The Federal Reserve is expected to reduce interest rates in 2025, despite stock markets reaching record highs. This decision is influenced by a sluggish labor market, with only 22,000 jobs added in August 2025 and an unemployment rate of 4.3%. Wealth inequality is also a concern, as the poorest 50% of households hold just 2.5% of total wealth, while the top 10% control about 67%, primarily through stock ownership. The Buffett Indicator, which measures GDP against total market value, indicates that the market is "strongly overvalued" at 217% as of August 2025. These factors underscore the challenges facing economic policy, highlighting the need for strategies that address both financial markets and broader societal issues.