Fed cuts rates by 0.25%.
By Maxime Laurent · 2025-12-11 08:28
Fed cuts rates by 0.25%.
A quick take: The Fed moves from 4% to 3.75%, easing the macro mood.
I listened to Jerome Powell’s FOMC remarks with my evening espresso, the sky turning pink over the Mediterranean — and franchement, the man played it cautious, comme d’hab.
The message was clear: nothing dramatic shifts for now, but the Fed sees a world that’s still a bit too warm on the inflation front.
Key vibes from his speech:
Powell says their outlook hasn’t changed much — inflation remains elevated, and the labor market is slowly cooling. The GDP growth forecast for 2026 got a bump upward, driven by strong consumer spending and ongoing heavy investment into AI (that sector’s eating the world, whether we like it or not).
He also warned that inflation risks lean higher, partly because tariffs might cause a one-time price jump. Strip tariffs out, he says, and the economy is basically running at 2% inflation. Not bad… but tariffs do exist, so here we are.
Rates, according to Powell, sit in the neutral zone, and the Fed will go meeting by meeting.
They’re ready to wait, observe, and take their time — especially after the 75 bps cuts since September.
Meanwhile, U.S. Treasury purchases may stay heavy to keep money markets calm.
What I found interesting is that Powell doesn’t see the economy as overheated at all, and even thinks job creation numbers may be overstated. AI plays a role in labor softness, but not the main one.
From my quiet balcony, it all feels like classic Powell: cautious, measured, almost intentionally boring — but in markets, boring is often where the tension builds ⚡️
#FOMC #Powell #FederalReserve #Inflation #Macro #Markets
A quick take: The Fed moves from 4% to 3.75%, easing the macro mood.
I listened to Jerome Powell’s FOMC remarks with my evening espresso, the sky turning pink over the Mediterranean — and franchement, the man played it cautious, comme d’hab.
The message was clear: nothing dramatic shifts for now, but the Fed sees a world that’s still a bit too warm on the inflation front.
Key vibes from his speech:
Powell says their outlook hasn’t changed much — inflation remains elevated, and the labor market is slowly cooling. The GDP growth forecast for 2026 got a bump upward, driven by strong consumer spending and ongoing heavy investment into AI (that sector’s eating the world, whether we like it or not).
He also warned that inflation risks lean higher, partly because tariffs might cause a one-time price jump. Strip tariffs out, he says, and the economy is basically running at 2% inflation. Not bad… but tariffs do exist, so here we are.
Rates, according to Powell, sit in the neutral zone, and the Fed will go meeting by meeting.
They’re ready to wait, observe, and take their time — especially after the 75 bps cuts since September.
Meanwhile, U.S. Treasury purchases may stay heavy to keep money markets calm.
What I found interesting is that Powell doesn’t see the economy as overheated at all, and even thinks job creation numbers may be overstated. AI plays a role in labor softness, but not the main one.
From my quiet balcony, it all feels like classic Powell: cautious, measured, almost intentionally boring — but in markets, boring is often where the tension builds ⚡️
#FOMC #Powell #FederalReserve #Inflation #Macro #Markets
Disclaimer: This content is for informational purposes only and not financial advice.