US Federal Reserve Chair Jerome Powell speaks at a news conference at the Federal Reserve headquarters, following the Federal Open Market Committee (FOMC) meeting in Washington, DC, on Sept. 17, 2025.Jim Watson | AFP | Getty ImagesThe Federal Reserve on Wednesday approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December.By a 10-2 vote, the central bank’s Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75%-4%. In addition to the rate move, the Fed announced that it would be ending the reduction of its asset purchases – a process known as quantitative tightening – on Dec 1.Governor Stephen Miran again cast a dissenting vote, preferring the Fed move more quickly with a half-point cut. Kansas City Fed President Jeffrey Schmid joined Miran in dissenting but for the opposite reason – he preferred the Fed not cut at all.The rate also sets a benchmark for a variety of consumer products such as auto loans, mortgages and credit cards. The post-meeting statement did not provide any direction on what the committee’s plans are for December. At the September meeting, officials indicated the likelihood of three total cuts this year. The Fed meets once more in December.Chair Jerome Powell, however, cautioned against assuming that a rate cut is a sure thing at the next meeting. Traders had been pricing in about an 85% probability of a reduction, according to the CME Group’s FedWatch.”In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell said during his post-meeting news conference. “A further reduction in the policy rate at …
