December 10, 2025
Jerome H. Powell
December 10, 2025 FOMC Press Conference
- The chair said the federal government shutdown likely weighed on economic activity in the current quarter, with effects mostly offset by higher growth next quarter.
- The chair said the median SEP projection for real GDP growth is 1.7 percent this year and 2.3 percent next year, with the shutdown accounting for two-tenths of the difference.
- The chair said the median SEP projection for the unemployment rate is 4.5 percent at the end of this year, edging down thereafter.
- The chair said the median SEP projection for total PCE inflation is 2.9 percent this year and 2.4 percent next year, falling to 2 percent thereafter.
- The chair said reserve management purchases will amount to $40 billion in the first month, potentially remaining elevated for a few months before declining.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon. My colleagues and I remain squarely focused on achieving our dual-mandate goals of maximum employment and stable prices for the benefit of the American people. Although important federal government data for the past couple of months have yet to be released, available public- and private-sector data suggest that the outlook for employment and inflation has not changed much since our meeting in October. Conditions in the labor market appear to be gradually cooling, and inflation remains somewhat elevated.
In support of our goals, and in light of the balance of risks to employment and inflation, today the Federal Open Market Committee decided to lower our policy interest rate by ¼ percentage point. As a separate matter, we also decided to initiate purchases of shorter-term Treasury securities solely for the purpose of maintaining an ample supply of reserves over time, thus supporting effective control of our policy rate. I will have more to say about monetary policy and its implementation after briefly reviewing economic developments.
Although some key government data have yet to be released, available indicators suggest that economic activity has been expanding at a moderate pace. Consumer spending appears to have remained solid, and business fixed investment has continued to expand. In contrast, activity in the housing sector remains weak. The temporary shutdown of the federal government has likely weighed on economic activity in the current quarter, but these effects should be mostly offset by higher growth next quarter, reflecting the reopening. In our Summary of Economic Projections, the median participant projects that real GDP will rise 1.7 percent this year and 2.3 percent next year, somewhat stronger than projected in September.