Bloomberg Surveillance Instant Reaction: Jay Powell on the Fed Decision
22 snips
Oct 29, 2025 
This discussion features Torsten Sløk, Chief Economist at Apollo, who delves into the complexities of labor markets and Fed policy. Michael McKee, a veteran reporter, offers insight into the evolving authority of the Fed Chair and committee dynamics. Jeffrey Rosenberg from BlackRock analyzes market risks and the impact of Fed communications on investments. Together, they explore the uncertainty surrounding a potential December rate cut and how recent job indicators and tech valuations influence economic conditions.
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December Cut Is Not Guaranteed
- Jay Powell explicitly said a December rate cut is "not a foregone conclusion."
- That phrase signaled the Fed's openness to two-sided outcomes and pulled forward market repricing.
Inflation Above Target Complicates Cuts
- Torsten Sløk highlighted that inflation remains around 3% while the labor market is only slightly cooling.
- That mix makes further cuts difficult because inflation sits well above the Fed's 2% target.
Labor Market Still Stronger Than New 'Equilibrium'
- Torsten noted recent ADP weekly data imply monthly job growth near 50,000 versus a suggested equilibrium of 30,000.
- That implies the labor market remains stronger than the Fed's revised long-run estimate.