Business
Fed cuts rate but future easing uncertain
Danielle KayeBusiness reporter
ReutersThe US Federal Reserve has lowered interest rates for the third time this year, even as internal divisions create uncertainty about additional cuts in the coming months.
The central bank said on Wednesday it was lowering the target for its key lending rate by 0.25 percentage points, putting it in a range of 3.50% to 3.75% – its lowest level in three years.
But policymakers disagree about how the Fed should balance competing priorities: a weakening job market on the one hand, and rising prices on the other.
The Fed’s economic projections released on Wednesday suggest one rate cut will take place next year, although new data could change this.
Fed chair Jerome Powell said central bankers need time to see how the Fed’s three cuts this year work their way through the US economy. Policymakers will closely examine incoming data leading up to Fed’s next meeting in January, he added.
“We are well-positioned to wait to see how the economy evolves,” Powell told reporters.
Those hoping for interest rates to keep coming down, including President Donald Trump, might have to wait.
The Fed is facing a “very challenging situation” as it confronts risks of rising inflation and unemployment, Powell said, adding: “you can’t do two things at once”.
The decision to lower rates on Wednesday was not unanimous, suggesting widening divisions among central bankers over the outlook for the US economy.
Three Fed officials broke ranks and officially dissented.
Stephen Miran, who is on leave from his post leading Trump’s Council of Economic Advisers, voted for a larger 0.5 percentage point cut.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, and Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, voted to hold rates steady.
Trump, who has repeatedly urged Powell to lower rates, said after the meeting on Wednesday that the Fed’s cut could have been “at least doubled”.
“Our rates should be much lower,” he said at a roundtable at the White House. “We should have the lowest rates in the world.”
A data blackout during the longest-ever US government shutdown, which ended in November, has left policymakers partially in the dark about the state of the economy. But concerns about a slowing job market continue to outweigh inflation fears, at least for now.
The unemployment rate ticked up from 4.3% to 4.4% in September, Labor Department figures showed in a delayed report released last month. Cutting interest rates is aimed at stimulating the job market by creating lower borrowing costs for businesses.
Fears about tariff-driven inflation had taken centre stage earlier this year when Trump pushed forward with sweeping tariffs on many of the country’s largest trading partners.
Inflation is still above the Fed’s 2% target. In September, it hit 3% for the first time since January.
But while tariffs appear to be boosting some consumer prices, recent milder-than-expected inflation readings have allowed the Fed to focus on boosting the labour market by lowering rates, analysts said.
Dissents and disagreements
Still, policymakers remain divided over the path forward for interest rates.
Asked about disagreement among policymakers, Powell acknowledged that it’s “unusual” to have “persistent tension” between the Fed’s two mandates to keep prices stable and unemployment low.
“And when you do, this is what you see,” he said, referring to growing divisions.
Still, Powell characterised the internal debate between Fed officials as thoughtful and respectful.
“We come together and we reach a place where we can make a decision,” he said.
The central bank’s so-called dot plot, a quarterly anonymous economic forecast, showed on Wednesday a median expectation for one additional 0.25 percentage point cut in 2026.
That prediction was unchanged from the previous dot plot in September.
Central bankers are poised to have a bit more clarity next week, with the expected release of official data on the labour market and inflation for November.
The incoming data could shift policymakers’ outlook, potentially bolstering calls for further easing next year if there are new signs that the job market is stalling.
Who will succeed Powell?
Trump’s search for Powell’s replacement as Fed chair, once his term ends next May, is adding to uncertainty about the path forward for Fed policy.
Trump could announce his pick as soon as within the next few weeks.
Kevin Hassett, a long-time conservative economist and key Trump economic adviser, is seen as the front-runner to succeed Powell.
A Trump loyalist, Hassett served as chair of the White House Council of Economic Advisers during Trump’s first term and now leads the National Economic Council.
He has been a stalwart defender of Trump’s economic policies, downplaying data showing signs of weakness in the US economy, doubling down on allegations of bias at the Bureau of Labor Statistics and backing Trump’s handling of the Fed.
Hassett’s allegiance to the president has drawn questions from analysts about whether he would act independently and how much sway he would have with other members of the board.
Other names that have been floated for the Fed chair include economist Kevin Warsh, current Fed Governor Christopher Waller and even Treasury Secretary Scott Bessent.
Trump is “still making up his mind, and he’s looking for someone who will be in his way of thinking,” Thomas Hoenig, a distinguished senior fellow at the Mercatus Center, told the BBC.
The candidates, he added, “have to project that they will be independent, or the markets will become quite nervous – and that will create more volatility”.
Asked on Wednesday whether Trump’s search for a new Fed chair is hindering his job or changing his thinking, Powell responded with a resounding “no”.
Last Updated:
Meta India appoints Aman Jain as Head of Public Policy. Formerly at Amazon India and Google.
Meta India Appoints Aman Jain as New Head of Public Policy
Meta India has appointed Aman Jain as the new head of Public Policy to lead the company’s policy strategy and engagements with the government in India. He will join the company early next year, according to the press release.
He is currently the Director of Public Policy at Amazon India, where he leads policy strategy, stakeholder engagement and regulatory work. He has been in this role since November 2023.
Before joining Amazon, Aman spent over seven years at Google, holding multiple leadership positions in public policy and industry partnerships.
Across these roles, he led major engagements with ministries, regulators, industry bodies and global teams—especially around technology policy, fintech, digital ecosystems, competition, data governance and online safety.
Before his corporate roles, Aman also served in AIESEC International for over seven years, eventually becoming the President & CEO (Global). He led a global team across 110+ countries, created the mid-term organisational vision, oversaw governance reforms, and represented youth voices at global platforms like COP15 and the World Business Summit on Climate Change.
He has also led a private enterprise as Director at Peter & David Enterprises Pvt Ltd.
Jain completed his dual Master’s in Public Administration and International Relations.
Simon Milner, Vice President of Policy, Asia Pacific, India, is a strategic market for Meta. As the country’s digital economy accelerates across areas such as AI, emerging tech and the creator economy, Meta aims to help build a more inclusive, trusted, and future-ready internet ecosystem for India.
I’m pleased to welcome Aman as Head of Public Policy in India. His extensive experience in public policy and technology, will help Meta be an even more effective partner to regulators and industry stakeholders in developing an enabling policy environment. He will also be a strong addition to Meta’s APAC Policy leadership team.
Click here to add News18 as your preferred news source on Google. December 12, 2025, 11:25 IST
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A new high on Wall Street! Dow and S&P 500 set new records; Nasdaq dragged down by Oracle results – The Times of India
Wall Street closed on a split note on Thursday as the Dow Jones Industrial Average and S&P 500 seized spotlight with their new record highs while Nasdaq traded in red. The Dow Jones Industrial Average and the S&P 500 climbed to fresh milestones on Thursday, lifted by investors still riding the momentum set off by the Federal Reserve’s latest rate cut. The Dow rose 1.3%, driven by strong gains in banks and industrial stocks, while the S&P 500 also pushed into record territory, ending at 0.21% gain. The rally followed an upbeat session in Europe and a mixed day in Asia, with global markets continuing to respond positively to the Fed’s less hawkish tone on Wednesday (local time). But the Nasdaq’s 0.3% dip highlighed the market’s lingering nerves around AI-linked valuations. The Nasdaq, however, was weighed down by a sharp slump in Oracle shares that reignited long-standing worries about the soaring cost of artificial intelligence bets.“Even as investors were reassured by the Fed’s latest rate cut, familiar concerns about AI are still very much top of mind right now,” Deutsche Bank managing director Jim Reid told AFP.The concerns resurfaced after Oracle revealed late on Wednesday that its quarterly revenue had fallen short of expectations and that it had ramped up spending on data centres to expand AI capacity. The stock sank 10.8% by the close, having earlier fallen even further.Dave Grecsek of Aspiriant Wealth Management said the reaction highlighted the market’s discomfort with the scale of AI-related investments.“There’s still a lot of apprehension about how sustainable some of these capital spending plans are, what the return on those investments are, and especially now that they’re financed with debt,” he said, as cited by AFP.Last month, global markets briefly faltered as investors were cautious by the AI bubble concept, questioning whether the massive sums flowing into artificial intelligence risked inflating a bubble that could eventually burst.The Fed’s rate cut, its third in a row, was anticipated, but an unusually high number of dissenting votes has clouded expectations over where borrowing costs are headed next.“Investors have shrugged off the Fed’s latest reduction in US borrowing costs as it is becoming harder to guess where rates might go next,” said AJ Bell investment director Russ Mould.Fed officials remain split on the outlook for 2026, including whether more cuts will be needed and how many. Still, eToro US analyst Bret Kenwell noted that Fed Chair Jerome Powell pointed out that none of the policymakers foresee rate hikes in 2026 in their baseline scenario.“The lack of an outright hawkish tone from the Fed combined with its third consecutive rate cut could pave the way for a potential year-end rally in equities, provided that next week’s macroeconomic data doesn’t derail the recent bullish momentum,” Kenwell said.The reduction brings interest rates to their lowest level in three years as policymakers attempt to shore up a labour market that has shown signs of strain throughout 2025.The dollar weakened while oil prices slipped following the decision.Among corporate movers, Disney added 2.4% after unveiling a three-year licensing agreement with OpenAI, giving users the ability to create short AI-generated videos featuring popular Disney characters.
Business
Top stocks to buy today: Stock recommendations for December 12, 2025 – check list – The Times of India
Stock market recommendations: According to Bajaj Broking Research, the top stock picks for December 12, 2025 are Eternal, and Divi’s Laboratories. Here’s its view on Nifty and Bank Nifty:Index View: NiftyBenchmark indices traded in a range with corrective bias and is currently placed around 25,900 levels as domestic markets tracked the global risk-off tone, pressured by persistent FII selling, a softer rupee, and ongoing uncertainty around US–India trade talks. In the short term, market direction will hinge on central bank commentary and clarity on trade-related developments. In the near term, market trajectory is likely to be dictated by currency stabilization dynamics, especially whether the rupee can find a durable floor. Moreover, clarity on evolving India–US trade negotiations could influence sector-specific outlooks, particularly in export-linked and tariff-sensitive industries. Nifty has key support placed at 25,700–25,800, which aligns with the bullish gap from November 12, the 50-day EMA, and a key retracement zone of the prior uptrend. Sustaining this band will be crucial for continuing the positive momentum of the last 3 months.We expect the Nifty to consolidate in the range of 25,700–26,200. A clear breakout or breakdown will determine the next directional move.A close below the key support area of 25,700 will signal extension of the corrective decline towards the 100 days EMA placed around 25400 levels. On the higher side, a move above the recent swing high of 26,200 will signal extension of the rally towards 26,500 levels in the coming weeks. Nifty BankBank Nifty traded in a range, digesting its recent strong gains. The index consolidated in a 700-points range oscillating in a positive and negative territory.We expect the index to extend consolidation and form a base in the range of 58500-60100 in the coming sessions. A follow-through strength above recent high 60,100 will open further upside towards 61,000 levels in the coming weeks.The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels being the confluence of the last two weeks lows and recent breakout area. Holding above the support area will keep the short-term bias positive.
Stock Recommendations:
EternalBuy in the range of ₹ 285-292
Eternal has been in a corrective phase over the past two to three months and is now consolidating around a major demand zone. This technical setup points to a favorable risk-reward profile, suggesting the potential for a bullish reversal and a rebound from its current oversold levels.The current corrective phase seems to be losing momentum, with price action hinting at a possible rebound toward the ₹323 area in the coming months. This zone aligns with the 50% Fibonacci retracement of the entire drop from ₹368 to ₹280 and also matches the November 2025 high, strengthening its significance as a major resistance level.Divi’s LaboratoriesBuy in the range of 6350-6450
The stock is at the cusp of generating a breakout above a falling channel signaling resumption of up move thus offers fresh entry opportunity.The stock has already taken 6 weeks to retrace just 50% of its preceding 5 weeks rally (5636-6904). A shallow retracement signals a higher base formation and an overall positive structure.We expect the stock to head towards 6850 levels being the trendline resistance joining the highs of July and November 2025.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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