Tony Kim
Oct 30, 2025 13:38
The Federal Reserve has reduced rates by 25 basis points amid concerns over employment risks, according to Jerome Powell. The move also marks an end to quantitative easing.
The Federal Reserve has enacted another rate cut, reducing the federal funds target by 25 basis points to a range of 3.75% to 4.00%, according to CoinMarketCap. This decision, announced on October 29, 2025, aligns with the Fed’s ongoing strategy to manage economic conditions, but it also raises concerns about potential employment risks.
End of Quantitative Easing
In addition to the rate cut, the Federal Reserve has decided to cease its quantitative tightening measures by halting the balance sheet runoff by December. This marks a significant shift in the Fed’s monetary policy, which has been in place to moderate the balance sheet expansion that occurred during previous years of economic stimulus.
Impact on Employment
Despite the intended economic benefits of the rate cut, Federal Reserve Chair Jerome Powell highlighted growing concerns about a softening labor market. “In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen in recent months,” Powell noted. This statement underscores the Fed’s awareness of the potential negative impacts on job growth as a result of its monetary policy adjustments.
Data Challenges Amid Government Shutdown
The Federal Reserve’s decision-making process is currently challenged by a lack of comprehensive economic data, a consequence of the ongoing U.S. government shutdown. This data vacuum complicates the Fed’s ability to fully assess economic conditions and make informed policy decisions.
For further insights into the Federal Reserve’s recent actions, visit the original article on CoinMarketCap.
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