NOVEMBER 3, 2025 – – RATES COME DOWN 0.25 PERCENT
The Fed cut interest rates by 25 basis points last week, bringing the federal funds rate into the range of 3.75 percent to 4 percent. The decision was expected, but the surprise came from Fed Chair Jerome Powell’s remarks that a further rate cut, largely expected for December, is not guaranteed.
Regarding the December decision, Powell mentioned “conflicting views” on how to proceed at the next meeting. Rates have been reduced by half a percent in 2025, and some voting members believe it is time to pause and see what happens before taking further action.
Rates came down due to worries about the labor market, which has been slowing in recent months. The lack of government data, due to the shutdown, has created more uncertainty in the scope of the issue. The Fed has been looking at announcements by large companies and private payroll data to gauge the direction of hirings. The Fed faces the same problem measuring inflation. Powell said these complications are causing them to be guarded.