US Fed cuts interest rates in contentious October decision

We currently expect the Fed to cut one more time in December due to labour market weakness, but the optics of a cut while inflation is still moving up are not pretty, writes KPMG US Chief Economist Diane Swonk.

The Federal Open Market Committee (FOMC), the policy setting arm of the Federal Reserve, cut short-term interest rates by another quarter point to a target range of 3.75 percent to 4.0 percent and announced an end quantitative tightening (QT), starting 1 December. Most notable about the decision is that it was contentious. Newly appointed Governor Stephan Miran dissented in favour of a more aggressive one-half percent cut. Kansas City President Jeff Schmid dissented against any cuts. Dissen...

Sign in below or register now to read the full article

Authors: Diane Swonk

Published Date: 31 October 2025