Federal Reserve Chair Jerome Powell has revealed that the Federal Open Market Committee (FOMC) remains divided on the potential for additional interest rate cuts in 2025. Speaking at a recent press conference, Powell emphasized that monetary policy decisions are being evaluated on a meeting-by-meeting basis, with no pre-set course of action. The committee is carefully analyzing incoming economic data, inflation trends, and global financial conditions to determine the appropriate path forward. Powell noted that while some members advocate for a more accommodative stance to support economic growth, others express caution, prioritizing the fight against persistent inflationary pressures. This lack of long-term consensus underscores the highly data-dependent nature of the current policy approach. The Fed’s commitment to achieving its dual mandate of maximum employment and price stability remains unwavering, but the tools to achieve it are subject to vigorous debate among policymakers. Market participants will be closely monitoring upcoming economic reports and FOMC communications for further clues on the direction of U.S. monetary policy.
