(AURN News) — Federal Reserve Chair Jerome Powell made it clear that the Fed is treading carefully after cutting interest rates by a quarter point to a range of 3.75% to 4%. Powell said another cut in December is not a foregone conclusion. He told reporters the shutdown had delayed key government data, forcing the Fed to rely on private indicators showing slower hiring and inflation still above the 2.8% target.
Powell said the labor market is gradually cooling, while tariffs are adding temporary pressure to prices. He acknowledged deep divisions within the committee. Some members want to pause. Others want deeper cuts, but Powell said the Fed is trying to balance two risks: higher inflation and weaker job growth.
Powell also announced the Fed will stop shrinking its balance sheet in December, after reducing holdings by $2.2 trillion. Powell signaled the Fed will wait for clearer data before taking its next steps.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
