latest news in economy
US Economy Evades 2025 Recession Despite Record Shutdown and Tariff Volatility
New York, Monday, 22 December 2025.
The U.S. successfully skirted a 2025 recession despite the longest government shutdown in history, though rising unemployment and slowing wage growth now loom over consumers entering 2026.
Historical Data Points to Potential Year-End Market Rally Amidst Volatility
New York, Monday, 22 December 2025.
As futures rise this Monday, investors await the “Santa Claus rally” beginning December 24. While history favors a 1.3% average gain, the Stock Trader’s Almanac warns that a failure to rally often signals an impending bear market.
Record Gold Prices Signal Market Anxiety Over Deficits and Fed Independence
New York, Monday, 22 December 2025.
Gold and silver prices surged to historic peaks on Monday, with the yellow metal breaching $4,400 per ounce. This rally marks a pivotal shift as investors prioritize safe havens amid ballooning global fiscal deficits and mounting political pressure on the Federal Reserve’s leadership. With geopolitical tensions escalating from Venezuela to the Middle East, the market is aggressively re-evaluating precious metals as essential monetary hedges against the deepening economic uncertainties facing 2026.
Global Tech Rally Pushes Nasdaq and Nikkei Toward Historic Year-End Milestones
New York, Sunday, 21 December 2025.
Japan’s Nikkei nears the psychological 50,000 threshold while the Nasdaq surged 1.31%, signaling robust, synchronized global momentum in the technology sector closing the week of December 19.
AI Investment Eclipses Interstate Highway System Costs as Residential Power Rates Climb
Columbus, Sunday, 21 December 2025.
Data center spending now exceeds the inflation-adjusted cost of the entire U.S. interstate highway system, straining power grids and forcing residential electricity prices upward in key markets.
AI and Power Infrastructure Projected to Fuel Global Market Growth in 2026
Boston, Sunday, 21 December 2025.
With top tech firms projecting $520 billion in capital spending, State Street identifies AI and utilities as primary 2026 growth engines, though elevated valuations demand a selective strategy.
Cleveland Fed Updates Long-Term Inflation Outlook as Data Reliability Concerns Persist
Cleveland, Sunday, 21 December 2025.
The Federal Reserve Bank of Cleveland has released its latest long-term inflation expectations, providing a crucial benchmark as markets grapple with distorted consumer price data. While the 10-year expected inflation rate stands at 2.7%, the 25-year projection remains elevated at 3.1%, signaling persistent long-term cost pressures. This release comes at a pivotal moment; the November 2025 CPI report was marred by significant data collection failures in October, prompting Fed Chair Jerome Powell to warn against over-interpreting the apparent softness in prices. For investors strategizing for 2026, the Cleveland Fed’s multi-decade outlook offers a more stable gauge of inflation risks than recent, methodologically compromised government statistics.