Key Takeaways
- President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell, threatening a "major lawsuit" over alleged "grossly incompetent" management of Fed building renovations and demanding immediate interest rate cuts.
- The cryptocurrency market experienced a significant downturn, with Bitcoin hitting a seven-month low below $90,000, triggering substantial declines in crypto-related stocks such as Coinbase Global (COIN), Bitfarms (BITF), and MicroStrategy (MSTR).
- The U.S. Department of Energy (DOE) announced ambitious plans to construct and own up to 10 new nuclear reactors, aiming to bolster domestic energy independence and quadruple nuclear electricity production by 2050.
- The United States and Saudi Arabia finalized $270 billion in new agreements and sales, including a major defense package featuring advanced F-35 fighter jets and increased Saudi investment commitments in the U.S.
- Bets on a December Federal Reserve rate cut were significantly pared back, partly due to market uncertainty exacerbated by the cancellation of a key jobs report by the Bureau of Labor Statistics (BLS).
President Donald Trump has intensified his pressure on Federal Reserve Chair Jerome Powell, publicly criticizing his handling of the central bank's headquarters renovation and reiterating calls for substantial interest rate reductions. Trump labeled Powell "grossly incompetent" regarding the Fed's construction costs, which he claimed ballooned to $3 billion for a project that should have been a fraction of that amount, and stated he is "considering allowing a major lawsuit" against Powell to proceed. The President also asserted that interest rates are "too high," advocating for cuts "bigger than he had in mind" and suggesting rates should be at 1% or lower to stimulate the economy.
Meanwhile, the cryptocurrency market faced significant headwinds, with Bitcoin plummeting to a seven-month low, briefly dipping below $90,000. This downturn led to a ripple effect across crypto-exposed stocks, with Coinbase Global (COIN) falling by 4.9%, Bitfarms (BITF) down 7.5%, and MicroStrategy (MSTR) slipping 10.3%. The market volatility is attributed to lingering doubts over future U.S. rate cuts and accelerating outflows from U.S. spot Bitcoin ETFs.
In a separate development impacting economic forecasts, expectations for a December Federal Reserve rate cut have been significantly reduced. This shift in market sentiment follows a period of limited economic data availability, including the cancellation of a crucial jobs report by the Bureau of Labor Statistics (BLS). Analysts suggest that the uncertainty surrounding labor market conditions, coupled with mixed signals from other private-sector data, has made a December rate cut less certain.
On the energy front, DOE Chief Coe announced aggressive plans for the U.S. to build and own up to 10 new nuclear reactors. This initiative is part of a broader strategy to expand domestic nuclear capacity, with the administration aiming for 10 large reactors under construction by 2030 and a quadrupling of nuclear electricity production by 2050. The Department of Energy has already selected 11 projects for a pilot program to fast-track advanced reactor deployment, with a goal to achieve criticality for at least three test reactors by July 4, 2026.
Internationally, President Trump confirmed that $270 billion in agreements and sales are being signed between dozens of companies today, primarily stemming from a U.S.-Saudi investment conference. These landmark deals include a major defense package, with the U.S. working on approving the sale of advanced F-35 fighter jets to Saudi Arabia, a move that could significantly bolster the Kingdom's defense capabilities and deepen the strategic alliance between the two nations. Saudi Arabia has also increased its investment commitments in the U.S. to nearly $1 trillion.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.