Latest Finance-Economy News
US Consumer Confidence Declines for Fifth Straight Month
US consumer confidence edged lower in December 2025, marking the fifth consecutive monthly decline amid weak future expectations linked to recession risks. Confidence improved post-government shutdown but remains cautious.
Expectations for the next six months are at levels often associated with rising recession risk.
Fed Cuts Rates by 25 Basis Points in December
The Federal Reserve lowered interest rates by 25 basis points on December 10, 2025, setting the federal funds rate at 3.50%-3.75% in a 9-3 vote. This marks the third cut this year, with Fed Chair Powell emphasizing a cautious stance amid slowing job gains and elevated inflation.
Projections show only one more cut in 2026.
Q3 US GDP Grows at Robust 4.3% Annual Rate
Real US GDP increased at a 4.3% annualized rate in Q3 2025, surpassing expectations, driven by consumer spending on services and healthcare. This follows 3.8% growth in Q2, with exports and government spending also contributing.
Investment decreased, partly offsetting gains.
US Unemployment Rate Rises to 4.6% in November
The US unemployment rate reached 4.6% in November 2025, with 7.8 million unemployed and nonfarm payrolls adding only 64,000 jobs. Job gains occurred in health care and construction, but federal government saw losses.
Labor force participation stood at 62.5%.
Ethereum Price Drops 0.49% to $2,971.73
Ethereum fell 0.49% or $14.59 to $2,971.73 on December 23, 2025, the largest daily drop since December 17. It is down 1.63% month-to-date and 11.15% year-to-date.
The price hit an intraday low of $2,903.24.
Consumer Spending Drives Q3 GDP Surge to 3.5%
Consumer spending, accounting for 70% of US economic activity, rose 3.5% annually in Q3 2025, up from 2.5% in Q2. This fueled the overall 4.3% GDP growth despite higher inflation.
PCE inflation climbed to 2.8%, with core at 2.9%.
Fed Faces Dual Mandate Challenges with Slowing Jobs
Job gains slowed in 2025, pushing unemployment to 4.4% by September, complicating the Fed's efforts to support labor without reigniting inflation. Inflation remains above the 2% target.
The central bank is positioned to monitor evolution.
November Nonfarm Payrolls Add Modest 64,000 Jobs
Total nonfarm payroll employment rose by 64,000 in November 2025, exceeding estimates of 45,000 but signaling a jobs slowdown. Prior months' data were revised downward.
Critics describe it as a 'jobs recession' with only 100,000 added in six months.
Alphabet Shares Dip Near $300 Amid Tech Pullback
Alphabet's stock fell below $300 after hitting a $329 high in November 2025, generating $73.6 billion in free cash flow over recent quarters. It trades at 29 times trailing earnings, the second-cheapest among Magnificent Seven.
Investors urged to buy quality without timing the market.
Q3 GDP Reflects Resilience Despite Tariff Concerns
The 4.3% Q3 GDP growth indicates small economic expansion amid inflation and tariff worries. Consumer spending, exports, and government outlays drove the increase.
This outperforms FactSet's 3% forecast.
Labor Market Normalizes with Stable Job Openings
JOLTS job openings held at 7.7 million in October 2025, with consumer sentiment on job availability improving slightly. The Employment Trends Index declined due to government shutdown data delays.
Conditions remain balanced amid slowing demand.