Potential Fed Rate Cuts, Policy-Driven Investments Raise Bubble Concerns

With the Federal Reserve signaling upcoming interest rate cuts and both the White House and private sector ramping up investment in strategic areas, concerns over a potential asset bubble are gaining traction among economists and market analysts.
Wall Street has shrugged off numerous headwinds since the trade-driven selloff in April. U.S. stocks continue to register fresh all-time highs amid higher tariffs, cooling employment conditions, sticky inflation, and volatile geopolitics.
Fueled by strong corporate earnings and heightened optimism surrounding artificial intelligence, the broader S&P 500 and the tech-heavy Nasdaq Composite Index have risen more than 10 percent and 12 percent year to date, respectively. The blue-chip Dow Jones Industrial Average has climbed about 8 percent….