Archive · 7 Dec 2025

Fed Likely to Cut Rates Despite Inflation Concerns

Fed Likely to Cut Rates Despite Inflation Concerns

Jerome Powell, the head of the Federal Reserve, is likely to cut interest rates by a small amount this week.

This is despite some people worrying that inflation is still too high.

The decision comes after some recent economic data was delayed due to a government shutdown.

Investors are now very sure that a rate cut will happen.

After this, the Fed might wait before making more cuts in 2026.

There is also some concern about who will replace Powell as the head of the Fed, as the current frontrunner might push for more rate cuts, which could make inflation worse.

Sources