US News
LAST UPDATE: September 24, 2025
Powell Describes Rates as ‘Modestly Restrictive,’ Keeping Door Open to Cuts
Federal Reserve Chair Jerome Powell has described the current level of interest rates as “modestly restrictive,” signaling that the door remains open for future rate cuts. He also expressed concern about a weakening labor market, suggesting the Fed is balancing inflation risks with the need to support job growth.
Insight
Powell’s comments indicate a cautious but flexible approach to monetary policy. By describing rates as “modestly restrictive,” he is suggesting that the Fed believes it has room to ease policy without reigniting inflation, thus providing a subtle but clear signal to the markets.
Fed’s Powell says no major financial stability risks looming right now
Fed Chair Jerome Powell stated that he does not see any major financial stability risks looming, despite high share prices. He emphasized that the Fed is not targeting specific asset prices but is monitoring for systemic risks in the financial system.
Insight
Powell’s statement aims to reassure markets that the financial system is robust and that high asset valuations, while noted, are not yet seen as a systemic threat. This perspective reinforces the Fed’s focus on broader economic conditions rather than specific market levels.
Fed’s Goolsbee Says Inflation Dictates Careful Pace of Rate Cuts
Chicago Fed President Austan Goolsbee stated that the pace of future rate cuts will be dictated by inflation data. He said that while the Fed has room to cut rates, it must do so carefully to avoid reigniting inflationary pressures.
Insight
Goolsbee’s comments highlight the ongoing tension within the Fed between supporting economic growth and controlling inflation. His emphasis on a “careful pace” suggests that the Fed will remain data-dependent and will not rush into aggressive rate cuts, even in the face of political pressure.
Fed’s Bowman Says FOMC Needs to Act Decisively to Support Jobs
Fed Governor Michelle Bowman has said that the FOMC needs to act decisively to support the labor market. She expressed concern that a weakening job market could require more significant monetary policy adjustments to prevent further economic slowdown.
Insight
Bowman’s stance is more dovish than some of her colleagues and indicates a focus on the employment side of the Fed’s dual mandate. Her call for “decisive” action suggests a potential split within the FOMC on the appropriate speed and magnitude of future rate cuts.
Trump Rejects Democrats’ Demands as US Nears Shutdown Brink
President Trump has rejected the demands of Democrats, putting the US on the brink of a government shutdown. The two sides remain at an impasse over a funding bill, with Democrats seeking to include provisions that Trump has deemed unacceptable.
Insight
The standoff highlights the persistent political polarization in the US, where fundamental disagreements over policy can lead to a government shutdown. Trump’s rejection of a deal and the Democrats’ refusal to concede indicate that a resolution will be difficult to achieve, with significant economic and social consequences.
