Markets await the Fed’s final 2025 decision on Dec. 9–10, with expectations of a third 0.25% rate cut amid rising uncertainty. The economy is weakening as hiring slows, layoffs rise, and prior job gains are revised down, while inflation stays above 2% due partly to Trump-era tariffs. Fed officials are split over deeper cuts, and Trump’s pressure on Powell heightens speculation ahead of 2026 about his potential future role.
