Fed’s Powell Signals Caution on Future Rate Cuts Amid Economic Uncertainty

Washington, D.C. — Federal Reserve Chair Jerome Powell offered a cautious outlook on potential interest rate cuts during a press conference on October 30, 2025. This marks the Fed’s second consecutive meeting where rates were lowered; however, Powell suggested that more cuts might not be imminent.

Powell explicitly addressed investor expectations of a third rate cut by December, stating, “Not so fast.” His remarks highlighted the divisions within the Federal Open Market Committee (FOMC), as members grapple with a buoyant consumer spending landscape contrasted by sharp hiring slowdowns.

“In fact, far from it,” Powell added, underlining ongoing debates over economic conditions. His comments come as various global economies are also adjusting to recent monetary policy shifts. For instance, the Bank of Canada‘s recent quarter-point reduction aims to stabilize its economy amid U.S. tariff pressures.

On the international front, President Donald Trump and Chinese President Xi Jinping met for the first time in six years, achieving a temporary truce in their ongoing trade war. This agreement includes reductions in U.S. tariffs on Chinese goods as China pledged to combat the trade of fentanyl precursors.

Meanwhile, the Bank of Japan opted to keep its overnight call rate steady at 0.5%, taking a cautious approach as it awaits clearer economic signals amidst changing political leadership. The European Central Bank is also expected to maintain its interest rates during their upcoming meeting.

Financial analysts now await crucial economic data and indicators to guide future Fed decisions, especially with the uncertainty imposed by the ongoing U.S. government shutdown.