From CNBC.com: A Federal Reserve split over where its priorities should lie lowered its key interest rate Wednesday, but signaled a tougher road ahead for further reductions.
Fulfilling expectations of a “hawkish cut,” the central bank’s Federal Open Market Committee cut its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%.
However, the move carried caution flags about where policy is headed from here and featured “no” votes from three members, which hasn’t happened since September 2019.
The 9-3 vote again featured hawkish and dovish dissents – Governor Stephen Miran favored a steeper half-point reduction while regional presidents Jeffrey Schmid of Kansas City and Austan Goolsbee of Chicago backed holding the line. In Fed parlance, hawks are generally more concerned about inflation and favor higher rates while doves focus on supporting the labor market and want lower rates.
READ MORE from CNBC.com.
Federal Reserve issues #FOMC statement: https://t.co/GHW27inNE3
— Federal Reserve (@federalreserve) December 10, 2025
Fed Chair Powell: "In support of our goals and in light of the balance of risks to employment and inflation, today the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point." #FOMC pic.twitter.com/4Zmc94R3s4
— CSPAN (@cspan) December 10, 2025
President Donald Trump has railed against Federal Reserve Chairman Jerome Powell for not cutting the interest rates more and sooner, although he has stated he will not fire Powell, but will replace him when his term expires in May.
Trump originally appointed Powell as Chair in 2018, and Joe Biden renewed him for a second term in 2022.
However, while speaking at a rally in Pennsylvania Tuesday night, Trump indicated that if Powell’s renewal was signed by Biden’s autopen, it may be considered NULL AND VOID.
🚨 HOLY CRAP! President Trump reveals Jerome Powell’s reappointment to the Federal Reserve might be NULLIFIED because it was instituted by the Biden autopen – along with the other Democrat appointees
SCOTT BESSENT is now investigating.
This would be HUGE!
“All 4 [Democrat]… pic.twitter.com/bCHKDADib3
— Eric Daugherty (@EricLDaugh) December 10, 2025
Divided Fed approves third rate cut, sees slower pace ahead https://t.co/xWm0ZrwTAi
— CNBC (@CNBC) December 10, 2025
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