Fed Chair Powell Cautions Against Expecting a December Rate Cut

Core Points - The committee has decided to lower the target range for the federal funds rate by 0.25 percentage points to a range of 2.75% to 4% [1] - Labor market conditions are gradually cooling, while inflation remains elevated [1] - The ongoing federal government shutdown is expected to negatively impact economic activity, but these effects are anticipated to reverse once the shutdown concludes [1] Economic Indicators - Data indicating a strengthening or stabilization of the labor market will influence future decisions regarding the federal funds rate [2] - There are differing opinions within the committee about the approach to take in December, indicating uncertainty about further rate reductions [2] - A reduction in the policy rate at the December meeting is not guaranteed [2]