Story perspectives

Fed Cuts Rates Again Amid Rising Unemployment, Leadership Change Looms

12/11/2025

Center

Trump Reshapes Fed

On December 10, 2025, the Federal Reserve cut rates by 0.25 percentage points to 3.5%–3.75%.
This marks the third consecutive rate cut amid rising unemployment and slowing job growth.
U.S. President Donald Trump plans to replace Jerome Powell, whose term ends in May 2026.
Fed independence faces scrutiny as Trump reshapes leadership.

Left

Trump Critiques Fed

On December 10, 2025, U.S. President Donald Trump accused President Biden of improperly appointing members to the Federal Reserve (the Fed) and suggested autopen signatures.
He ordered his administration to investigate the allegations and criticized the Fed's recent rate decisions.
Trump called Fed Chair Jerome Powell a "bad head of the Fed" and said he is considering a new nominee for the position.
The White House has not responded to these claims.

History

Historical Context

The 2008 financial crisis prompted the Federal Reserve, under Chairman Ben Bernanke, to cut interest rates to near-zero, a historic move aimed at stimulating the economy. This response was crucial as unemployment peaked at 10% in October 2009. Today, similar rate cuts under Jerome Powell reflect ongoing challenges in maintaining economic stability amid political pressures and scrutiny of the Fed's independence.

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Trump Reshapes Fed

On December 10, 2025, the Federal Reserve cut rates by 0.25 percentage points to 3.5%–3.75%.
This marks the third consecutive rate cut amid rising unemployment and slowing job growth.
U.S. President Donald Trump plans to replace Jerome Powell, whose term ends in May 2026.
Fed independence faces scrutiny as Trump reshapes leadership.

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