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The Federal Reserve on Wednesday voted to lower interest rates again, the second straight month the central bank eased monetary policy after months of pressure and criticism from President Donald Trump, who has called for steeper cuts. Some policymakers have expressed caution about lowering rates further, while President Donald Trump and his recent appointee have pushed for steep cuts. Copyright 2025 The Associated Press. All rights reserved. The Federal Open Market Committee voted 10-2 in favor of easing interest rates by a quarter-point to between 3.75% and 4%, down from the 4% to 4.25% range policymakers opted for during the FOMC’s meeting last month. Will The Fed Lower Interest Rates Again? Investors are favoring an additional quarter-point reduction to interest rates at the FOMC’s last meeting in December, potentially lowering rates to between 3.5% and 3.75%, according to CME’s FedWatch tool. In its meeting last month, Fed officials appeared to be divided over whether to cut rates for a third time this year. It’s unclear when the Fed will have insight into the U.S. economy’s health, however, as an ongoing federal government shutdown has postponed reports on inflation and unemployment. In a speech to the Council on Foreign Relations earlier this month, Fed Governor Christopher Waller said he supported the FOMC’s decision to ease monetary policy, indicating his focus had shifted to a “softening” labor market instead of inflation. Waller said that, because policymakers “don’t know which way the data will break on this conflict,” the FOMC would “need to move with care” when adjusting interest rates. Waller noted he has spoken with “business contacts” to form his outlook on the economy while a data blackout continues. Reports released from several firms and economists in recent weeks suggest the labor market has continued to deteriorate, suggesting the FOMC could have data to support an additional cut. What To Watch For Whether Trump names his pick to succeed Fed Chair Jerome Powell, whose term expires in May 2026, by the end of the year. Treasury Secretary Scott Bessent on Monday said five candidates are under consideration for the role, including Fed governors Waller, Michelle Bowman, former Fed governor Kevin Warsh, National Economic Council Director Kevin Hassett and BlackRock executive Rick Rieder. Bessent said he would present a list of candidates to Trump shortly after Thanksgiving. Further Reading ForbesFed Divided On Additional Interest Rate Cuts—‘About Half’ Favor Two More This Year, Minutes ShowBy Ty Roush ForbesConsumer Confidence Hits Seven-Month Low—Government Shutdown A ‘Key Concern,’ Survey SaysBy Ty RoushForbesFed Lowers Interest Rates And Signals More Cuts This YearBy Ty Roush Got a tip? Share confidential information with Forbes. Editorial StandardsReprints & Permissions
