Fed Chair Jerome Powell said that Fed staffers believe federal data could be overstating job creation by up to 60,000 jobs a month—which suggests the jobs market might be shrinking

The Federal Reserve has announced a cut in its federal funds rate, which may lead to lower mortgage rates for home buyers, sellers, and builders. This decision is seen as a potential boost for the housing market, although the exact impact will not be clear until late January.

Copper prices surged to a record high following the Federal Reserve's anticipated interest rate cut and an upgraded growth forecast for the US economy. This increase reflects heightened investor confidence in the metal's demand amid tightening supply dynamics.

On December 10, 2025, Federal Reserve Chair Jerome Powell announced a third consecutive interest-rate reduction during a special edition of Bloomberg Surveillance hosted by Lisa Abramowicz and Tom Keene. The discussion featured insights from various financial experts, including representatives from JPMorgan, Charles Schwab, and BlackRock, highlighting the implications of this monetary policy shift.

The Federal Reserve's recent meeting yielded a less-hawkish outcome than anticipated, providing relief to Asia's markets across various asset classes, according to analysts. This development is expected to positively influence investor sentiment and market stability in the region.

Asian equities experienced gains following a positive sentiment on Wall Street, driven by the Federal Reserve's recent interest rate cut and optimistic remarks from Chair Jerome Powell regarding the US economy's potential recovery as inflationary pressures from tariffs diminish.

Federal Reserve Chair Jerome Powell announced a quarter-point rate cut, attributing the current economic boom to advancements in automation and artificial intelligence, which he previously thought were unattainable. This decision comes amid a lack of recent economic data due to the government shutdown, leading to expectations of a cautious approach in future monetary policy decisions.

Top economist Diane Swonk has warned that Federal Reserve Chair Jerome Powell risks undermining the Fed's credibility by making decisions influenced by artificial intelligence and immigration factors, particularly in light of the current labor market's challenges. Swonk's analysis highlights the precarious state of the economy as it transitions into 2025, characterized by a 'low-hire, low-fire' environment.

The Federal Reserve has cut interest rates to a three-year low following a contentious meeting, marking the most significant dissent among its top officials since 2019, with three members opposing the decision. This move is seen as a response to ongoing economic challenges and inflation concerns.