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Fed's Powell says rate policy well positioned, future of policy not on pre-set course

BY Reuters | ECONOMIC | 12/10/25 02:51 PM EST

By Michael S. Derby

Dec 10 (Reuters) - Federal Reserve Chairman Jerome Powell said U.S. central bank interest rate policy is well positioned to respond to what lies ahead for the economy, declining to provide guidance whether another interest rate cut lies in the near future.

"I would note that having reduced our policy rate by 75 basis points since September and 175 basis points since last September, the fed funds rate is now within a broad range of estimates of its neutral value and we are well positioned to wait to see how the economy evolves," Powell said. He added, "monetary policy is not on a preset course, and we will make our decisions on a meeting by meeting basis."?

(Reporting by Michael S. Derby)

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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.

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