• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Bankingjerome powell

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’

By
Eva Roytburg
Eva Roytburg
Fellow, News
Down Arrow Button Icon
By
Eva Roytburg
Eva Roytburg
Fellow, News
Down Arrow Button Icon
October 29, 2025, 3:09 PM ET
US Federal Reserve Chair Jerome Powell speaks during a press conference at the end of a Monetary Policy Committee meeting in Washington, DC, on October 29, 2025. The US Federal Reserve on Wednesday announced its second consecutive quarter-point rate cut to bolster the flagging labor market, unveiling a decision that highlighted the growing division in its ranks. (Photo by Jim WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
Federal Reserve Chair Jerome Powell during a press conference at the end of a monetary policy committee meeting in Washington, D.C., on Oct. 29, 2025. Jim WATSON—AFP/Getty Images

Federal Reserve Chair Jerome Powell cautioned markets on Wednesday not to assume another rate cut is guaranteed in December, saying the Fed governors had “strongly differing” views on how to proceed amid rising inflation risks and a softening labor market. 

Recommended Video

“A further reduction in the policy rate at the December meeting is not a foregone conclusion—far from it,” Powell said during his post-meeting press conference.

The Fed cut its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, citing cooling labor conditions and still-elevated inflation. 

Powell described the decision as a “step toward a more neutral policy stance,” but emphasized—as he does often—that there is “no risk-free path” forward. 

While inflation has fallen sharply from its 2022 highs, Powell noted that price pressures have recently picked up in goods categories, partly owing to higher tariffs. The Fed now sees near-term inflation risks tilted to the upside even as job market momentum fades.

“Conditions in the labor market appear to be gradually cooling,” he said, adding that “downside risks to employment have increased in recent months.”

Some officials on the Federal Open Market Committee worry further easing could reignite inflation, while others fear keeping policy too tight could tip the economy into a sharper slowdown.

“The risks are to the upside for inflation and to the downside for employment,” Powell said. “You can’t do both of those at once with one tool.”

The Fed also announced plans to end the runoff of its balance sheet—ending what’s called “quantitative tightening”—as of Dec. 1, after shrinking its securities holdings by $2.2 trillion over the past three and a half years. Powell said recent pressures in money markets indicate the system has reached “ample reserve” conditions.

For now, Powell stressed, the Fed will stay data-dependent.

“We remain well positioned to respond in a timely way to potential economic developments,” he said. “Policy is not on a preset course.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
By Eva RoytburgFellow, News

Eva is a fellow on Fortune's news desk.

See full bioRight Arrow Button Icon

Latest in Banking

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Banking

Top CD rates from big banks for March 2, 2026
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on March 2, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Danny BakstMarch 2, 2026
5 hours ago
greenspan
EconomyFederal Reserve
’90s nostalgia seizes the Fed and White House as Warsh and Trump see AI as an internet-style productivity boom
By Paul Wiseman and The Associated PressMarch 2, 2026
5 hours ago
Europedigital transformation
Why Europe can lead in trusted, industrialized AI
By Dave McCannMarch 2, 2026
6 hours ago
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on March 2, 2026
By Glen Luke FlanaganMarch 2, 2026
7 hours ago
Middle EastUAE
UAE stock markets to close for two days amid Iran strikes
By Sherif Tarek, Omar Tamo, Farah Elbahrawy and BloombergMarch 1, 2026
19 hours ago
EconomyFinance
Ray Dalio, Scott Bessent and House members from both sides of the aisle are rallying around a ‘3% solution’ to tame the out of control national debt
By Shawn TullyMarch 1, 2026
1 day ago

Most Popular

placeholder alt text
Economy
Your grandparents are the reason the U.S. isn't in a recession right now. That won't last forever
By Eleanor PringleMarch 1, 2026
1 day ago
placeholder alt text
Success
MacKenzie Scott's close relationship with Toni Morrison long before Amazon put Scott on the path to give more than $1 billion to HBCUs
By Sasha RogelbergMarch 1, 2026
1 day ago
placeholder alt text
Middle East
U.S. military gives Iran a taste of its own medicine with cheap copycat Shahed drones, while concern shifts to munitions supply in extended conflict
By Jason MaMarch 1, 2026
22 hours ago
placeholder alt text
Middle East
As Iran attacks Dubai, the tax-free haven for the global elite could see 'catastrophic' fallout — 'this can also send shockwaves globally'
By Jason MaMarch 1, 2026
1 day ago
placeholder alt text
AI
American schools weren’t broken until Silicon Valley used a lie to convince them they were—now reading and math scores are plummeting
By Sasha RogelbergMarch 1, 2026
22 hours ago
placeholder alt text
Health
Gen Z men are eating ‘boy kibble,’ the human equivalent to dog food, to load up on protein cheaply
By Jake AngeloMarch 1, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.