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Fed Cuts Rates Again, but Jerome Powell Warns “Don’t Assume Another Cut in December”

The Federal Reserve, led by Chair Jerome Powell, approved a second consecutive interest rate cut to 3.75–4%, but uncertainty looms over future easing as policymakers clash on inflation, jobs, and data scarcity.

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Federal Reserve Chair Jerome Powell warns investors not to assume another rate cut in December after announcing a second consecutive reduction in 2025.
Federal Reserve Chair Jerome Powell warns investors not to assume another rate cut in December after announcing a second consecutive reduction in 2025.

In a move closely watched by global markets, the Federal Reserve on Wednesday announced its second consecutive interest rate cut, lowering the benchmark federal funds rate to a range between 3.75% and 4%. The decision, backed by an overwhelming 10-2 vote, signals a cautious shift toward monetary easing—yet Fed Chair Jerome Powell quickly dampened expectations of further cuts in December, unsettling investors.


A Divided Committee

The Federal Open Market Committee (FOMC)’s decision reflects deep internal divisions. While most members supported the quarter-point reduction, Governor Stephen Miran, a Donald Trump appointee, pushed for a half-point cut, citing the need for faster policy support. Meanwhile, Jeffrey Schmid, President of the Kansas City Fed, dissented in the opposite direction, arguing against any further easing.

Federal Reserve Chair Jerome Powell warns investors not to assume another rate cut in December after announcing a second consecutive reduction in 2025.


The decision also included a major policy shift: the end of quantitative tightening (QT)—the Fed’s process of shrinking its balance sheet—effective December 1. This signals a pause in the Fed’s multi-year effort to unwind its massive $6.6 trillion asset holdings accumulated during the pandemic.

“Downside risks to employment have risen in recent months,” the Fed noted, indicating growing concern about the labor market despite inflation remaining above the 2% target.


Powell: “A Further Cut Is Not a Foregone Conclusion”

Speaking at his post-meeting press conference, Jerome Powell emphasized the central bank’s cautious stance:

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” he said. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”

Powell added that there was “a growing chorus” among the 19 policymakers to “wait a cycle” before cutting again, suggesting that the Fed may pause to assess the impact of its recent moves.

Following his comments, market expectations for another December rate cut dropped sharply—from 90% to 67%, according to CME Group’s FedWatch Tool.


Markets React to Mixed Signals

Initially, U.S. stocks climbed on news of the rate cut but reversed course as Powell’s cautious tone sank in. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all dipped before clawing back modest gains by session close.

Analysts described the Fed’s tone as “hawkish dovishness”—a balancing act between acknowledging economic risks and curbing inflationary fears.

“Powell is walking a tightrope,” said economist Krishna Guha of Evercore ISI, who believes the Fed could even restart bond purchases in 2026 if liquidity tightens again. “He’s signaling patience, not panic.”


Fed Flying Blind Without Fresh Data

Complicating the Fed’s task, the U.S. government’s recent data blackout means key metrics—such as nonfarm payrolls, retail sales, and GDP revisions—remain unavailable. The only major report released was the Consumer Price Index (CPI), showing inflation at 3%, driven by higher energy costs and items linked to Trump-era tariffs.

In its statement, the Fed acknowledged the uncertainty:

“Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed, and the unemployment rate has edged up but remains low… Inflation has moved up since earlier in the year and remains somewhat elevated.”

The revised language—shifting from “moderated” to “expanding”—signals cautious optimism but also underscores the Fed’s struggle to balance full employment with price stability.


Federal Reserve Chair Jerome Powell warns investors not to assume another rate cut in December after announcing a second consecutive reduction in 2025.


Ending Quantitative Tightening

The decision to halt quantitative tightening marks another major policy shift. QT had reduced the Fed’s balance sheet by $2.3 trillion, as the central bank let Treasury and mortgage securities mature without reinvestment.

An implementation note confirmed that the Fed will begin reinvesting maturing mortgage proceeds into short-term Treasury bills, effectively stabilizing its portfolio.

Powell reiterated that while shrinking the balance sheet was necessary, the Fed “does not expect to return to pre-pandemic levels.”


Political and Policy Pressure

President Donald Trump, who has frequently criticized the Fed for being too slow to lower rates, renewed calls for deeper cuts to support growth ahead of the 2026 election cycle. However, Powell has repeatedly stressed the Fed’s independence.

The central bank’s current stance appears to favor data dependency—waiting for clearer signals on jobs and inflation before acting again.


Looking Ahead: Uncertainty Dominates

The Fed’s final meeting of the year, scheduled for December, will be pivotal. While some traders expect another small cut, others warn that continued inflation pressures and data scarcity could prompt a pause.

“Powell is right to be cautious,” said Michael Arone, chief investment strategist at State Street Global Advisors. “Cutting too fast could reignite inflation, while moving too slowly risks a labor-market slide.”

For now, markets are bracing for volatility — torn between optimism over easing and fear that the Fed may “wait and watch” longer than expected.

Politics

James Carville Warns “I’m Out of Here” If Hasan Piker Becomes Democratic Party’s New Face…

The veteran Democratic strategist clashes with rising progressive voices as debates over the future direction of the party intensify after recent primary victories.

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James Carville vs Hasan Piker: Democratic Party Faces Major Progressive Divide
James Carville criticizes Hasan Piker’s growing influence as Democrats debate the future direction of the party between establishment leaders and progressive activists.

James Carville Draws a Line Over Hasan Piker as Democratic Party Faces Internal Identity Battle

A fresh ideological battle is shaking the Democratic Party as veteran strategist James Carville takes aim at rising progressive voices, warning that he does not see himself sharing a political home with influential left-wing commentator Hasan Piker if Piker becomes a major force within the party.

During an appearance on Fox News’s “The Sunday Briefing,” Carville delivered a sharp message about the growing divide between traditional Democratic leadership and younger progressive activists.

“I’m not going to be in the same party with Hasan Piker,” Carville said while discussing the future of the Democratic Party and the political changes emerging after recent primary contests.

The comments highlight a larger struggle inside the party: whether Democrats should continue following a more traditional electoral strategy or embrace a more aggressive progressive movement.

Carville Challenges Progressive Direction

Carville specifically pointed toward the rise of democratic socialist candidates and progressive activists who have gained momentum in several recent elections.

He compared the internal Democratic debate to similar ideological shifts that have occurred within the Republican Party, where figures such as Tucker Carlson and Marjorie Taylor Greene have represented a more populist direction.

The longtime Democratic strategist argued that winning elections should remain the party’s primary focus.

“I have one simple philosophy about politics: Winning is everything,” Carville said while discussing the challenges facing Democrats.

Hasan Piker Represents a New Progressive Era

Hasan Piker, one of the most popular political streamers on platforms such as Twitch, has built a large audience among younger progressive voters.

Piker has become an outspoken supporter of progressive candidates, including Michigan Senate candidate Abdul El-Sayed, whose campaign has energized many younger and left-leaning voters.

Speaking with CNN, Piker argued that frustration with traditional Democratic and Republican politics has pushed many voters to search for alternatives.

He pointed to recent Democratic losses, including the defeats of Hillary Clinton in 2016 and Kamala Harris in 2024, as examples of why some voters believe a different approach is necessary.

The Battle Over the Democratic Party’s Future

The disagreement between Carville and Piker represents a much broader conversation happening among Democrats.

Progressive candidates have recently achieved notable primary victories against establishment-backed opponents, creating concerns among some party strategists that a sharper ideological shift could make it harder to win competitive congressional races.

However, supporters of the progressive movement argue that traditional Democratic strategies have failed to inspire enough voters.

Senator Bernie Sanders defended progressive candidates like El-Sayed, suggesting that they could attract independent and even some Republican voters by focusing on issues such as healthcare and economic concerns.

“If you’re a working-class Republican in Michigan, I think you’re going to listen to what El-Sayed says,” Sanders said during an appearance on NBC News’s “Meet the Press.”

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A Defining Moment for Democrats

The clash between Carville and Piker is not simply a disagreement between two political personalities—it reflects a larger question facing Democrats heading into future elections.

Should the party prioritize broad electoral appeal and moderate messaging, or should it embrace a more activist-driven progressive identity?

As younger voices gain influence and traditional strategists push back, the Democratic Party’s internal debate appears far from over.

For now, Carville’s warning has added another headline to a growing conversation about who will define the next generation of Democratic politics.

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Politics

MAGA Revolt Erupts Against Trump’s DHS Chief Markwayne Mullin: “Wrong Guy at the Wrong Time”…

A growing clash inside Donald Trump’s political movement puts Homeland Security Secretary Markwayne Mullin under pressure as hardline immigration activists demand a tougher deportation approach.

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MAGA Turns on Trump DHS Chief Markwayne Mullin Over Immigration Policy Clash
Homeland Security Secretary Markwayne Mullin faces pressure from MAGA supporters over immigration policies as debates intensify inside the Trump administration.

Trump’s DHS Secretary Markwayne Mullin Faces MAGA Backlash as Immigration Debate Explodes

A new political battle is unfolding inside the Donald Trump administration, with a section of the MAGA movement turning against Homeland Security Secretary Markwayne Mullin over accusations that he is taking a softer approach toward immigration policy.

Mullin, who became Secretary of the U.S. Department of Homeland Security (DHS) earlier this year after replacing Kristi Noem, is facing criticism from some of Trump’s strongest supporters who believe the department should focus almost entirely on aggressive deportation efforts.

The controversy has created an unusual political divide, with some MAGA influencers questioning whether Mullin fully represents the immigration agenda that helped define Trump’s campaign.

Immigration Comments Trigger Anger Among Trump Supporters

The backlash intensified after Mullin spoke about immigration reform during the National Governors Association Summer Meeting in Oklahoma.

During his remarks, Mullin argued that immigration policy requires separating legal immigration from illegal immigration while also addressing workforce challenges through employment visa reforms.

“There is a difference between immigrants pursuing legal status and those who aren’t,” Mullin said while discussing the need to balance border security with economic realities.

His comments that some immigrant workers fill labor shortages angered several conservative activists who interpreted the remarks as moving away from a strict deportation-first strategy.

MAGA Influencers Demand a Change at DHS

Several prominent voices within Trump’s political base have publicly criticized Mullin.

Former Border Patrol official Gregory Bovino attacked Mullin after the secretary highlighted the number of people who had legally become U.S. citizens over the past year.

Bovino argued that celebrating legal immigration was inconsistent with the priorities of the movement’s most hardline supporters.

Meanwhile, conservative commentator Jake Posobiec told Politico that there is growing frustration among MAGA activists who want a DHS secretary focused more directly on mass deportations.

Steve Bannon Joins the Criticism

Former Trump adviser Steve Bannon also joined the criticism, suggesting that some Trump allies would prefer acting Director of National Intelligence Bill Pulte to lead the Department of Homeland Security.

Bannon argued that the current moment requires someone who prioritizes aggressive immigration enforcement rather than policies viewed by some conservatives as accommodating.

The criticism highlights a larger ideological struggle within Trump’s coalition over how strictly the administration should approach immigration enforcement.

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Laura Loomer Calls for Mullin’s Removal

Political activist Laura Loomer, who has frequently been described as an influential conservative voice close to Trump, openly called for Mullin to be removed from his position.

Loomer criticized Mullin on social media, claiming he was not aligned with the administration’s immigration goals.

Her comments reflected growing frustration among some activists who believe DHS leadership should adopt a more aggressive posture.

Previous Controversies Added More Pressure

The latest dispute follows earlier criticism involving DHS immigration enforcement policies.

Mullin faced backlash after federal immigration officers were reportedly instructed to temporarily pause certain vehicle stops following incidents involving armed encounters and deaths.

The decision triggered opposition from some conservative supporters, leading Trump to publicly intervene and reaffirm his administration’s commitment to strict immigration enforcement.

White House Defends Mullin

Despite the criticism, the White House has pushed back against claims that Mullin’s position is in danger.

Deputy Press Secretary Abigail Jackson said Trump remains confident in Mullin’s ability to execute the administration’s agenda.

A DHS spokesperson also rejected claims of internal chaos, stating that the department remains focused on protecting the homeland and carrying out the president’s immigration priorities.

A Bigger Fight Over Trump’s Immigration Vision

The controversy surrounding Markwayne Mullin reflects a deeper challenge within the Trump movement: balancing campaign promises of mass deportations with the practical realities of governing a complex immigration system.

For now, Mullin remains in his role, but the growing criticism from influential MAGA voices shows that immigration policy remains one of the most sensitive issues inside Trump’s political coalition.

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Todd Blanche Clears Major Senate Hurdle After Scrapping $1.8 Billion Fund—Will Confirmation Finally Move Forward?

The acting attorney general rescinded a controversial DOJ fund and narrowed an IRS settlement, addressing key concerns raised by Republican senators ahead of a crucial confirmation vote.

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Todd Blanche Nears Senate Confirmation After Ending $1.8B DOJ Fund and Revising IRS Settlement
Acting Attorney General Todd Blanche arrives closer to Senate confirmation after rescinding the controversial $1.8 billion DOJ fund and revising the IRS settlement agreement.

Todd Blanche Takes Key Step Toward Senate Confirmation After Dropping Controversial DOJ Fund

WASHINGTON, D.C.Todd Blanche has moved significantly closer to securing Senate confirmation as the next U.S. Attorney General after formally eliminating a controversial $1.8 billion anti-weaponization fund and revising provisions tied to an Internal Revenue Service (IRS) settlement involving President Donald Trump and his family.

The move comes after Republican Senators John Cornyn of Texas and Thom Tillis of North Carolina expressed concerns over the Justice Department’s earlier proposal, delaying Blanche’s nomination until additional legal assurances were provided.

According to congressional aides, Blanche has now fulfilled those requests through a formal order that permanently rescinds the proposed fund and clarifies the scope of tax protections included in the earlier settlement.

A Fund That Never Became Operational

The now-cancelled fund had sparked controversy despite never becoming active.

According to the U.S. Department of Justice, no governing board was appointed, no public claims process was created, no money was distributed, and no federal funds were transferred before the initiative was terminated.

Lawmakers had voiced concerns that, if revived, the program could potentially allow payments to individuals convicted in connection with the January 6 United States Capitol attack—an issue that generated strong political opposition among several Senate Republicans.

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IRS Settlement Narrowed

Another key issue involved the scope of an IRS audit settlement connected to President Trump and other plaintiffs.

Blanche’s updated order makes it clear that the agreement applies only to previous tax matters involving the original parties and does not provide protection for future IRS filings or future audits.

The clarification was considered an important concession for senators seeking written guarantees before advancing the nomination.

Republican Support Appears to Grow

A spokesperson for Senator John Cornyn confirmed that an agreement had been reached with the Justice Department, suggesting the Texas Republican is now prepared to support Blanche’s confirmation when the Senate Judiciary Committee votes on the nomination.

Senator Thom Tillis had not officially announced his position following the agreement, though earlier comments suggested he viewed Blanche as qualified while objecting to the proposed fund.

With Democrats expected to unanimously oppose the nomination, Republican unity will be critical during Tuesday’s committee vote.

Blanche Responds Publicly

Following the announcement, Blanche addressed the development on his official X account, saying his team had spent weeks working with senators to answer questions surrounding the nomination.

He stated that the Justice Department welcomed constructive discussions with members of Congress and confirmed that the department had issued an updated order regarding the previous IRS settlement.

What’s Next?

Blanche has served as Acting Attorney General since assuming the role after Pam Bondi stepped down earlier this year.

With the controversial fund now formally cancelled and legal language revised, attention shifts to Tuesday’s Senate Judiciary Committee vote, where Republicans are expected to determine whether Blanche’s nomination advances to the full Senate.

The outcome could shape the leadership of the Justice Department at a politically sensitive time, as Washington continues to grapple with legal disputes involving the Trump administration and broader debates over federal law enforcement.

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