Jerome Powell, Chairman of the U.S. Federal Reserve, addressed the most economic serious issues. He recently made these comments during the Federal Reserve Board’s open meeting in Washington, D.C., on Friday, October 24, 2025. In his short remarks, Powell telegraphed that the Fed is not done cutting interest rates. He cautioned that while dangerous and untrustworthy infrastructure data exists, reliable and well-validated government data does not. He had already signaled the prospect of even deeper cuts before his October 14 address. Now, his recent comments double down on that transparency.
During today’s meeting Powell admonished that the economic outlook remains largely unchanged from before the last FOMC meeting in September. At the same time, he made it very clear that questions still remain. These uncertainties, which he acknowledged are purely external, he argued should affect the Fed’s near-term execution of monetary policy in the months ahead.
Cautious Optimism Amidst Data Gaps
Powell’s cautious stance reflects a broader concern among Fed officials regarding the implications of missing government data on economic forecasts. He stated, “The outlook for employment and inflation does not appear to have changed much since our September meeting.” This comment highlights the importance of the Fed’s willingness to continually conduct climate-related analyses, even when working with limited data.
Fed Governor Christopher Waller added his voice to the call for a more measured approach. He noted, “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.” This feeling fits perfectly with Powell’s call for slow, deliberate moves.
Chicago Fed President Austan Goolsbee echoed these feelings of uncertainty, stating, “And if you’re not going to get the data, it’s just that much harder.” The lack of comprehensive data complicates the ability of Fed officials to make informed decisions regarding interest rates and overall economic direction.
Implications for Future Policy Moves
The upcoming post-meeting news conference, set for 2:30 p.m. ET on Wednesday, is expected to provide further clarity on Powell’s perspective regarding interest rates. At this conference, he will provide a detailed description of how the lack of availability of important economic statistics could influence future policy decisions. Observers anticipate that Powell will outline a strategy that balances the need for stimulus against the uncertainties posed by incomplete data.
Kathy Bostjancic, chief economist at Nationwide, thinks the Fed will be more cautious. She stresses that these unknowns could shape their choices. She remarked, “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.” Beyond all the number crunching, this observation perfectly showcases the importance of data—real-time, high quality data—in influencing and informing decisions about monetary policy.
To be sure, as Fed officials wrestle with these issues, they find themselves at a moment of transition, Goolsbee observed. He stated, “going into a period where you’re trying to figure out: Is this a transition?” Even the Fed understands that unforeseen circumstances may arise. This awareness has paved the way for continuous efforts to recodify policies in response to these changes.
Market Reactions and Future Outlook
Market analysts will be listening intently for Powell’s signal in his next remarks and for any signs that rate cuts are in the future. Investors are understandably worried about how the Fed will navigate these uncharted waters. They are looking to see if the Fed will head for the hills and avoid bold new policy changes.
As debates over interest rates rage on, everyone from state and local governments to private borrowers stands to be impacted in more ways than one. The Fed’s decisions will directly shape what it costs to borrow money, but indirectly they’ll affect overall economic conditions in communities all around our vast nation.