Fed Cuts Interest Rates in Divided Vote (Connecting the Dots: The Federal Reserve, Jerome Powell, The Carlyle Group, The Economic Club of Washington, The Commercial Club of Chicago, Austan Goolsbee, Letitia James & Soros Funding, All Networking)
Policymakers
cut rates by a quarter point, citing a slowing job market. Three officials
dissented on differing grounds.
The
Epoch Times
Andrew
Moran
12/10/2025|Updated:
12/10/2025
The Federal
Reserve followed
through on a widely expected interest rate cut at its final policy meeting of
2025, but the Dec. 10 decision was marked by sharp dissent among officials.
Members
of the Federal Open Market Committee voted 9–3 to lower the benchmark federal funds rate
by a quarter point to a new target range of 3.5 percent to 3.75 percent.
“Available
indicators suggest that economic activity has been expanding at a moderate
pace,” the Fed said in a statement.
“Job gains have slowed this year, and the unemployment rate has edged up
through September. The recent indicators are consistent with these
developments. Inflation has moved up since earlier in the year and remains
somewhat elevated.”
Member
of the Fed Board of Governors Stephen Miran voted to lower the policy rate by a
half-point. Federal Reserve Bank of Chicago President Austan
Goolsbee
and Federal Reserve
Bank of Kansas City President Jeffrey Schmid supported no rate change.
Although
investors overwhelmingly penciled in the third consecutive reduction, there had
been widening divergence among monetary policymakers heading into the meeting.
This is
the first time since September 2019 that three members dissented—and for
similar reasons. In 2019, then-Federal Reserve Bank of St.
Louis
President James
Bullard wanted a half-point rate cut, while then-Federal
Reserve Bank of Kansas City President
Esther George and then-Federal Reserve Bank of Boston President Eric Rosengren preferred
to leave rates unchanged.
Fed Chairman Jerome Powell, speaking to reporters at the post-meeting news
conference, said the rate cut decision was a “close call.”
“I
could make a case for either side,“ Powell said. ”It’s a close call. We always
hope that the data will give us a clear read. It’s a very challenging
situation. I think we’re in a good place to, as I mentioned, to wait and see
how the economy evolves.”
The Fed
also released an update
to the Summary of Economic Projections, a quarterly forecast of where officials
expect policy and the economy to head.
The
December survey revealed policymakers anticipating one rate cut in 2026,
signaling a slower pace of policy easing in the year ahead. They also penciled
in a single rate cut in 2027.
Officials
also shaved their inflation expectations. The personal consumption expenditure
price index—the central bank’s preferred inflation measure—is seen slowing to
2.4 percent next year, down from the September forecast of 2.6 percent. The
core personal consumption expenditure price index, which strips out food and
energy prices because of their volatility, is anticipated to ease to 2.5
percent, down from the previous projection of 2.6 percent.
Growth
prospects were also revised higher. The gross domestic product growth rate is
predicted to be 2.3 percent in 2026, up from the September estimate of 1.8
percent.
The
unemployment rate is predicted to be 4.4 percent next year, unchanged from the
previous Summary of Economic Projections.
As for
next month’s meeting, the Fed will adopt a wait-and-see approach for future
decisions based on incoming data and the evolving outlook.
“We’ll
carefully evaluate that incoming data, and also, I would note that having
reduced our policy rate by 75 basis points since September and 175 basis points
since last September, the fed funds rate is now within a broad range of
estimates of its neutral value, and we are well-positioned to wait and see how
the economy evolves,” Powell said.
In
addition to the interest rate decision, the central bank confirmed that it will
restart its purchases of Treasury securities. The Fed will begin purchasing $40
billion in Treasury bills—short-term securities with maturities of four weeks
to one year—on Dec. 12.
Divergence
In
recent weeks, there has been increasing divergence among Fed officials. Minutes
from the October meeting and public comments have highlighted the growing
divide.
One
camp has supported lowering interest rates amid slowing employment conditions
and concerns that keeping policy restrictive could weigh on economic growth
prospects, given the lag effect of monetary policy.
The
other side suggests leaving rates steady to prevent a further reacceleration of
inflation, arguing that the labor market remains intact and the broader economy
continues to expand.
It has
become a balancing act for the U.S. central bank, and policymakers have
acknowledged that the dual mandate—maximum employment and price stability—is
under threat.
Another
challenge for the institution has been the lack of government economic data.
The key numbers, particularly the November jobs report and November inflation
figures, will be released shortly after the Fed meeting.
The
nonfarm payrolls report for October and November will be published on Dec. 16.
The November consumer price index will come out on Dec. 18.
In
positive news for policymakers, the Federal Reserve Bank of
Cleveland’s
Inflation Nowcasting model estimates
that the annual inflation rate may have stalled at 3 percent.
Committee
members will convene for the next two-day meeting on Jan. 27 and Jan. 28.
Connecting
the Dots:
Jerome
H. Powell (Jay) is
the Chairman for the Federal Reserve System and was a partner at
the Carlyle Group.
Edward
J. Mathias is
a managing director at the Carlyle Group and a director at
the Economic Club of Washington.
David M.
Rubenstein is a co-founder & co-CEO for the Carlyle Group,
the president of the Economic Club of Washington, co-chairman
for the Brookings
Institution (think tank)
and Joe Biden
spent Thanksgiving with him.
Foundation to Promote Open Society was a funder for the Brookings
Institution (think tank).
George Soros was the chairman for the Foundation to Promote
Open Society.
Vernon E. Jordan
Jr. is an honorary trustee at the Brookings
Institution (think tank),
Valerie B. Jarrett’s great uncle and was the president of the Economic
Club of Washington.
Cyrus
F. Freidheim Jr. is
an honorary trustee at the Brookings
Institution (think tank) and a member of the Commercial
Club of Chicago.
Valerie
B. Jarrett
is a member of the Commercial Club of Chicago, Vernon E. Jordan
Jr’s great niece, was the senior adviser for the Barack Obama
administration and a board member for the Federal Reserve Bank of
Chicago.
Thomas J. Wilson is
a member of the Commercial Club of Chicago and was a director at
the Federal Reserve Bank of Chicago.
Gregory Q. Brown is a member of the Commercial Club of Chicago and a director at the Federal Reserve Bank of Chicago.
Charles L. Evans is a member of the Commercial Club of Chicago
and the president & CEO for the Federal Reserve Bank of Chicago.
William C. Foote is
a member of the Commercial Club of Chicago and a director at
the Federal Reserve Bank of Chicago.
Terry Mazany is
a member of the Commercial Club of Chicago and a director at
the Federal Reserve Bank of Chicago.
Frederick H.
Waddell is a member of the Commercial Club of Chicago and a
director at the Federal Reserve Bank of Chicago.
Anthony K.
Anderson is a member of the Commercial Club of Chicago and
was a director at the Federal Reserve Bank of Chicago.
John A. Canning
Jr. is a member of the Commercial Club of Chicago and was
the chairman for the Federal Reserve Bank of Chicago.
Silas Keehn is
a member of the Commercial Club of Chicago and was the president
for the Federal Reserve Bank of Chicago.
Michael H. Moskow is
a member of the Commercial Club of Chicago and was the president
& CEO for the Federal Reserve Bank of Chicago.
Federal
Reserve Bank of Chicago is a bank in the Federal Reserve
System.
Austan D.
Goolsbee is the president of the Federal Reserve Bank of
Chicago, was a director, Economic Recovery Board, council of economic
adviser’s chairman for the Barack Obama administration and a distinguished
senior fellow at the Center for American Progress.
Foundation to Promote Open Society was a funder for the Center for
American Progress.
George Soros was the chairman for the Foundation to
Promote Open Society and a supporter for the Center for
American Progress.
Daniel K. Tarullo was
a senior fellow at the Center for American Progress, is a member of the Federal
Open Market Committee and a member of the Federal Reserve Board.
Akin,
Gump, Strauss, Hauer & Feld, LLP was a funder for the Center for
American Progress.
Vernon E. Jordan
Jr. is a senior counsel for Akin, Gump, Strauss, Hauer
& Feld, LLP, Valerie B. Jarrett’s great uncle, an honorary
trustee at the Brookings
Institution (think tank) and
was the president of the Economic Club of Washington.
Foundation to Promote Open Society was a funder for the Brookings
Institution (think tank).
George Soros was the chairman for the Foundation to Promote
Open Society and is a member of the Bretton Woods Committee.
Stanley Fischer is a member of the Bretton Woods Committee, a member of the Federal Open Market Committee and the vice chairman for the Federal Reserve Board.
Randal K. Quarles is a member of the Bretton Woods Committee
and a vice chairman for supervision nominee for the Federal Reserve
Board.
Edwin M. Truman is
a member of the Bretton Woods Committee, was an economist for
the Federal Open Market Committee, a director of the international
finance division for the Federal Reserve Board and an assistant
secretary for the U.S. Department of the Treasury.
Donald L. Kohn is
a member of the Bretton Woods Committee, a senior fellow at
the Brookings
Institution (think tank),
was a member of the Federal Open Market Committee and a vice
chairman for the Federal Reserve Board.
Alan S. Blinder is a member of the Bretton Woods Committee, a friend of Ben S. Bernanke and was a vice chairman for the Federal Reserve Board.
Ben S. Bernanke was a chairman for the Federal Open Market
Committee, a chairman for the Federal Reserve Board, is a
friend of Alan S. Blinder and a distinguished fellow at the Brookings
Institution (think tank).
Lael Brainard is
a member of the Federal Open Market Committee, a member of
the Federal Reserve Board and was a VP & director for the Brookings
Institution (think tank).
Karen Dynan was
a senior adviser for the Federal Reserve Board, and an assistant
secretary for the U.S. Department of the Treasury, a VP for the Brookings
Institution (think tank)
and is married to Douglas W. Elmendorf.
Douglas W.
Elmendorf is married to Karen Dynan, was an assistant
director, Research and Statistics for the Federal Reserve Board and
a senior fellow at the Brookings Institution (think tank).
Alice M. Rivlin was
a vice chair for the Federal Reserve Board, is Allan Rivlin’s mother
and a senior fellow at the Brookings Institution (think tank).
Allan Rivlin is Alice
M. Rivlin’s son and Donna E. Shalala was his senior
adviser.
Donna E. Shalala was Allan
Rivlin’s senior adviser and a fellow at the Brookings
Institution (think tank).
Foundation to Promote Open Society was a funder for the Brookings
Institution (think tank).
George Soros was the chairman for the Foundation to
Promote Open Society.
Susan M. Collins is
a non-resident senior fellow at the Brookings Institution (think tank) and a director, Detroit
branch for the Federal Reserve Bank of Chicago.
Louis W. Cabot is
an honorary trustee at the Brookings Institution (think tank) and was a director at
the Federal Reserve Bank of Boston.
Richard C. Blum was
an honorary trustee at the Brookings Institution (think tank), married to Senator Dianne
Feinstein and an Economic Advisory Council member for the Federal
Reserve Bank of San Francisco.
Glenn H. Hutchins is
a trustee at the Brookings
Institution (think tank) and
a director at the Federal Reserve Bank of New York.
John C. Whitehead is
an honorary trustee at the Brookings Institution (think tank) and was the chairman for the Federal
Reserve Bank of New York.
Foundation to Promote Open Society was a funder for the Brookings
Institution (think tank)
and the Committee
for Economic Development.
George Soros was the chairman for the Foundation to Promote
Open Society.
Letitia James is the chair for the Committee on
Economic Development
and the Attorney General of New York.
Lee C. Bollinger is
a trustee at the Committee
for Economic Development and
was the chairman for the Federal Reserve Bank of New York.
William J.
McDonough is a trustee at the Committee for Economic Development and was the president &
CEO for the Federal Reserve Bank of New York.
Peter G. Peterson is a trustee at the Committee for Economic Development and was the chairman for the Federal Reserve Bank of New York.
Carl T. Camden is a trustee at the Committee for
Economic Development and
a director, Detroit branch for the Federal Reserve Bank of Chicago.
Jeffrey A. Joerres is
a trustee at the Committee
for Economic Development and
a director at the Federal Reserve Bank of Chicago.
James E. Rohr is a trustee at the Committee for Economic Development a member of the Federal Advisory Council to the Federal Reserve Board and was a director – Cleveland for the Federal Reserve Bank of Cleveland.
John E. Sexton is a trustee at the Committee for
Economic Development,
was the chairman for the Federal Reserve Bank of New York and
the chair Council of Chairs for the Federal Reserve System.
Roger W. Ferguson Jr. is a co-chairman for the Committee for Economic Development and was the vice chairman for the Federal Reserve Board.
Barbara B. Grogan is a trustee at the Committee for
Economic Development and
was the chair - Denver branch for the Federal Reserve Bank of Kansas
City.
Letitia James is the chair for the Committee on
Economic Development
and the Attorney General of New York.
Carol A. Melton was
a trustee at the Committee
for Economic Development and
a director at the Economic Club of Washington.
Robert G.
Liberatore was a trustee at the Committee for Economic Development and a director at the Economic
Club of Washington.
Edward J. Mathias is
a director at the Economic Club of Washington and a managing
director at the Carlyle Group.
Jerome H. Powell (Jay) was
a partner at the Carlyle Group and is the Chairman for the Federal
Reserve System.
David M.
Rubenstein is a co-founder & co-CEO for the Carlyle Group,
the president of the Economic Club of Washington, co-chairman
for the Brookings
Institution (think tank)
and Joe Biden
spent Thanksgiving with him.
Foundation to Promote Open Society was a funder for the Brookings
Institution (think tank).
George Soros was the chairman for the Foundation to
Promote Open Society.
Vernon E. Jordan
Jr. is an honorary trustee at the Brookings
Institution (think tank),
Valerie B. Jarrett’s great uncle and was the president of the Economic
Club of Washington.
Cyrus
F. Freidheim Jr. is an honorary trustee at the Brookings
Institution (think tank)
and a member of the Commercial Club of Chicago.
Valerie B. Jarrett
is a member of the Commercial Club of Chicago, Vernon E. Jordan
Jr’s great niece, was the senior adviser for the Barack Obama
administration and a board member for the Federal Reserve Bank of
Chicago.
Federal
Reserve Bank of Chicago is a bank in the Federal Reserve
System.
Austan D.
Goolsbee is the president of the Federal Reserve Bank of
Chicago, was a director, Economic Recovery Board, council of economic
adviser’s chairman for the Barack Obama administration and a distinguished
senior fellow at the Center for American Progress.
Foundation to Promote Open Society was a funder for the Center for
American Progress.
George Soros was the chairman for the Foundation to Promote
Open Society and a supporter for the Center for
American Progress.
Daniel K. Tarullo was
a senior fellow at the Center for American Progress, is a member of the Federal
Open Market Committee and a member of the Federal Reserve Board.
Akin,
Gump, Strauss, Hauer & Feld, LLP was a funder for the Center for
American Progress.
Apple Inc. was a funder for the Center for American Progress.
AT&T Inc. was
a funder for the Center
for American Progress.
Bank of
America Corp. was a funder for the Center for
American Progress.
BMW of
North America LLC was a funder for the Center for
American Progress.
Citigroup Inc. was
a funder for the Center
for American Progress.
Coca-Cola
Company was a funder for the Center for American Progress.
Facebook was a
funder for the Center
for American Progress.
General
Electric Company was a funder for the Center for
American Progress.
Goldman
Sachs Group Inc. (Bailout Company) was a funder for the Center for
American Progress.
Motion
Picture Association of America was a funder for the Center for
American Progress.
PepsiCo, Inc. was
a funder for the Center
for American Progress.
PG&E
Corporation was a funder for the Center for
American Progress.
Samsung
Electronics Co. was a funder for the Center for
American Progress.
Time Warner Inc. was
a funder for the Center
for American Progress.
T-Mobile USA,
Inc. was a funder for the Center for American Progress.
Toyota
Motor North America was a funder for the Center for
American Progress.
Visa Inc. was a
funder for the Center
for American Progress.
Wal-Mart
Stores Inc. was a funder for the Center for
American Progress.
Wells Fargo &
Co. was a funder for the Center for American Progress.
John D. Podesta is
the chair & counselor for the Center for American Progress and the chairman for the Center
for American Progress Action Fund.
Center for American Progress Action Fund is a fund, affiliated advocacy group for the Center for American Progress.
Carol M. Browner is a director, senior fellow at the Center for
American Progress
and was the energy czar for the Barack Obama administration.
Tom Daschle is
a director at the Center for American Progress and was the nominee for health and
human services secretary for the Barack Obama administration.
Ezekiel Emanuel is
a senior fellow at the Center for American Progress and was the health care policy
adviser for the Barack Obama administration.
Lawrence H.
Summers is a distinguished fellow at the Center for
American Progress
and was the National Economic Council chairman for the Barack Obama
administration.
Cassandra Q. Butts was
the SVP for the Center
for American Progress
and the deputy White House counsel for the Barack Obama administration.
Philip J. Crowley was
the director of homeland security at the Center for American Progress, and the assistant secretary of
state for the Barack Obama administration.
Derek Douglas was
an associate director of economic policy at the Center for
American Progress
and a special assistant for urban affairs for the Barack Obama
administration.
Bradley J. Kiley was
a VP for the Center
for American Progress
and the director of management and administration for the Barack Obama
administration.
Karen Kornbluh was
a visiting scholar at the Center for American Progress and a policy director for Barack
Obama.
Jeanne Lambrew was
a senior fellow at the Center for American Progress and is the deputy assistant to the
president for health policy for the Barack Obama administration.
Denis McDonough was
a senior fellow at the Center for American Progress and is the chief of staff; former
deputy national security adviser for the Barack Obama administration.
Esther M.
Olavarria was the director of immigration policy at the Center for
American Progress
and is the deputy assistant secretary at the U.S. Department of
Homeland Security for the Barack Obama administration.
Dan Restrepo was
the Americas Project director at the Center for American Progress and a special assistant to the
president for the Barack Obama administration.
Gene B. Sperling was
a senior fellow at the Center for American Progress and the assistant to the president
for economic policy for the Barack Obama administration.
Todd Stern was
a senior fellow at the Center for American Progress and the special envoy for climate
change at the U.S. Department of State for the Barack
Obama administration.
Melody C. Barnes was
the EVP for the Center
for American Progress
the domestic policy council, director for the Barack Obama
administration and is Barack Obama’s golf partner.
Jose H.
Villarreal is a director at the Center for American Progress and a senior adviser at the Akin,
Gump, Strauss, Hauer & Feld, LLP.
Akin,
Gump, Strauss, Hauer & Feld, LLP was a funder for the Center for
American Progress.
Daniel K. Tarullo was
a senior fellow at the Center for American Progress, is a member of the Federal
Open Market Committee and a member of the Federal Reserve Board.
Austan D.
Goolsbee was a distinguished senior fellow at the Center for
American Progress,
a director, Economic Recovery Board, council of economic adviser’s chairman for
the Barack Obama administration and is the president of
the Federal Reserve Bank of Chicago.
Federal
Reserve Bank of Chicago is a bank in the Federal Reserve
System.
Valerie B. Jarrett
was a board member for the Federal Reserve Bank of Chicago, the
senior adviser for the Barack Obama administration, is a member of
the Commercial Club of Chicago and Vernon E. Jordan Jr’s
great niece.
Vernon E. Jordan
Jr. is Valerie B. Jarrett’s great uncle, a senior
counsel for Akin, Gump, Strauss, Hauer & Feld, LLP, an honorary
trustee at the Brookings
Institution (think tank)
and was the president of the Economic Club of Washington.
Akin,
Gump, Strauss, Hauer & Feld, LLP was a funder for the Center for
American Progress.
George Soros was a supporter for the Center for
American Progress
and the chairman for the Foundation to Promote Open Society.
Foundation to Promote Open Society was a funder for the Center for
American Progress
and the Brookings
Institution (think tank).
David M.
Rubenstein is co-chairman for the Brookings
Institution (think tank),
the president of the Economic Club of Washington, a
co-founder & co-CEO for the Carlyle Group and Joe Biden spent Thanksgiving with him.
Edward J. Mathias is
a director at the Economic Club of Washington and a managing
director at the Carlyle
Group.
Jerome H. Powell (Jay) was
a partner at the Carlyle
Group and is the
Chairman for the Federal Reserve System.
Resources:
Past Research
Vice
Chair Stanley Fischer Is Stepping Down from the Fed (Past
Research on the Federal Open Market Committee)
Friday,
September 8, 2017
https://thesteadydrip.blogspot.com/2017/09/vice-chair-stanley-fischer-is-stepping.html
‘Not
QE’ as Fed Trapped Between a ‘Rock and a Hard Place’ (Connecting the Dots:
FDIC, Federal Reserve, St. Louis Federal Reserve, Department of the Treasury
& Soros Funding, All Networking) (Past Research
on the Federal Reserve Bank of St. Louis, the Federal Reserve Bank of Kansas
City & the
Federal Reserve Bank of Cleveland)
Sunday,
March 19, 2023
https://thesteadydrip.blogspot.com/2023/03/not-qe-as-fed-trapped-between-rock-and.html
Fed/Duke
Survey: CFO Optimism Drops on Tariffs (Connecting the Dots: Duke University,
Conference Board, Federal Reserve, Obamacare, Committee for Economic
Development, The Commercial Club of Chicago & Soros Funding, All
Networking) (Past Research on the Federal Reserve
& the Committee for Economic Development)
Monday,
March 31, 2025
https://thesteadydrip.blogspot.com/2025/03/fedduke-survey-cfo-optimism-drops-on.html
Fed's
Goolsbee Sees Lower Interest Rates in a Year (Connecting the Dots: Austan D.
Goolsbee, Center for American Progress, The Federal Reserve Bank of Chicago,
The Federal Reserve System, The Commercial Club of Chicago, Jerome H. Powell
(Jay), The Carlyle Group, The Economic Club of Washington & Soros Funding,
All Networking) (Past Research on the Federal
Reserve System, The Commercial Club of Chicago, Austan D. Goolsbee, Jerome H.
Powell (Jay) & The Carlyle Group)
Saturday,
March 29, 2025
https://thesteadydrip.blogspot.com/2025/03/feds-goolsbee-sees-lower-interest-rates.html
100
Years of Government Theft (Past Research on the Federal
Reserve Bank of Boston)
Monday,
December 23, 2013
https://thesteadydrip.blogspot.com/2013/12/100-years-of-government-theft.html
Biden
Invokes Defense Production Act to Increase Infant Formula Supply (Do you think
maybe this infant formula shortage was planned? Let’s connect those dots!) (Past Research on the Commercial Club of Chicago & Cyrus
F. Freidheim Jr.)
Thursday,
May 19, 2022
https://thesteadydrip.blogspot.com/2022/05/biden-invokes-defense-production-act-to.html
New
York AG Letitia James Indicted on Federal Charges (Connecting the Dots: Letitia
James, Fannie Mae, Judge Arthur Engoron, Judge Sparkle Leah Sooknanan, Judge
Juan Merchan, Lisa Cook, The Committee for Economic
Development & Soros Funding, All Networking) (Past
Research on the Committee for Economic Development & Letitia James)
Thursday,
October 9, 2025
https://thesteadydrip.blogspot.com/2025/10/new-york-ag-letitia-james-indicted-on.html
Trump:
Biden Judge Can't Save Comey (Connecting the Dots: Judge Michael Nachmanoff,
FBI, James Comey, Joe Biden, Lisa Murkowski, Susan Collins, Letitia James, Mark
Warner & Soros Funding, All Networking) (Past
Research on Letitia James, the Committee for Economic Development & the Economic
Club of Washington)
Friday,
September 26, 2025
https://thesteadydrip.blogspot.com/2025/09/trump-biden-judge-cant-save-comey.html
GE,
Walmart, AT&T, Google Among Center for American Progress Donors (Past Research on the Center for American Progress)
Saturday,
December 14, 2013
https://thesteadydrip.blogspot.com/2013/12/ge-walmart-at-google-among-center-for.html
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