In the press conference on October 29, 2025, Federal Reserve Chair Powell announced a 0.25 percentage point reduction in the policy interest rate to support maximum employment and stable prices. The U.S. economy shows moderate growth with a GDP increase of 1.6%, signaling stronger consumer spending despite a slowdown in job creation. Although inflation has eased from its mid-2022 highs, it remains above the Fed's target at 2.8%. The labor market displays cooling trends, with low job gains attributed to a shrinking labor force and reduced demand. Risks are seen both to employment and inflation, creating a challenging policy landscape. The Fed plans to halt the reduction of its securities holdings starting December 1, as they assess risks and incoming data. Powell emphasized the significance of balancing unemployment and inflation targets amid divergent views within the committee regarding future rate cuts and monetary policy direction.