But what led to this new reduction? … It was not essentially the three pressure factors mentioned above, but rather the macroeconomic data.
The value of oil, a vital element in generating high prices in production, distribution and consumption, has fallen by 19% in 2025 due to President Donald J. Trump’s economic measures.
The labor market is going through deregulation that began in mid-2024; However, large investments in industry and the technology sector predict a notable increase in hiring in the short term. Despite this, as of September 2025, almost 7.5 million jobs were available in the country’s labor market.
Another factor to take into account is the relative stability, despite the correction in recent weeks, achieved by bitcoin on its way to establishing itself as a new monetary reserve alternative worldwide, after a regulatory plan from Washington that has given it greater legal reputation.
Dollar strength and interest rates
Added to all of the above is the record value of gold, which surpassed the barrier of $4,000 per ounce and is quoted in the markets at or near that level, which has stimulated the world’s main central banks to buy the gold metal and launch hundreds of billions of dollars into the international financial market, a notable increase in liquidity that protects the dollar and the US government with a high percentage of circulation of the king currency.
Currently, the appreciation of the dollar as a reserve currency and reliable asset stands at 99%, an enviable index that demonstrates like never before the solid health of American money.
Surveys that measure consumer confidence in the US also showed signs of stability in October and with an upward trend in the coming months, when during 2025 it has remained at high levels above 95%.
While all this is happening, a handful of Democratic senators are keeping the federal budget paralyzed because they want the same level of spending and waste of taxpayer money as during the Obama-Biden era, which led the country to the worst inflation, industrial crisis, and fiscal and public crisis in the history of the United States.
The decision to reduce the reference rate by 0.25% and now place it at 3.75% and 4% was approved by ten votes in favor and two against, according to the statement from the Fed or US Central Bank.
Powell continues to see many risks, which he did not foresee in Joe Biden’s government.
“We continue to face risks,” Powell said at a news conference. “In the (monetary policy) committee’s deliberations during this meeting, there were very divergent views on how to proceed in December. A further rate cut at the December meeting is not a conclusion.”
Powell also stated that the partial shutdown of the federal government due to lack of budget agreement in Congress and caused by radical Democrats, “will affect economic activity,” but “these effects should be reversed once the paralysis ends.”
The reference rate is still at a high level and although the benefit is viable if compared to what has existed in the last three years, access, for example, to the housing market through good loans is still almost impossible for millions of potential buyers.
Nor has the charge for the use of credit cards changed. very high record interests which range according to the lender between 25% and 32%, when the average value in 2019 was 16.9%.
Paralysis continues
The burden of the closure is growing for Americans, especially on federal food aid such as the Supplemental Nutrition Assistance Program (SNAP). In several states across the country, hundreds of thousands of people who qualify will not receive these funds and in others the reserves are about to be exhausted.
In previous days, Republicans warned of possible chaos at airports due to high levels of absenteeism among employees who do not receive their salaries. But, apparently, all this is insufficient for the vote of seven Democratic senators in Congress not to be effective.
The Democrats, above the pain of the vast majority of Americans, respond to a radical left-wing sector of the population that demands a direct, firm and unlimited confrontation with President Trump’s government.
Senators have turned to satisfy this demand to save their positions in the next legislative elections in November 2026, against any harmful effects caused by the closure as part of an openly political war.
However, this does not seem to be a recommendable path for the Democratic Party in general either. Most polls reveal that in the current political struggle the left will be more affected, but the option so far is analogous to the popular phrase: “he prefers to remain one-eyed to see the other blind.”
The American Federation of Government Employees, the largest federal employee union in the country representing more than 800,000 workers, demanded that Democrats once and for all accept the Republican bill passed in the House to reopen the government.
Everett Kelley, president of the massive union, said in an open letter Monday that the best path forward was: “Reopen the government immediately under a clean continuing resolution that allows debate to continue on more important issues,” and ensure that all federal employees who have been working or furloughed under the shutdown receive back pay.
“Because when people who serve this country stand in line at food banks after losing their second paycheck because of this shutdown, they’re not looking for a partisan spin,” Kelley specified. “They are looking for the wages they have earned. The fact that they are being defrauded is a national disgrace.”
The “concern” of Democratic senators
“It is long past time for our leaders to put aside partisan politics and embrace responsible government,” he continued. “A strong America requires a government that works, that pays its bills, keeps its commitments, and treats its workers with respect by paying them on time.”
Kelly targeted left-wing extremists in particular, telling them it’s time to “stop the political game and blackmail of federal employees’ money.”
What really worries the extreme left in Congress, in this case now on the Senate floor, are the 2026 elections and that President Donald J. Trump has invested, with his own money, millions of dollars to renovate a wing of the White House.
The Pentagon confirmed Friday that it accepted an anonymous donation from a friend of President Donald J. Trump of $130 million to help pay members of the military during the government shutdown.
The Department of Defense confirmed that it accepted the donation “under its general gift acceptance authority.”
This is also questioned by the radical Democrats along with Washington’s attacks against drug boats loaded with drug caches in international waters in the Caribbean.
The offended left
The radical California senator Adam Schiff along with others like Bernie Sanders, Tim Kaine called for the cessation of hostilities in the Caribbean Sea against drug traffickers.
The radical Democrats in the US Congress they are upset and indignant because Washington ensures the safety of Americans and stops the epidemic of deaths that causes hundreds of thousands of deaths each year due to the consumption of synthetic drugs, cocaine, heroin and methamphetamines linked illegally and criminally in laboratories of international drug trafficking terrorist organizations.
Last year alone, more than 300,000 people died in the US from this drug abuse epidemic.
Trump’s tariffs are also being questioned, when the White House revealed this Monday that the US was the gold mine of many countries. The European Union charged 50% for American dairy products, Japan 700% for imported rice, and India 100% for agricultural products, among many other examples.
President Trump and his team of economic experts have been studying for months the leak of hundreds of billions of US dollars in annual tariffs and royalties to international organizations, organizations (even terrorists) and foreign governments, some staunch enemies of the United States.
The White House has also eliminated 500 million dollars from taxpayers for far-left media outlets in the United States and about 358 billion dollars for illegal immigrants’ access to the country’s public health. This is also part of the Democrats’ “great pain” added to hundreds of millions of dollars for so-called inclusivity and gender causes, the same level of spending and funding royalties as during the COVID-19 pandemic, among other issues. In total, they demand that the $1.5 trillion (trillion) dollars of the waste package they had during Joe Biden’s government be returned to them.
These are the real reasons why just 5 necessary votes (two Democrats have joined the Republicans) in the Senate maintain the sequestration of the country’s federal budget and the partial closure of the government of President Donald J. Trump and the Republicans.
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