{"id":438619,"date":"2025-12-10T21:29:13","date_gmt":"2025-12-10T21:29:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/438619\/"},"modified":"2025-12-10T21:29:13","modified_gmt":"2025-12-10T21:29:13","slug":"federal-reserve-cuts-interest-rates-by-0-25-powell-says-theres-no-risk-free-path","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/438619\/","title":{"rendered":"Federal Reserve cuts interest rates by 0.25%, Powell says there&#8217;s &#8216;no risk-free path&#8217;"},"content":{"rendered":"\n<p class=\"yf-1090901\">Markets reacted positively after the Fed cut interest rates by a quarter point on Wednesday.<\/p>\n<p class=\"yf-1090901\">And part of the optimism seems to be around the Fed&#8217;s outlook for the economy, which it sees growing at a 2.3% rate in 2026 after this year&#8217;s 1.7% GDP growth.<\/p>\n<p class=\"yf-1090901\">&#8220;The take on productivity and growth is very risk-friendly,&#8221; Evercore ISI&#8217;s Krishna Guha wrote in a note on Wednesday. &#8220;The Fed chair suggests productivity may be running about 2%, allowing the economy to grow faster without generating excess inflation.&#8221;<\/p>\n<p class=\"yf-1090901\">In essence, lower rates, falling inflation, and faster economic growth is a recipe for higher corporate profits, a stabilization in the labor market, and as evidenced on Wednesday, higher stock prices.<\/p>\n<p class=\"yf-1090901\">Fed officials expected to make one more rate cut next year, the same number projected in September. As of Wednesday afternoon, <a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:markets were pricing;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">markets were pricing<\/a> in additional rate cuts in April and June.<\/p>\n<p class=\"yf-1090901\">Guha said Powell sounded &#8220;very upbeat on productivity and growth, including AI effects,&#8221; during his press conference on Wednesday.<\/p>\n<p class=\"yf-1090901\">Adding Powell came across with a &#8220;calm rather than edgy in tone, suggesting he is comfortable and in charge rather than on the ropes as in October.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Markets reacted positively after the Fed cut interest rates by a quarter point on Wednesday. And part of&hellip;\n","protected":false},"author":3,"featured_media":438620,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[10852,64,37511,202730,267,202731,67,132,68],"class_list":{"0":"post-438619","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-austan-goolsbee","9":"tag-business","10":"tag-fed-officials","11":"tag-federal-reserve-cut-interest-rates","12":"tag-interest-rates","13":"tag-policy-decision","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115697402784246228","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/438619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=438619"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/438619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/438620"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=438619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=438619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=438619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}