Fed cuts rates again, but Powell raises doubts about easing at next meeting [View all]
Source: CNBC
Published Wed, Oct 29 2025 2:00 PM EDT Updated 2 Min Ago
The Federal Reserve on Wednesday approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December.
By a 10-2 vote, the central bank’s Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75%-4%. In addition to the rate move, the Fed announced that it would be ending the reduction of its asset purchases – a process known as quantitative tightening – on Dec 1.
Governor Stephen Miran again cast a dissenting vote, preferring the Fed move more quickly with a half-point cut. Kansas City Fed President Jeffrey Schmid joined Miran in dissenting but for the opposite reason – he preferred the Fed not cut at all. Miran is an appointee of President Donald Trump, who has pushed hard on the committee to lower rates quickly. The rate also sets a benchmark for a variety of consumer products such as auto loans, mortgages and credit cards.
The post-meeting statement did not provide any direction on what the committee’s plans are for December. At the September meeting, officials indicated the likelihood of three total cuts this year. The Fed meets once more in December.
Read more: https://www.cnbc.com/2025/10/29/fed-rate-decision-october-2025.html
Article updated.
Previous article/headline -
Fed cuts rates for the second time this year, will end balance sheet run-off in December
The Federal Reserve on Wednesday approved its second straight interest rate cut, a widely expected move that came despite little recent visibility on the economy due to the government shutdown.
By a 10-2 vote, the central bank's Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75%-4%. In addition to the rate move, the Fed announced that it would be ending the reduction of its asset purchases - a process known as quantitative tightening - on Dec 1.
Governor Stephen Miran again cast a dissenting vote, preferring the Fed move more quickly with a half-point cut. Kansas City Fed President Jeffrey Schmid joined Miran in dissenting but for the opposite reason - he preferred the Fed not cut at all. The rate also sets a benchmark for a variety of consumer products such as auto loans, mortgages and credit cards.
The post-meeting statement did not provide any direction on what the committee's plans are for December. At the September meeting, officials indicated the likelihood of three total cuts this year. The Fed meets once more in December.
Original article -
The Federal Reserve on Wednesday approved its second straight interest rate cut, a widely expected move that came despite little recent visibility on the economy due to the government shutdown.
In addition to the rate move, the Fed announced that it would be ending the reduction of its asset purchases - a process known as quantitative tightening - on Dec 1. By a 10-2 vote, the central bank's Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75%-4%.
Governor Stephen Miran again cast a dissenting vote, preferring the Fed move more quickly with a half-point cut. St. Louis Fed President Jeffrey Schmid joined Miran in dissenting but for the opposite reason - he preferred the Fed not cut at all. The rate also sets a benchmark for a variety of consumer products such as auto loans, mortgages and credit cards. The reduction came even though the Fed essentially has been flying blind lately on economic data.
Other than the consumer price index release last week, the government has suspended all data collection and reports, meaning such key measures as nonfarm payrolls, retail sales and a plethora of other macro data is unavailable.
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