Posted on 12/10/2025 1:57:54 PM PST by SeekAndFind
The Federal Reserve on Wednesday announced its third interest rate cut of the year as policymakers moved forward with the cut to support the labor market despite elevated inflation.
Fed policymakers voted to lower the benchmark federal funds rate by 25 basis points to a new range of 3.5% to 3.75%. The move follows rate cuts of that size in September and October, which were the first of the year.
Policymakers have been tracking economic data showing a slowdown in the labor market in recent months as companies adjust to shifts in trade and immigration policy. Meanwhile, inflation has trended higher as tariff-related price hikes filter through the economy.
Those dynamics have put the Fed in a difficult spot as it looks to fulfill its dual mandate goals of stable prices in line with the 2% long-run target for inflation as well as promoting maximum employment.
The Federal Open Market Committee (FOMC), which handles the Fed's monetary policy decisions, voted to cut by 25 basis points with the support of nine policymakers with three dissenters. Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid dissented in favor of leaving interest rates unchanged, while Fed Governor Stephen Miran dissented in favor of a larger 50 basis point cut.
Policymakers said in the FOMC's announcement that uncertainty remains elevated, with job gains slowing this year and the unemployment rate rising through September, while inflation has also risen over the course of the year and remains somewhat elevated.
(Excerpt) Read more at foxbusiness.com ...
So, what do we expect next year??
“The Fed funds rate is now within a broad range of estimates of its neutral value, and we are well-positioned to wait to see how the economy evolves,” Powell said.
The chairman noted that there will be a significant amount of economic data released between now and the Fed’s next policy meeting in January, which will factor into its next moves. He went on to note the data for October and November will be viewed somewhat skeptically, due to the lack of data collection during the government shutdown, but more complete data for December should be available prior to the next meeting.
I expect the stock market, gold, silver, crypto and any another hard assets to boom next year—as the dollar is devalued.
Too little and too late Powell. When does his term end? He’s been worse than Greenspan.
Boom until the bust (all except gold on that list)
All that I mentioned in my earlier post—love lower rates—as savings as an alternative place for your money becomes less attractive.
I see he confirmed he will continue to drive the bus by watching the rear-view mirror. Oh well, at least he’s predictable.
The Fed is just continuing the cutting cycle they started before the election. They stopped it when Trump was elected. And came up with numerous excuses to not cut. But Trump gets to replace Powell and others so he will gain control of the Fed in 6 months anyway. Powell is cutting so he can’t get blamed on his way out. After trying to sway the election and hurt Trump.
I thought Powell was out in January but I think its more like May.
At least Yellen is gone for now.
"It's tough to make predictions, especially about the future." ― Yogi Berra
“The future ain’t what it used to be.”
Seems strange. I mean if the economy is running great why lower rates?
Seems strange. I mean if the economy is running great why lower rates?
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We had near zero rates after the 2008 crash; and those rates were held in place for a long time (way after the economy was supposedly “fantastic”).
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