Zacks Investment Management

The shutdown directly impacts up to 900,000 Federal employees, plus millions who depend on government agency services. However, the effect on the market will likely be more muted.

The Fed cuts rates but mortgage rates may not benefit, 401(k) catch-up contribution rules changing in 2026, global business activity still expanding.

Although many investors are more bullish as 2025 closes, a number of worries remain—including inflation, Fed independence, dollar stability, crowded trades, and rising yields.

After September’s rate cut, the debate is on. Some predict a cut at every remaining meeting this year, while others think the Fed will be more cautious. Read on to get Mitch’s perspective.

The 25-point rate cut was not a surprise, but is welcome relief. However, policy uncertainty and weak job growth mean continued volatility, even as Q3 earnings offer encouragement.