I'm Lydia Who, and this is the Fox Business Rundown.

Monday, October 27th, 2025.

We're tracking two big meetings this week.

It does seem like we're going to hammer out maybe a more, you know, longer standing trade agreement.

So maybe we can get to a framework where companies can start to fact them what their input costs are really going to be.

The Federal Reserve's two-day policy meeting kicks off tomorrow when policymakers decide whether to reduce interest rates again.

A 25 basis point cut is widely expected despite a near blackout of federal economic data due to the

ongoing government shutdown. A delayed inflation report released last week showed prices increased,

but not as much as expected leaving rate cuts on the table. Also this week, President Trump will have

a high-stakes meeting with Chinese President Xi to discuss a possible trade deal over the table. Also this week, President Trump will have a high-stakes meeting with Chinese President

Xi to discuss a possible trade deal. Over the weekend, Treasury Secretary Scott Besson said,

the countries have agreed to a basic framework and that the threat of 100 percent tariffs have gone

away. Meanwhile, we begin another week with the government shutdown, leaving many Americans without

paychecks and others, potentially, without federal food assistance. Investors will be watching

it all. The market really like the fact that we had a benign, we'll call it, inflation number

on Friday. Ryan Payne is the president of Payne Capital Management. 3% inflation, which is, you know, well about the Fed's target, but I think, you know, they've discarded their target of 2%. I don't think we're going back there. But, you know, any time you cut interest rates, right, that's stimulus for the U.S. economy, which at some point should show up in the earnings, you know, profits for companies.

And especially if think about like small companies, we've done really well here because they tend to borrow short term at short term rates.

So whatever the Fed does, they're highly affected by.

So bottom line is, yes, it's very bullish.

It's very good for small company stocks. That's one of the reasons they've been rallying so hard here. And it's, you know, look, it's like I call it economic nirvana right now. There's a lot to like when you start looking at the backdrop to invest in stocks. I mean, do you think it's so much that we're kind of casting aside the 2%

target? Or do you think it's more, you know, there's a lot of concern about the labor market?

You know, I've mixed emotions about the labor market because, yes, we haven't seen a lot of hiring,

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