The chairman of the Federal Reserve Bank (Fed), Jerome Powell, stated that it is not certain that there will be a further reduction of interest rates in December.
“A further cut in the policy rate at the Fed’s December meeting is far from certain,” Powell said today (10/29/2025), after officials cut rates for the second time in a row to support a weakening labor market.
Policymakers also said they would stop reducing the central bank’s asset portfolio on December 1.
The Federal Open Market Committee voted 10-2 to cut the target for the federal funds rate by a quarter of a percentage point, to 3.75% – 4%.
The dollar rose after Powell said it was not certain the central bank would cut interest rates again at its next meeting in December.
The Bloomberg Dollar Spot Index rose as much as 0.4%, the most since Oct. 9, as the president’s remarks pushed bond yields higher. The Swiss franc and the British pound led the decliners.
“The dollar rose sharply after Powell’s statement that a December rate cut is not a given,” Bank of America Corp strategist said. Alex Cohen. “This was slightly more than the market expected and put pressure on December prices, which were almost fully priced in.”