Drudge Retort: The Other Side of the News
Thursday, December 11, 2025

A sharply divided Federal Reserve cut interest rates on Wednesday but signaled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of a job market showing signs of softening, inflation that "remains somewhat elevated" and an economy it sees picking up steam next year.

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... "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data," the rate-setting Federal Open Market Committee said in a policy statement that was tweaked to add language that in the past has been used to signal a pause in policy actions -- an outlook at odds with market expectations still leaning toward two rate cuts in 2026.

Policymakers' refreshed estimates -- hindered by incomplete data about the economy after a six-week government shutdown - also showed they expect inflation to slow to around 2.4% by the end of next year even as economic growth accelerates to an above-trend 2.3% and the unemployment rate remains at a moderate 4.4%, an outlook that should dispel worries about potential stagflation that have persisted this year.

The wide disagreement on the appropriate policy for such an environment also showed how challenging it could be to build a consensus in a policymaking body about to experience a leadership change, with Trump expected to nominate a successor to Fed Chair Jerome Powell within the next few weeks. ...



#1 | Posted by LampLighter at 2025-12-11 01:26 AM | Reply

Pres Trump wants a more aggressive Fed board, one that will lower interest rates so that the Trump deficit has less of a cost upon the Federal budget.

Aside from the eerie smiling face on the news shows and the obsequious adulation of, and loyalty to, Pres Trump, what might the apparent front runner Dir Hassett bring to the table for a position as Fed Chairman?

Of course, the whimsical Pres Trump may, and possibly will, change his mind between now and the announcement date.




#2 | Posted by LampLighter at 2025-12-11 02:06 AM | Reply

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