Fed Chair Jerome Powell points to rate cut, leaves door open for December easing

Federal Reserve Chair Jerome Powell signaled the central bank is set to cut interest rates today. He added that another reduction in December will depend on incoming data amid a government shutdown that delayed key economic data.

The Federal Open Market Committee (FOMC) will announce its decision at 2 p.m. ET on Wednesday. Powell’s press conference follows at 2:30 p.m. ET in Washington. Officials face limited official data because of the federal shutdown, pushing them to weigh private indicators and regional surveys more heavily.

Fed officials are not publishing updated economic projections at this meeting, making Powell’s remarks the main guide for near-term policy expectations. In recent appearances, Powell has emphasized rising employment risks and said the Fed’s focus has shifted toward supporting the labor market following its first cut of 2025 in September.

Analysts note that policymakers in September indicated quarter-point reductions were likely at both the October and December meetings. Powell is expected to avoid pre-committing to December given current data gaps. A softer September Consumer Price Index (CPI) reading and mounting job-market concerns have reinforced expectations for easing, while officials continue to debate how much further to reduce rates.

U.S. President Donald Trump criticized Fed Chair Jerome Powell for moving too slowly on rate cuts. Speaking at the APEC CEO Summit in South Korea on Wednesday, Trump dubbed him “Jerome ‘Too Late’ Powell.” He accused Powell of lagging behind European central banks, arguing it hurts U.S. business sentiment. Trump repeated calls for deeper, faster reductions – potentially 300 basis points more – to offset tariff impacts and boost growth. He also signaled his shortlist of five candidates to replace Powell when his term ends in May 2026.

Markets are cautiously positioned ahead of the FOMC decision. The broader crypto sector is down about 1.4% over 24 hours, with over $500 million in liquidations. Bitcoin is consolidating below $114,000, facing technical resistance. Meanwhile, stocks are up, fueled by Nvidia’s surge and optimism around AI.

Powell signals rate cut, leaves door open for December move