Powell warns not to count on a December rate cut just yet—the Fed is extremely divided, and a further cut is ‘not a foregone conclusion. Far from it’

Core Points - Federal Reserve Chair Jerome Powell indicated that another rate cut in December is not guaranteed, highlighting differing views among Fed governors regarding inflation risks and labor market conditions [1][2] - The Fed has reduced its benchmark interest rate by 0.25 percentage points to a range of 3.75% to 4%, citing cooling labor conditions and persistent inflation [2] - Powell noted that while inflation has decreased from 2022 highs, recent price pressures in goods categories have emerged, leading to an upward tilt in near-term inflation risks [3] - The Fed plans to end its balance sheet runoff, concluding "quantitative tightening" on December 1, after reducing its securities holdings by $2.2 trillion over the past three and a half years [4] - Powell emphasized that the Fed will remain data-dependent and is prepared to respond to economic developments without a preset policy course [5]