Following Federal Reserve Chairman Jerome Powell's speech, the following conclusion was reached:
The Federal Reserve reduced its interest rate to a range of 3.75% to 4% in October 2025, but left open the possibility of another cut in December.
Here is a clear and concise summary of what was agreed upon after the Fed's last meeting:
🏦 Main Decision
The Fed reduced its interest rate by 25 basis points, placing it in a range of 3.75% to 4%, the lowest level in three years.
This was the second rate cut of the year, in a context of economic slowdown and a weak labor market.
📉 Economic Context
The cut occurred without recent official employment data, due to the partial shutdown of the U.S. government, which forced the Fed to make decisions with limited information.
Federal Reserve Chairman Jerome Powell adopted a moderately dovish tone, acknowledging the growing risks in the labor market.
🔮 Future Outlook
There is no consensus on another rate cut in December. Powell stated that there are very divergent opinions within the Committee.
The Federal Reserve maintains a cautious stance, assessing whether inflation continues to decline without jeopardizing employment.
🗳️ Vote
The decision was approved with 10 votes in favor and 2 against, reflecting some internal division regarding the direction of monetary policy.