The Latest Breaking News from Jerome Powell

“Since this rate cut was no surprise, the markets have taken it in stride,” 43-year mortgage industry veteran Melissa Cohn told Fortune.

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Jerome Powell said most consumer consumption comes from the rich. “The top third accounts for way more than a third of the consumption ... So it’s a good question how sustainable that is.”

December S&P 500 E-Mini futures (ESZ25) are down -0.35%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.65% this morning as Oracle rekindled worries about the massive spending tied to artificial intelligence, overshadowing optimism over the Federal Reserve’s latest interest-rate cut.

Asian shares are mixed after the U.S. stock market again approached its record high following the Federal Reserve’s cut in its main interest rate

The Federal Open Market Committee lowered the federal funds rate for the third meeting in a row despite elevated inflation.

It all comes down to the reason behind the weakness in unemployment and Powell’s diagnosis of the “low-hire, low-fire” economy of 2025.

The Fed chair said underlying job growth could already be below zero, with official payroll figures overstating reality by tens of thousands each month.

The basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.

Lower rates from the Fed can bring down borrowing costs for mortgages, auto loans, and credit cards over time, though market forces can also affect those rates.

The Fed is clearly deeply divided. Three officials dissented, in opposite directions.