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1h ago

Fed Cuts Rates by Quarter Point, Keeps December Decision in Play

Powell describes a data‑dependent path, noting subprime auto delinquencies under close watch with no sign of broad credit failures.

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Overview

  • The FOMC lowered the policy rate by 0.25 percentage point to a 3.75%–4.00% target range on Oct. 29.
  • Powell said another move in December is not guaranteed and will hinge on incoming data.
  • He reported rising delinquencies in riskier auto loans, with some related losses showing up on bank balance sheets.
  • Powell said the Fed does not currently see widespread credit failures across financial institutions.
  • The policy statement and subsequent reporting highlighted divisions among officials, with persistent inflation and strong consumption tied to technological investment cited as reasons for caution.