Wall Street Breakfast Fed cuts rates but Powell flips December script
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Oct 29, 2025 The Fed's decision to cut rates by 25 basis points surprises few, but Chairman Powell's hints at uncertainty for December's cuts are intriguing. Mixed market reactions follow, with stocks initially dipping but recovering later. Powell reveals differing views within the Fed and highlights a resilient labor market, shifting market odds for future rate changes. This blend of economic signals keeps investors on their toes as they navigate the complexities of monetary policy.
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Powell Tempered December Cut Expectations
- The Fed cut rates 25 bps but Powell warned December isn't a sure cut.
- That warning shifted market expectations and raised the odds of no December cut to 40%.
Fed Committee Views Are Diverging
- Powell highlighted differing views within the committee and stronger-than-expected economic signs.
- He said mixed data and a resilient labor market make a December decision uncertain.
Powell's 'Driving In A Fog' Metaphor
- Powell compared deciding in the absence of clear data to driving in a fog and said the Fed might slow down.
- That metaphor underscored the Fed's caution and influence on markets.