Wednesday, December 10, 2025

Monetary Policy and Interest Rate Outlook

Fed Cuts Rates by Quarter Point, Signals It May Be Done for Now
https://www.wsj.com/economy/central-banking/fed-cuts-rates-again-signals-it-may-be-done-for-now-67069bb5
Stalled progress on inflation and a cooling job market made for one of the most divided Fed policy meetings in years.
 
Fed Cuts Rates Again, but Is Divided Over Future Moves
https://www.nytimes.com/2025/12/10/business/economy/fed-meeting-interest-rate-decision.html
Jerome Powell said officials would watch how the economy evolves and “haven’t made any decision about” cutting rates at their next meeting. 

Just How Divided Is the Fed?
https://www.morningstar.com/economy/just-how-divided-is-fed
Central bankers were far from achieving a consensus, even as the FOMC cut interest rates for the third time in 2025.


Powell bets big on productivity boost rescuing boxed-in Fed
https://www.reuters.com/markets/us/powell-bets-big-productivity-boost-rescuing-boxed-in-fed-2025-12-11/
Federal Reserve Chair Jerome Powell admitted on Wednesday that there is still no "risk-free" path for the central bank as it seeks to bring down stubbornly high inflation while also supporting an increasingly creaky labor market. But he suggested the Fed might have a "get-out-of-jail-free" card: higher productivity.

 
Related:
https://www.wsj.com/economy/jobs/fed-chair-jerome-powell-says-u-s-may-be-drastically-overstating-jobs-numbers-741c635d