US Federal Reserve cuts rates again but cautions another in December is far from certain

France 24Wednesday, October 29, 2025 at 10:03:00 PM
US Federal Reserve cuts rates again but cautions another in December is far from certain
The US Federal Reserve has made the decision to cut interest rates for the second time this year, bringing the Federal Funds Rate to a range of 3.75% to 4%. This move comes amid uncertainty due to the ongoing government shutdown, which has limited the data available for assessing the economy. Additionally, the Fed plans to halt the reduction of its balance sheet in December. In related news, Boeing reported a significant loss of $5.4 billion in the third quarter, primarily due to delays in the rollout of its 777X aircraft. These developments are crucial as they reflect the Fed's cautious approach to monetary policy in a turbulent economic environment.
— Curated by the World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
Boeing stock price target lowered to $275 by UBS on 777X charge
NegativeFinancial Markets
Boeing's stock price target has been lowered to $275 by UBS due to concerns over the 777X program's financial impact. This adjustment reflects ongoing challenges the company faces in delivering the aircraft, which is crucial for its future growth. Investors should pay attention to how this affects Boeing's market position and overall performance.
Emerging-Market Currencies Fall as Cautious Fed Boosts Dollar
NegativeFinancial Markets
Emerging-market currencies are facing challenges as the cautious stance from US Federal Reserve Chair Jerome Powell has strengthened the dollar, leading to reduced interest in riskier assets. This situation is significant as it highlights the ongoing impact of US monetary policy on global markets, affecting investments and economic stability in emerging economies.
Brian Moynihan warns the economy risks ‘malaise’ due to government shutdown, as deals slow and Federal workers pull back on spending
NegativeFinancial Markets
Brian Moynihan has raised concerns about a potential economic malaise stemming from the ongoing government shutdown. He warns that as deals slow down and federal workers reduce their spending, the overall economy could face significant challenges. This situation is crucial to monitor, as it highlights the interconnectedness of government actions and economic health, affecting not just federal employees but the broader market.
Radio Free Asia to suspend news operations amid government shutdown
NegativeFinancial Markets
Radio Free Asia has announced it will suspend its news operations due to the ongoing government shutdown. This is significant as it highlights the impact of political decisions on independent media outlets, which play a crucial role in providing unbiased news and information. The suspension raises concerns about the future of press freedom and access to diverse perspectives during a time when reliable news is more important than ever.
Fed winding down balance sheet contraction amid tightening money markets
NeutralFinancial Markets
The Federal Reserve is beginning to wind down its balance sheet contraction as money markets tighten. This shift is significant as it reflects the Fed's response to changing economic conditions and aims to stabilize the financial system. By adjusting its approach, the Fed is signaling its awareness of the pressures in the money markets, which could influence interest rates and overall economic growth.
Powell says eventually Fed will expand balance sheet again
NeutralFinancial Markets
Jerome Powell, the chair of the Federal Reserve, recently indicated that the central bank will eventually expand its balance sheet again. This statement is significant as it suggests a potential shift in monetary policy that could impact economic growth and inflation. Understanding the Fed's actions is crucial for investors and the economy at large, as changes in the balance sheet can influence interest rates and financial markets.
Fed cuts interest rates for second time this year amid economic uncertainty
NeutralFinancial Markets
The US Federal Reserve has cut interest rates for the second time this year, lowering them to a range of 3.75% to 4%. This decision comes amid significant economic uncertainty caused by the federal government shutdown and tariffs imposed by Donald Trump. The rate cut aims to provide some relief and stimulate economic activity during these turbulent times, highlighting the Fed's response to ongoing pressures in the economy.
Powell warns not to count on a December rate cut just yet—the Fed is extremely divided, and a further cut is ‘not a foregone conclusion. Far from it’
NeutralFinancial Markets
Federal Reserve Chair Jerome Powell has cautioned against expecting a rate cut in December, emphasizing that the Fed remains deeply divided on monetary policy. While the central bank plans to halt the reduction of its $7 trillion balance sheet, Powell clarified that this is merely a pause in quantitative tightening, not a shift towards easing. This matters because it signals that the Fed is still navigating a complex economic landscape, and decisions on interest rates will depend on various economic indicators.
Latest from Financial Markets
Senate passes bill to nullify Trump’s sweeping global tariffs on more than 100 nations – US politics live
PositiveFinancial Markets
The Senate has passed a bill to nullify former President Trump's extensive global tariffs affecting over 100 nations, with a vote of 51-47. This bipartisan effort follows earlier resolutions aimed at repealing tariffs on Canada and Brazil. The move is significant as it reflects a shift in U.S. trade policy and could enhance international relations, potentially benefiting American consumers and businesses by lowering prices on imported goods.
Globalstar stock hits 52-week high at 50.78 USD
PositiveFinancial Markets
Globalstar's stock has reached a 52-week high, hitting $50.78, which is a significant milestone for the company. This surge reflects growing investor confidence and could indicate positive future performance, making it an exciting time for shareholders and potential investors alike.
Trump Rule Could Ban Some Public Servants From Student Loan Forgiveness
NegativeFinancial Markets
A new rule proposed by the Trump administration could potentially exclude certain public servants from qualifying for student loan forgiveness. This change is significant as it directly impacts the financial futures of those who dedicate their careers to public service, making it harder for them to manage their student debt. The implications of this rule could discourage individuals from pursuing careers in essential public sectors, ultimately affecting the services that communities rely on.
Airline stocks tumble as shutdown threatens travel disruptions
NegativeFinancial Markets
Airline stocks have taken a significant hit as a potential government shutdown looms, raising concerns about travel disruptions. This situation is critical because it not only affects the financial stability of airlines but also impacts travelers who may face delays and cancellations. With the travel industry still recovering from previous challenges, this shutdown could exacerbate existing issues, making it a crucial moment for both airlines and passengers.
Earnings call transcript: Southwest Airlines' Q3 2025 earnings surprise with EPS beat
PositiveFinancial Markets
Southwest Airlines has reported an impressive earnings surprise for Q3 2025, beating expectations with a higher-than-anticipated earnings per share (EPS). This positive performance highlights the airline's resilience and effective management strategies in a challenging market, making it a significant development for investors and industry observers alike.
Earnings call transcript: GM Q3 2025 sees earnings beat and stock surge
PositiveFinancial Markets
General Motors reported a strong performance in its Q3 2025 earnings call, surpassing analysts' expectations and leading to a significant surge in its stock price. This positive outcome reflects the company's effective strategies and resilience in a competitive market, which is crucial for investor confidence and future growth.