'Too Late' Powell Issues Second Interest Rate Cut

The Fed has made another interest rate cut today, this time by another 25 basis points, to 3.75 to 4.00 percent.

🚨BREAKING — The Fed has made their SECOND interest rate cut of the year, by 25 basis points. pic.twitter.com/8n2pyjSVy6
— Townhall.com (@townhallcom) October 29, 2025

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months.
In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee decided to conclude the reduction of its aggregate securities holdings on December 1. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

Back on September 17, "Too Late" Jerome Powell issued the first interest rate cut, also of 25 basis points.

The Fed rejected a larger cut requested by President Trump, probably driven by the Schumer Shutdown, and the economic uncertainty it's driving. Another member of the Fed, Stephen Miran, also wanted a larger cut of 50 basis points, while another dissenter, Jeffrey Schmid, voted for no change.

🚨CLOSE, NOT QUITE.

David Asman: "I think we see inflation slowing, certainly not increasing like people thought because of the tariffs. But I do believe ... because...some of the job market statistics before the shutdown looked weak, we need another cut in December." https://t.co/NfsAepsFh6 pic.twitter.com/y90OYUIu5R
— Townhall.com (@townhallcom) October 29, 2025

Here's more from The Financial Times:

The Federal Reserve has said it will halt its effort to shrink its balance sheet in December as it cut rates by a quarter point, in a bid to ease borrowing conditions amid concerns about the US labour market.
The central bank’s decision to call time on its three-year quantitative tightening programme comes after concerns that QT [Quantitative Tightening] has disrupted short-term lending markets and threatened to push up banks’ funding costs.

In a press conference, Powell cited a "lack of data during the shutdown" but noted that "private-sector data suggest there has not been much change to the economy" since its September meeting. He also noted the Schumer Shutdown would "weigh on economic activity" but remained optismistic that would reverse once the government reopens.

"Higher tariffs are pushing up prices in some category of goods," Powell said, adding that the impacts of tariffs would be "short-lived" and likely a one-time thing.

Powell added that the labor market is "less dynamic and somewhat softer" than in September, an indication that future rate cuts may happen. Powell warned a December rate cut is not a "foregone conclusion," however. He reiterated that the goals of the Fed and this administration are to bring inflation down to the goal of two percent while maximizing employment.

🚨 BREAKING: The Federal Reserve CUTS INTEREST RATES for the second time in 2025

Rates are being cut by 25 basis points, now at 3.75%-4%

Too Late Jerome Powell is BEHIND where the rates should be, but it's a start.

Good thing President Trump gets a new Fed Chair soon! pic.twitter.com/MWlPW388we
— Eric Daugherty (@EricLDaugh) October 29, 2025

Markets didn't respond dramatically to the news. The S&P 500 dropped 0.3 percent after the news broke while the Dow remained steady.

Editor’s Note: The Schumer Shutdown is here. Rather than put the American people first, Chuck Schumer and the radical Democrats forced a government shutdown for healthcare for illegals. They own this.

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