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’

FortuneWednesday, October 29, 2025 at 7:09:12 PM
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’
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.
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