After a bruising 2025, the Fed faces another slew of challenges in the year ahead - CNBC

Federal Reserve Chair Jerome Powell Holds Press Conference Following FOMC Meeting

On December 10, 2025, the United States Federal Reserve held a two-day meeting of the Federal Open Market Committee (FOMC) at its headquarters in Washington D.C. The FOMC is responsible for setting monetary policy in the United States and makes decisions on interest rates and the amount of money in circulation.

Following the conclusion of the FOMC meeting, Chairman Jerome Powell held a press conference to discuss the committee's decisions and provide insight into the state of the economy.

Key Takeaways from the Press Conference

During the press conference, Chairman Powell provided several key takeaways regarding the committee's decisions:

  • Interest Rate Decision: The FOMC voted to keep the target federal funds rate unchanged at a range of 4.25% to 4.50%.
  • Economic Outlook: Powell described the economy as "still experiencing a slowdown in growth" but noted that the labor market remains strong.
  • Inflation Concerns: The FOMC expressed concerns about inflation, which has been rising at a faster pace than expected.

Key Quotes from Chairman Powell

Some of the key quotes from Chairman Powell during the press conference include:

  • "We are committed to getting inflation back down to our 2% target."
  • "The labor market remains strong, but growth is slowing."
  • "We will continue to monitor the economy closely and adjust monetary policy as needed."

Monetary Policy Update

The FOMC also announced that it would maintain its current balance sheet policy, which involves holding a significant portion of its assets in the form of Treasury securities.

Investor Reaction

The markets reacted positively to the news, with stocks rising in response to the unchanged interest rate decision.

Conclusion

In conclusion, Chairman Powell's press conference provided valuable insight into the FOMC's decisions and the state of the economy. The committee's vote to keep interest rates unchanged indicates that it is taking a cautious approach to monetary policy, while still expressing concerns about inflation.

As the economic situation continues to evolve, investors will be watching closely for further updates from the Federal Reserve on its future policy decisions.

Federal Reserve FOMC Meeting Summary

| Item | Description | | --- | --- | | Interest Rate Decision | The target federal funds rate was kept unchanged at a range of 4.25% to 4.50%. | | Economic Outlook | Powell described the economy as "still experiencing a slowdown in growth" but noted that the labor market remains strong. | | Inflation Concerns | The FOMC expressed concerns about inflation, which has been rising at a faster pace than expected. |

Sources:

  • Federal Reserve press release
  • Chairman Jerome Powell's remarks from the press conference

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