Published on: 2025-12-10
The Fed's Dec meeting
10/12/2025 (Wed)
Previous: 4% Forecast: 3.75%
An interest rate cut from the Fed looks likely at its December meeting. Trump plans to announce a new Fed chair early next year; adviser Kevin Hassett is the leading contender as Jerome Powell's term ends in May.
However, recent public comments from members of the FOMC show a highly unusual degree of division. That underlines the dilemma they are facing amid cooling labour market and sticky inflation.
While Powell has been unusually clear that a December cut is not a "forgone conclusion," many analysts see good reason for a cut before 2026, though a "hawkish cut" cannot be ruled out.
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