Economic Conditions in the USA: An October-2025 Review

USA Economic News

Federal Reserve Signals Potential Interest Rate Cuts Amid Weak Jobs Data Economic forecasts from multiple institutions, including Comerica, indicate the Federal Reserve is poised to cut its federal funds target rate again at its late October and December meetings. This expected move is a direct response to a weak jobs report and downward revisions to employment data, suggesting the labor market is cooling faster than anticipated, prompting the Fed to ease monetary policy.

2026 Social Security COLA Announced at 2.8% The Social Security Administration has announced the cost-of-living adjustment (COLA) for 2026, which will be 2.8 percent. This increase will result in an average monthly benefit boost of about $56 for recipients. The 2.8% COLA reflects inflation rates over the past year and is a critical economic update for millions of seniors and other beneficiaries.

Boeing Defense Workers Strike in Midwest After Rejecting Contract Offer Thousands of Boeing defense workers in the Midwest are now on strike after union members overwhelmingly rejected the company’s latest contract offer. The strike is expected to impact production lines for several key defense projects. Union leaders state the primary sticking points are wages, retirement benefits, and job security.

Government Shutdown Poses "Headwind" for Q4 GDP Growth Economists are warning that the ongoing government shutdown is creating a significant "headwind" for the U.S. economy. Analysts project that each week of the shutdown could shave 0.1 to 0.2 percentage points from annualized Q4 GDP growth. The impact is felt through the loss of productivity from furloughed federal workers and reduced government spending.