NOVEMBER 24, 2025 – – DECEMBER RATE CUT UNCERTAIN
With inflation holding stubbornly above the Fed’s 2 percent target, the president of the Federal Reserve Bank of Boston, Susan Collins, said she sees no strong need for another interest rate cut in December. She feels the two rate cuts since August have the central bank in a position that puts a hold on inflation without undermining the economy’s resilience.
September labor data was released last week which showed the US economy added a robust 118,000 new jobs in September, though the unemployment rate crept up marginally to 4.4 percent from 4.3 percent in August.
The Fed’s joint concerns are holding rates at a level to tame inflation and maintaining a robust labor market. Committee members are split over which issue is a greater threat: rising inflation or rising unemployment. Getting a consensus vote to change rates in December will be difficult. The lack of data for October, arising from the government shutdown, further complicates matters for the Federal Reserve. The November data will only be available after the meeting December 9-10.