Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Further Rate Cut in December 'Far' From Certain, Fed Chair Powell Says

BY MT Newswires | ECONOMIC | 10/29/25 02:48 PM EDT

02:48 PM EDT, 10/29/2025 (MT Newswires) -- After rate reductions at the last two Federal Open Market Committee meetings, a further reduction at the next meeting in December is not guaranteed due to double-sided risks and divergent opinions on the path of monetary policy, Federal Reserve Chairman Jerome Powell said Wednesday in a press conference after the FOMC meeting.

"In the Committee's discussions at this meeting, there were strongly differing views about how to proceed in December," Powell said. "A further reduction in the policy rate at the December meeting is not a forgone conclusion. Far from it. Policy is not on a preset course."

The FOMC voted to lower the target for its federal funds rate to 3.75% to 4.00%, with two dissents. Fed Governor Stephen Miran as expected wanted the FOMC to lower the target range by 50-basis points, while Kansas City Fed President Jeffrey Schmid wanted no rate reduction.

Additionally, the FOMC said that it intends to end the reduction of its securities holdings, or quantitative tightening, on Dec. 1.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article