Powell says December cut 'far from' guaranteed

Friday, October 31, 2025 at 14:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

At a high-profile Fed appearance on October 31, Chair Jerome Powell underlined that although the committee had moved to ease policy recently, any further reduction at the December meeting was not automatic. He emphasised that the path forward remains data-dependent and highlighted divergent views among policymakers. Markets immediately reacted: short-dated futures trimmed cut probabilities, front-end Treasury yields rose, and volatility in rate-sensitive sectors increased. Investors interpreted Powell’s tone as a deliberate effort to cool overly confident pricing in the market while preserving optionality. Strategists noted the statement raised the bar for future easing, making upcoming macro releases — particularly labour and inflation prints — more influential for market direction.

Overall market impact

Strong mixed market impact - strength score : 92/100

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

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Impacted instruments :

US Treasury yields

Interest-rate futures

USD FX pairs

US equities (growth vs value)

Short-dated bond ETFs

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