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transcript
Fed Cuts Interest Rates for Second Time This Year
Fed Chair Jerome Powell announced that the Federal Reserve would cut interest rates by another quarter point on Wednesday, the second cut this year. Interest rates set by the Fed are now below 4 percent for the first time since late 2022. Mr. Powell noted that officials were divided on the cut, and said that another cut at the December meeting was not a “foregone conclusion.”
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My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Although some important federal government data have been delayed due to the shutdown, the public and private sector data that have remained available suggests that the outlook for employment and inflation has not changed much since our meeting in September. You can argue these positions since it can’t be directly observed. Division, then, you’re talking about going forward. In the near term, risks to inflation are tilted to the upside and risks to employment to the downside. A challenging situation. There is no risk-free path for policy as we navigate this tension between our employment and inflation goals. Our framework calls for us to take a balanced approach in promoting both sides of our dual mandate.
By Jamie Leventhal
October 29, 2025
