At 10:00 AM on December 10, 2025, Jerome Powell, Chairman of the U.S. Federal Reserve, began his press conference. This came on the heels of a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, D.C. During the briefing, he provided insights into the central bank’s monetary policy, particularly regarding interest rates and the broader economic landscape.
Powell described the decision-making process between Federal Reserve officials as civil and collegial, elevating the value of a collaborative spirit over a tough guy image. He emphasized that the Fed is desperate to achieve equilibrium between its twin objectives of stable prices and low unemployment. He did admit that given the current economic climate there is “extremely persistent tension” between these goals, which he called “unusual.”
In response to inquiries about the implications of former President Donald Trump’s search for a new Fed chair on his own role, Powell firmly dismissed any concerns. He stated, “no,” emphasizing that such political matters do not influence his job or alter his perspective on monetary policy.
The press conference was likely the first opportunity to look back on the three interest rate cuts taken by the Fed in the past few months. Powell specifically said that central bankers need more time to evaluate just what kind of impact these cuts will have on the U.S. economy. He stressed the importance of being patient and careful in monitoring economic signs before taking additional steps.
“When you do that, this is what emerges,” Powell continued. He concluded that only through persistent, close observation can we hope to study the positive impacts of any new monetary policy.
The central bank’s most recent series of decisions have caused controversial reactions from economists and market analysts. Others argue that rate cuts are critical to igniting economic growth in a softening economy. On one side, you have those who fret that if we don’t hold interest rates low for long enough, inflationary pressures will come back with a vengeance.
Powell welcomed these different perspectives and doubled down the Fed’s promise to being open to change we’ve them in their approach. “We come together and we reach a place where we can make a decision,” he stated, reflecting the cooperative spirit among FOMC members.
Even with the difficulty of threading the needle on economic hardship, Powell is hopeful on the Fed’s prospects of accomplishing their goals. He acknowledged that delivering on these two mandates has proved difficult, stating the obvious truth that “you can’t do two things at the same time.” This language highlights the careful compromise the Fed is trying to achieve as it walks a tightrope in today’s rapidly shifting economy.
The FOMC’s deliberations are taking place as inflation has begun to surprise on the high side, leaving Federal Reserve policymakers in a precarious situation. Powell’s comments indicate that the Fed is firmly committed to a data-driven approach, but one that responds to changing economic realities.
As the U.S. economy faces potential headwinds, including geopolitical tensions and fluctuating consumer confidence, Powell’s leadership will be pivotal in guiding monetary policy. Ultimately, the Fed needs to double down on transparency, candor, and communication. This kind of approach will be key to establishing public trust and setting realistic expectations in the coming months.