Review: FOMC Cuts Rates In October, And Signals That More Easing in December is “Not a Foregone Conclusion”

by Brunello Rosa and Nato Balavadze

In this paper, we discuss:

• The state of the U.S. economy, in which the labor market is gradually cooling and inflation remains somewhat elevated;
• The Fed’s decision to cut rates today, and what it could do ahead;
• The Fed’s signal of a shift in managing its $6.6 trillion balance sheet, and
• The market reaction to the Fed’s decision today.

Download PDF: Fed Review October 2025