SUMMARY OF FED DECISION (12/10/2025):
1. Fed cuts rates by 25 bps in 3rd rate cut of 2025
2. Fed will consider "extend and timing" of additional adjustments
3. Fed will begin purchasing US Treasury Bills on December 12th
4. Fed will buy $40 billion of US Treasury bills in 30 days
5. FOMC members Schmid and Goolsbee dissent in favor of no change
6. Fed signals rate cuts may be done for now
Fed Chair Powell may be halting rate cuts again.
SUMMARY OF FED CHAIR POWELL'S COMMENTS (12/10/25):
1. Downside risks to employment have risen
2. Inflation in the US "remains somewhat elevated"
3. Interest rates are now in a "plausible range of neutral"
4. GDP growth forecast for 2026 has been revised up
5. Readings on inflation are higher as goods inflation has "picked up"
6. Three Fed members dissented today's decision
The divide at the Fed is growing.
