Fed Chair Powell signals December cut is uncertain

Wednesday, October 29, 2025 at 21:15 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

Following the rate decision, Federal Reserve Chair Jerome Powell addressed questions from markets and the press, noting that while the October cut was warranted based on recent data, the path forward — including whether a further reduction happens in December — is not preordained. His calibrated language reduced some of the binary positioning in futures markets that had priced nearly certain additional cuts. Investors interpreted Powell’s stance as a reminder that future easing depends on incoming inflation and labour data; as a result, short-term volatility in rates and FX rose as market participants rebalanced conditional probabilities. The dialogue underscored the Fed’s careful communication posture: provide stimulus where necessary, but avoid locking markets into predetermined expectations.

Overall market impact

Strong mixed market impact - strength score : 86/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

Interest rate futures

Short-dated Treasuries

Volatility instruments

Bank equities

FX (USD)

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