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Fed Cuts Rates to 3.5%-3.75%

Are rate cuts an appropriate response to weakening employment, reckless policy risking inflation, or a measure that failed to go far enough?

Published 2 days ago

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Above: Federal Reserve Chair Jerome Powell speaks during a press conference in Washington, D.C., on Dec.10, 2025. Image credit: Chip Somodevilla/Getty Images

The Spin

Pro-establishment narrative

The 0.25 basis point reduction appropriately responds to rising downside risks in employment, while keeping a watchful eye on inflation. Job gains have slowed, and unemployment has crept up, justifying a careful recalibration of monetary policy that balances the Federal Reserve’s dual mandate, while maintaining its flexibility to adjust to evolving market conditions.

Federal Reserve Board

Establishment-critical narrative

The Federal Reserve’s latest rate cuts are a dangerous mistake that will accelerate inflation without delivering real job growth. If cutting interest rates was the answer, why is America enduring the weakest labor market since 2020, despite a 150 basis points reduction? This reckless policy ignores economic reality and risks further destabilizing an already struggling economy.

Charlie Bilello on X

Pro-Trump narrative

Powell has once again failed to deliver for the American people in his capacity as chair of the Federal Reserve. At the very least, the U.S. desperately needed a significant cut to the federal funds rate of 0.5% to kickstart the economy. Instead, Powell could only offer a paltry 0.25% cut that will fail to have any real impact, underscoring his economic incompetence.

Trump White House on Youtube