Fed cuts rates into stagflation as asset prices rise sharply

On November 2, 2025, the Federal Reserve announced a decision to cut interest rates amid ongoing stagflation, a situation characterized by stagnant economic growth and rising inflation. This move has coincided with a significant increase in asset prices across various sectors.

The Kobeissi Letter has reiterated its message to investors, emphasizing the importance of owning assets during this economic climate. The statement suggests that those who do not invest in assets may be at a disadvantage.

This development follows a series of economic challenges, as previously reported, that have raised concerns among economists and investors alike. The Fed"s actions are seen as a response to the current economic conditions, which have prompted discussions about the implications for future growth and investment strategies.

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