US EditionFed to cut rates again in December on weakening job market, say most economists: Reuters poll
Eighty percent of economists predict a 25 basis-point Federal Reserve rate cut in December due to labor market weakness despite inflation remaining above 2%, poll shows.
- On December 10, a Reuters poll shows 80% of economists expect the FOMC to cut rates by a quarter point, taking the fed funds rate to 3.50%-3.75% in line with market pricing.
- Labor market indicators show cooling, which economists cite as the main driver for a cut, with private payroll data revealing job losses and nearly 70% of respondents reporting stagnant job growth recently.
- Growth and jobless‑rate projections bolster economists' case for policy easing as poll medians show U.S. economy growth slowing from 3.8% to 1.0% and unemployment rising from 4.3% to 4.5% next year.
- Chair Jerome Powell has cautioned that a December cut is not a foregone conclusion after last month's quarter-point cut drew rare dissent, while poll respondents warned inflation above 2% through 2027 could affect Fed credibility.
- FOMC disagreement about another cut this year complicates consensus as members remain divided amid missing data from the longest-ever government shutdown, while Senate temporary funding bill approval Monday could clear fog.
10 Articles
10 Articles
Fed to cut rates again in December on weakening job market, say most economists: Reuters poll
The U.S. Federal Reserve will again lower its key interest rate by 25 basis points next month to underpin a weakening labor market, according to 80% of economists polled by Reuters, up slightly from a poll taken last month.
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Global FX Market Summary: Fed Dovish Pivot, USD Softness & AI Tech Rally Resurgence 24 November 2025
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Bias Distribution
- 57% of the sources are Center
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