Live Updates: Fed Rate Cut Decision Nears in Last Meeting of 2025

Powell has said the Fed's cautious strategy this year stems from uncertainty over President Donald Trump's fast-changing tariff policies and stubborn inflation rates. The job market, meanwhile, has had a rocky 2025.
Business Insider has heard from frustrated job seekers at all levels of the career ladder, particularly those feeling pushed out of white collar roles. This past summer, the number of Americans looking for work eclipsed the number of vacancies, though the unemployment rate itself is still relatively low.
Powell has said the Fed's cautious strategy this year stems from uncertainty over President Donald Trump's fast-changing tariff policies and stubborn inflation rates. The job market, meanwhile, has had a rocky 2025.
Business Insider has heard from frustrated job seekers at all levels of the career ladder, particularly those feeling pushed out of white collar roles. This past summer, the number of Americans looking for work eclipsed the number of vacancies, though the unemployment rate itself is still relatively low.
"There is no risk-free path for policy as we navigate this tension between our employment and inflation goals," Powell said in October, adding, "Ultimately, lower rates will support more demand, and that'll support hiring over time. And, of course, we also have to be careful about this."
US stock futures are virtually unmoved as of just before 6:20 a.m. ET. Futures for all three of the Dow Jones, the Nasdaq, and the S&P 500 have moved less than 0.1% lower so far in this morning's trading.
There's a little more movement in European stocks, though nothing too drastic. Britain's benchmark, the FTSE 100, is up 0.2% on the day to 9,660, while Germany's DAX is 0.5% lower.
US stock futures are virtually unmoved as of just before 6:20 a.m. ET. Futures for all three of the Dow Jones, the Nasdaq, and the S&P 500 have moved less than 0.1% lower so far in this morning's trading.
There's a little more movement in European stocks, though nothing too drastic. Britain's benchmark, the FTSE 100, is up 0.2% on the day to 9,660, while Germany's DAX is 0.5% lower.
Away from stocks, the US dollar index is around 0.4% lower. The gold price is 0.3% down at roughly $4,200 per ounce.
Fed leaders have kept monetary policy moderately restrictive in recent months, holding rates steady until September before introducing two quarter-point cuts.
Chair Jerome Powell said in the last meeting that a rate change in December is "not a foregone conclusion, far from it" and "policy is not on a preset course," though on Wednesday morning, CME FedWatch is showing a roughly 90% chance of another quarter-point reduction.
Fed leaders have kept monetary policy moderately restrictive in recent months, holding rates steady until September before introducing two quarter-point cuts.
Chair Jerome Powell said in the last meeting that a rate change in December is "not a foregone conclusion, far from it" and "policy is not on a preset course," though on Wednesday morning, CME FedWatch is showing a roughly 90% chance of another quarter-point reduction.
Investors and consumers are hopeful for more cuts. Americans could see more affordable mortgage, auto, and credit card rates in the new year, and businesses would be able to borrow money more easily — a move that could juice the sluggish job market.