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Episode 1501Dec 11, 2025

Why the Fed cut interest rates

This is the third time this year Fed Chair Jerome Powell slashed interest rates.

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Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on Dec. 10, 2025, in Washington, D.C.
Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on Dec. 10, 2025, in Washington, D.C.
Chip Somodevilla/Getty Images

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The Federal Reserve cut interest rates by a quarter of a percentage point Wednesday. And this decision comes as President Donald Trump continues to put pressure on the supposedly independent agency to move the economy the way he wants. Plus, the president is reportedly beginning final interviews for Fed Chair Jerome Powell’s potential successor.

Here’s everything we talked about today:

The Team