On October 24, 2025, Jerome Powell, the chairman of the U.S. Federal Reserve, testified at an open hearing in Washington, D.C. He drew attention to some crucial issues regarding the timing and motives behind any forthcoming interest rate cuts. He said all that right after giving a speech on October 14th. During that speech, he prudently opened the door to additional rate cuts. As the Fed grapples with uncertainty stemming from a lack of government data, market watchers are closely monitoring Powell’s upcoming post-meeting news conference scheduled for 2:30 p.m. ET on Wednesday.
In his recent Jackson Hole speech, Powell noted that the job market is currently a very different place. He noted that inflation has hardly moved since the Fed’s September meeting. His comments underscore the difficulties confronting all monetary policymakers as they seek to chart a course for monetary policy in a new and troubling macroeconomic situation.
Powell’s Cautious Approach
In his October 14 speech, Powell made clear just how crucial it is that the Fed proceed cautiously toward future rate cuts. He agreed that there is space to make changes, but stressed the need for caution above all else.
“You don’t want to make a mistake, so the way to avoid that is to go cautiously or carefully and do [a quarter-point cut], wait and see what happens, and then you can get a better idea of what to do.” – Fed Governor Christopher Waller
That sentiment indicates the Fed’s awareness that future decisions should be made with care. They needed to understand deeply how the economy was shifting. The unwillingness to act quickly on rate cuts comes from fears about data accuracy and its effect on economic predictions.
Concerns Over Data Availability
The absence of detailed federal data places enormous burdens on state and local policymakers. As both Powell and other Fed officials have highlighted, without the right data, it’s harder and harder to make informed decisions.
Chicago Fed President Austan Goolsbee articulated this concern, stating, “And if you’re not going to get the data, it’s just that much harder.” The as yet ambiguous data could lead the Fed to adopt a more dovish direction. Accordingly, they may be inclined to shift their monetary policy framework going forward.
Kathy Bostjancic, chief economist at Nationwide, echoed this sentiment, noting that “the Fed could conclude there’s so much uncertainty because of the lack of government data that it takes it slower with cutting rates than it normally would.” This cautious stance reflects a growing awareness among Fed officials of the complexities involved in navigating economic conditions without reliable data.
Anticipation for Future Policy Moves
As investors prepare for Powell’s upcoming news conference, there is considerable interest in how he will articulate the Fed’s stance on future policy moves amid ongoing uncertainty. Market watchers are expecting that Powell will give clues on how the Fed is going to address the huge data gap. They’re itching to hear about implications for monetary policy.
Recent Congressional testimony by key Fed watchers show the difficulty for which Fed officials are striving. They need to fire up an economic recovery through future rate reductions while steering clear of overreactions based on tentative data. Goolsbee summarized this dilemma, stating, “going into a period where you’re trying to figure out: Is this a transition?”
With the meeting coming to a close, investors are left yearning for the words of Powell. Most importantly, there’s no mistaking that the Federal Reserve is serious about a deliberative, methodical, and precautionary approach to its decision-making. The caution in the words is a nod to the uncertainty reigning over new economic data points.