Oct 29, 2025 Kitco News

The Federal Reserve cut its benchmark interest rate by 25 basis points to a target range of 3.75% – 4%, the lowest level since 2022. The decision passed with two dissents and marks the Fed’s second consecutive quarter-point cut. Chair Jerome Powell said the move reflected shifting risks in the economy as job growth slows and inflation remains somewhat elevated.

“There is no risk-free path for policy,” Powell said, describing a cautious approach to future easing. He stressed that “a further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it,” and confirmed “strongly differing views” within the committee on how to proceed.

Powell also announced that the Fed will end balance-sheet runoff on December 1, calling it the next phase of normalization. “We judged it appropriate at this meeting to take another step toward a more neutral policy stance,” he said.