Jerome Powell, as Federal Reserve Chair, recently commented on interest rates following the Fed's December 2025 meeting. The Fed cut its benchmark rate by a quarter percentage point to a range of 3.5% to 3.75%, marking the third consecutive cut this year.
Key Statements
Powell noted the policy stance is now at the higher end of the neutral range after these reductions, positioning the Fed well to monitor economic data before further moves. He emphasized no decisions have been made for January, highlighting a cautious approach amid risks like tariffs potentially driving inflation higher.
Economic Context
Powell described the cuts as helping stabilize the labor market while aiming for inflation to trend back toward 2% post-tariff effects. Markets reacted positively, with stocks rallying and Treasury yields falling.
