new video uploaded: The Federal Reserve cuts interest rates for the second time this year
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The Federal Reserve cuts interest rates for the second time this year
Federal Reserve Chair Jerome Powell announced Wednesday that the Fed would cut interest rates by another quarter point, the second cut this year. Interest rates set by the Federal Reserve are now below 4 percent for the first time since the end of 2022. Powell noted that officials were divided on the cut and said another cut at the December meeting was not a “foregone conclusion.”
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My colleagues and I remain laser-focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Although some important federal government data has been delayed due to the shutdown, public and private sector data that remain available suggest that the employment and inflation outlook has not changed much since our September meeting. You can argue these positions since they cannot be directly observed. Division, then, you’re talking about moving on. In the short term, risks to inflation are tilted to the upside and risks to employment are tilted to the downside. A challenging situation. There is no risk-free path for policy as we navigate this tension between our employment and inflation goals. Our framework requires that we take a balanced approach in promoting both sides of our dual mandate.
By Jamie Leventhal
October 29, 2025
