intends to maintain order while maneuvering through complicated forces. All are reminded that the intricate relationship between foreign trade, inflation, and employment will remain the focal point of the U.S. economy.
#FederalReserve #STAGFLATION #JeromePowell #MonetaryPolicy #EconomicGrowthOrRisk

This is a powerful signal. He views the inflationary pressure from tariffs as temporary and not a major threat. This perspective is considered dovish because it suggests there's no urgent need for aggressive measures, such as raising interest rates, to control prices.
This dovish outlook has significant implications, especially for a volatile asset like Bitcoin:
Risk Appetite Increases: A central bank that's less concerned with inflation is less likely to raise interest rates aggressively. This makes safer investments like bonds less appealing, encouraging investors to seek higher returns in riskier assets, including cryptocurrencies. This increased flow of capital can drive up Bitcoin's price.
The Narrative Shifts: For years, a core argument for Bitcoin was its use as a hedge against inflation. A central bank willing to tolerate higher inflation might weaken this narrative. Instead of being an "inflation hedge," Bitcoin's price becomes more closely tied to the broader market's risk sentiment and overall liquidity.
Market Volatility Rises: A less rigid Fed policy introduces uncertainty. The market will react strongly to every hint and subtle change in a central banker's language, leading to sharp price swings. This volatility can make the crypto market less predictable in the short term.
Institutional Inflows: A more accommodative monetary policy—meaning lower interest rates and a focus on economic growth—can make institutions more comfortable with Bitcoin. They may see it not just as a speculative gamble but as a legitimate part of a diversified portfolio in a low-yield environment.
#EconomicGrowthOrRisk
$BTC

#FederalReserve
In a positive development for the U.S. economy, personal spending rose by 0.5% in July 2025, according to data reported by BlockBeats on August 29, 2025. This increase, which met economists' expectations, marks the strongest monthly gain since March 2025 and underscores the resilience of consumer confidence. The July figure follows a revised 0.4% increase for June, up from an initial estimate of 0.3%, highlighting a consistent upward trend in consumer expenditure.
Economic Context
Personal spending, which accounts for approximately two-thirds of U.S. economic activity, is a critical indicator of economic health. The 0.5% rise in July reflects sustained consumer demand across various sectors, including retail, services, and durable goods. This growth aligns with broader economic trends, including moderating inflation and a stable labor market, which have bolstered household purchasing power.
The revision of June's spending data from 0.3% to 0.4% further reinforces the narrative of steady economic momentum. Analysts note that the July increase, the most significant in four months, may signal a robust third quarter for the U.S. economy, potentially influencing the Federal Reserve's monetary policy outlook.
Implications for the Economy
The uptick in personal spending suggests that American consumers remain confident despite lingering economic uncertainties, such as global supply chain challenges and evolving interest rate expectations. Key drivers of the July increase include heightened spending on discretionary items, such as travel and entertainment, as well as essential goods like groceries and healthcare.
Economists view this sustained consumer activity as a positive signal for GDP growth in the coming months. However, some caution that rising spending could contribute to inflationary pressures if supply constraints persist. The Federal Reserve will likely monitor these trends closely, as personal consumption expenditures (PCE) data, a key inflation gauge, often correlate with spending patterns.
Looking Ahead
The July personal spending data highlights the strength of the U.S. consumer as a cornerstone of economic stability. As the economy navigates potential headwinds, including geopolitical uncertainties and shifts in monetary policy, consumer spending will remain a focal point for policymakers and investors alike. The Federal Reserve's next steps, particularly regarding interest rates, may hinge on whether this spending trend continues and its impact on inflation.
Conclusion
The 0.5% rise in U.S. personal spending for July 2025 reflects a vibrant consumer base and a strengthening economic recovery. With June's figures revised upward and July marking the highest monthly increase since March, the data paints an optimistic picture for the near term. As consumer behavior continues to shape the economic landscape, stakeholders will watch closely to see if this momentum carries forward into the latter half of 2025.

#USPersonalSpending #EconomicGrowthOrRisk #ConsumerConfidenc #FederalReserve