Summary of Fed Chair Powell’s Remarks – October 2025
1. Fed members hold widely differing views regarding the upcoming December meeting.
2. The absence of government data clouds the economic picture, creating a high level of uncertainty — which may be a reason to act cautiously.
3. Job growth has slowed significantly this year. The labor market is weakening, while inflation remains “somewhat elevated.”
4. The Fed still has some employment data that helps assess the condition of the labor market.
5. Inflation excluding tariffs is not far from the 2% target. Tariffs are likely to be only a one-time inflationary shock.
6. When asked about stock market valuations, Powell said the Fed does not focus on any specific asset class. He also noted that there are no signs of excessive leverage in the banking or financial system.
7. Artificial intelligence (AI) differs from the dot-com bubble era — companies are already generating real profits.
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