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Friday, December 19, 2025

Cut or PauseFederal Reserve Walking Divergent Path on Interest Rates

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Federal Reserve Chair Jerome Powell speaks at a news conference following the Federal Open Market Committee (FOMC) meeting in Washington on Oct. 29, 2025. Madalina Kilroy/The Epoch TimesThe Federal Reserve has lowered interest rates three times this year, but the U.S. central bank does not appear to have unanimity on the path of a key policy decision heading into 2026.For months, monetary policymakers have expressed diverging views on what the Fed should do about interest rates. While officials agree that the dual mandate—maximum employment and price stability—has been under threat in tandem, some have emphasized one side over the other.

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