Marketplace All-in-One Why the Fed cut interest rates
Dec 11, 2025
Nancy Marshall-Genzer, a Marketplace correspondent and Fed expert, dives into the recent Federal Reserve interest rate cut. She explains the divided votes and hawkish concerns about inflation. Topics include the impact on consumer loans, with clear warnings about predatory refinancing offers. Nancy also discusses potential successors for Jerome Powell, revealing contenders and the limitations of Federal influence. The insights offered highlight the interplay between politics and monetary policy, making it a fascinating listen for anyone interested in economic trends.
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Fed Split Over Uncertain Data
- Fed officials were split because economic data are uncertain and could justify either more cuts or none at all.
- Jerome Powell said uncertainty makes it possible to argue for multiple paths on rates.
Jobs Data Are Routinely Revised
- BLS jobs data have systematic overcounts that get corrected periodically, complicating real-time readings of job growth.
- The Fed recognizes those revisions and factors them into its decisions about cuts.
Fed Relies On Regional Intelligence
- The Fed uses private data, regional Fed contacts, and the Beige Book to supplement official statistics when setting policy.
- Officials felt their current stance allows them to pause and watch the economy evolve after three cuts.