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U.S. Rare Earths Surge as Government Battles China’s Market Control

Rare Earths Gain Momentum Amid U.S. Efforts to Counter China’s Dominance

Published Mon, Oct 20 2025, 9:17 AM EDT
By Tasmin Lockwood

The United States and China face a clear challenge. Both fight for control over rare earth minerals. US-listed rare earth stocks jumped on Monday. Investor interest and shifts in government policy drove this rise.

China’s Longstanding Control and U.S. Response

China has long held rare earth elements. These minerals are key for modern technology. They help make semiconductors, fighter jets, electric car motors, lasers, and more. China runs a large part of the supply chain. US officials now work to build a strong domestic system. Trade tensions have grown as China sets tighter limits. In an interview, a US Treasury leader said the government plans a fixed price to stop market abuse by Chinese tactics.

Market Rally and Government Backing

Monday saw clear gains for companies in the rare earth chain:

  • NioCorp rose 9.3% soon after the market opened.
  • Energy Fuels climbed 3.8%.
  • USA Rare Earth increased 2.9%.
  • Perpetua Resources added 3.4%.
  • MP Materials, the largest US rare earth miner, gained 1.8%.

Canadian firms also fared well. Lithium Americas went up 2.6% while Trilogy Metals increased 2.2%.

This market rise fits with steps taken by the US Defense Department. In July, the department made a deal with MP Materials. The deal gave the government a share, set a fixed price on rare earths, and signed a buying agreement. It shows strong federal support for US production.

Anticipated Government Involvement

Investors hope the US will back more mining companies. A recent report rated USA Rare Earth as a solid performer. The report hints that more firms might share in government support under a wider plan.

Michael Silver, CEO and chairman of American Elements—a distributor of rare earth minerals—said on CNBC’s Squawk Box that the US holds enough heavy metals for military needs. He warned that a slow supply chain can harm production of electric cars, lasers, and other tech items. He said that opening new mines must be seen as a national priority with likely government funds and support.

China’s Export Restrictions

China now asks foreign companies to get approval before shipping rare earths. Firms must also state how they will use the materials. These tighter rules show that China sees these minerals as a valuable asset. This move pushes the US to speed up work on a secure home supply.

The rare earth sector, once small and ignored, now sits at the center of global strategy and tech progress. With government incentives and clear deals, US rare earth companies and investors appear ready for growth as the supply chain changes.

For continuous updates on the rare earth industry and related market developments, stay tuned to CNBC.

Sources:

  • CNBC exclusive interview with U.S. Treasury Secretary Scott Bessent
  • Market data as of October 20, 2025
  • Statements from American Elements CEO Michael Silver
  • U.S. Department of Defense agreements with MP Materials

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Scotiabank’s Workforce Transformation: A Year of Layoffs Amid Corporate Restructuring

Scotiabank Announces Layoffs Across Multiple Departments Amid Organizational Transformation

By Naimul Karim | Published October 17, 2025

Scotiabank—the Bank of Nova Scotia—has started layoffs in Canada. The bank did not reveal the number of positions. Sources confirm that layoffs have run since September.

A Strategic Shift Towards Efficiency and Growth

The bank shifts focus. Scotiabank uses its resources to grow and work more efficiently. In a statement late in September the bank said it must manage resources well to serve clients and keep growth steady.

“Aligning our organization and our resources around our focus areas for growth, including finding ways to be more efficient, is a part of managing our bank effectively,” the bank said. “We will continue to prioritize and invest in areas that best meet the needs of our clients and deliver sustainable growth.”

Aris Bogdaneris, head of Scotiabank’s Canadian business, sent a memo to staff. He said a change this big is hard. He noted the bank must cut back on tasks that take time and add little value.

Employee Experiences and Communication

Employees got short, tight messages. One HR team member said a call informed them about the staff cuts, but there was little chance to ask questions. Staff talk shows that cuts come from many parts of the bank.

Return-to-Office Policy and Broader Industry Context

The layoff news came after a return-to-office announcement. This marked a big change after long remote work. Scotiabank is not alone. In May, Toronto-Dominion Bank cut about two percent of its workforce as changes began.

Looking Ahead

Scotiabank now aims to blend efficiency with client needs and growth. The bank has not given more details on further cuts or future changes.

These events mark a clear shift in Canada’s financial world. Banks adjust as economic and work-place trends evolve.

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U.S. Budget Deficit Declines in 2025: Record Tariffs and Debt Payments Shape Fiscal Landscape

U.S. Budget Deficit Narrows in 2025 Amid Record Tariffs and Rising Debt Payments

October 16, 2025 — The U.S. budget moved to a lower deficit in fiscal year 2025. Tariff collections reached new records. They helped cover higher spending on our growing debt. The Treasury Department shared the news on Thursday. Even with tough economic times, the government cut its shortfall compared to last year.

Deficit Down Slightly Despite Rising Costs

The federal government ended 2025 with a $1.78 trillion budget deficit. This number is $41 billion less, about 2.2% lower than the 2024 deficit. This amount is still high by past standards. But it shows progress in handling the red ink during hard fiscal times.

In September, the fiscal year closed with about $5.2 trillion in revenue, even though spending went over $7 trillion. A large jump in customs duties, driven by tariffs set earlier this year, kept the result from worsening.

Tariff Collections Reach New Highs

Tariff revenues reached $202 billion. This jump is 142% higher than in 2024. The strong rise came with tariffs on imported goods set by President Donald Trump. In the month of September alone, tariff payments hit a record $30 billion. That month increased by 295% compared to the same month last year.

These strong tariff revenues brought a September surplus of $198 billion. This new record gave a needed boost to government funds.

Debt Payments Hit Record Levels

Even as tariff money improved the numbers, the government had to cover very high interest on the growing national debt. Now, the U.S. holds $38 trillion in debt. At the same time, interest payments climbed.

Total interest on the debt passed $1.2 trillion in 2025. That is a new record and about $100 billion more than in 2024. Without counting interest earned from its own investments, net interest payments came to $970 billion. This amount is $57 billion more than defense spending. Debt service became the fourth-largest part of the federal budget, after Social Security, Medicare, and healthcare costs.

Fiscal Metrics and Economic Outlook

Officials in the Treasury now say that the budget deficit-to-GDP ratio will fall to 5.9% for 2025. This is a small improvement but still above the usual 3% seen when the economy is stable. The ratio has stayed near 6% since 2022 as fiscal stress continues.

Treasury Secretary Scott Bessent showed guarded hope last week. He said, “We’re on our way” to cutting the deficit burden. He mentioned forecasts by the Congressional Budget Office that point to a ratio below 6%.

Impact on Inflation and Monetary Policy

Tariffs raised funds, but they also brought a worry for higher prices on some goods. So far, price rises on these items have been slow and steady rather than sharp.

Officials at the Federal Reserve have signaled a possible cut in base interest rates. Their view is that the price effects from tariffs will not last long. The current federal funds rate is 4.00% to 4.25%.

Summary of Key Figures:

  • 2025 Budget deficit: $1.78 trillion (2.2% decrease from 2024)
  • Tariff revenues: $202 billion (142% increase from 2024)
  • September 2025 surplus: $198 billion (record)
  • National debt: $38 trillion
  • Interest payments on debt: $1.2 trillion (record high)
  • Net interest payments: $970 billion (exceeds defense spending by $57 billion)
  • Deficit-to-GDP ratio: 5.9% (small improvement)

The data from the Treasury Department shows a close link between trade rules, debt payments, and budget numbers as the U.S. faces tough economic times. In the coming months, leaders will work to balance tariff revenue gains with the risk of rising prices. They will also meet the high costs of paying the national debt.

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BMO’s Bold Strategy: Selling 138 U.S. Branches to First-Citizens Bank While Expanding with 150 New Locations

BMO to Sell 138 U.S. Branches to First-Citizens Bank, Plans to Open 150 New Locations Mainly in California

October 16, 2025 | Financial Post

BMO announced a plan. It will sell 138 U.S. branches to First-Citizens Bank & Trust Co. and open 150 new branches in the next five years. The new branches will be built mainly in California. Each word links closely to the next. This simple chain helps you follow the news easily.

Branch Sale Focused on Midwest Locations

BMO sells branches in the American Midwest. The sale covers branches in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho. It also includes selected branches in Minnesota, one branch in Oregon, and one in Illinois. First-Citizens Bank takes these branches. It also gets about US$5.7 billion in deposits and buys roughly US$1.1 billion in loans. At closing, BMO receives a net deposit premium of five percent. Each fact connects closely to its description.

Expansion Strategy Targeting Growth Markets

After the sale, BMO plans to open 150 new branches. The bank picks U.S. markets with real growth. It focuses mainly on California but will not limit itself to that state. BMO wants to reach more clients and build stronger ties. "This reallocation allows us to deepen client relationships and deliver the full power of BMO to our clients," said Aron Levine, BMO’s U.S. president. For him, each branch is a place for financial advice and a community hub. Every phrase links directly to its purpose.

Financial Impact and Timeline

BMO expects a goodwill impairment charge of about US$75 million. This charge will appear in the fourth quarter, before and after tax. The bank also sees a US$85 million tax expense at closing. The transaction needs regulatory approvals and customary closing conditions. The deal is set to close by mid-2026. Short words and clear links keep the story easy to read.

Looking Ahead

BMO makes a clear choice. It sells smaller or less profitable branches while focusing on high-growth regions. This change helps the bank serve customers and communities more effectively. The realignment strengthens BMO’s position in the U.S. financial markets. Each sentence builds on the last to form a clear chain of ideas.

For further details or inquiries: Naimul Karim at nkarim@postmedia.com

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Impact of Trump’s Tariffs: Switzerland Cuts GDP Forecast Amid Economic Struggles

Switzerland Slashes GDP Forecast Amid Impact of Trump Tariffs on Economy

October 16, 2025 — The Swiss government cuts its growth forecast for 2026. They point to high US tariffs as the main cause. The tariffs come from the Trump era and hit trade hard.

Economic Forecast Revision

Swiss leaders keep the 2025 growth forecast at 1.3%. This rate sits well below earlier trends. They now set the 2026 GDP growth at 0.9% instead of 1.2%. A public note shows “higher US tariffs” bear on the outlook. The extra cost weighs on Swiss industries that depend on exports.

Impact of U.S. Tariffs on Swiss Exports

Switzerland banks on exports. In 2024, the US stood as the largest market for Swiss goods. Trade tensions have led the US to add tariffs as high as 39% on Swiss items.

Key export sectors include:

  • Watches
  • Pharmaceuticals
  • Precious metals
  • Chocolate and skincare products

Pharmaceutical goods are hit hard. They now face a 100% tariff if manufacturers do not build or grow production in the US. This rule puts Swiss items at a clear disadvantage.

Trade Policy Challenges and Market Uncertainty

Swiss officials see the world demand for Swiss goods growing slowly. Trade sectors feel high strain from these tariffs. Some effects can spread to slow the wider economy.

Officials watch changes in US trade policy. A new deal or a drop in tariffs might bring better times. For now, risks remain high.

Swiss Franc’s Strength Poses Additional Headwinds

The Swiss franc stands strong as a safe coin. It has grown more than 12% this year. This growth cools prices and makes it hard for the national bank to fight a drop in prices or very low rates.

Leaders warn that if the franc grows even stronger, problems may pile up. Global risks like rising tensions or debt issues can add more force.

Expert Insights: Risks Mounting for Switzerland’s Economy

Charlotte de Montpellier, senior economist at ING, sees more risk ahead. She marks about 4% of Swiss GDP coming from the US. She estimates that the 39% tariff can cut GDP by about 0.86% in two years.

She now predicts a 0.8% growth rate for 2026. That is nearly half of the early forecast. She warns that slow exports might lead some quarters to shrink.

Melanie Debono, a senior economist at Pantheon Macroeconomics, shares these views. She sees Swiss GDP shrinking in the later half of 2025. Falling exports and low investment feed into the worry. She predicts a 0.2% drop in GDP each quarter in Q3 and Q4. ### Conclusion

Switzerland’s new GDP cut and the heavy US tariffs show the tough spot the country faces in trade today. With uncertain trade rules and a strong currency, the near-term view stays dim. As trade talks and policy shifts continue, Swiss growth rests on solving these trade issues and handling currency change.

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Wells Fargo and Pfizer CEOs Sound the Alarm: U.S. Must Innovate or Risk Losing to China

Wells Fargo and Pfizer CEOs Warn U.S. Must Innovate to Compete with China

At CNBC’s first Invest in America Forum in Washington, D.C., two top business leaders warned about the U.S. losing its place in the world market. Wells Fargo CEO Charlie Scharf and Pfizer CEO Albert Bourla stressed the need for fresh ideas if the U.S. is to stay ahead of China.

AI as a Double-Edged Sword in U.S. Productivity

Charlie Scharf pointed out how AI changes work in finance. AI helps code teams work 20% to 40% faster. It does this by letting computers take on tasks that people once did. Still, it cuts the number of needed workers.

Scharf said, "We will likely have less people, absolutely." He meant that even though work moves faster, Wells Fargo keeps many staff and still gets more done. At other banks like JPMorgan Chase and Goldman Sachs, fewer hires are already the norm as AI joins daily tasks. He also mentioned that new rule changes could adjust money rules at banks. Such rule changes may let smaller banks work better with their communities even when Washington stays still.

China Closing the Gap in Biotechnology and Pharmaceuticals

Pfizer CEO Albert Bourla shared his worry over China’s fast moves in biotech and drugs. He noted that China now files more patents than the U.S. Bourla warned that if this pace persists, China might pull ahead in health science work.

"Five years ago, the U.S. led with a 90%-to-10% share in patents," Bourla said. "That gap is shrinking, and they might soon do better than us if we do not act soon." He urged change in how efforts are made. He said the U.S. must focus on doing more work, trying fresh ideas, and keeping rules steady.

Removing Barriers for Innovation

Bourla also spoke against trade duties and uncertain prices that slow progress. In a move to keep drug prices steady, Pfizer agreed with the previous administration on a three-year break from specific drug duties. This break came with a promise to keep building drug plants in the U.S.

"Tariffs and price shocks are now less of a worry," Bourla said. He added that AI stands as the next phase in medicine. He looks forward to AI cutting the time needed to find new treatments, especially for hard diseases like Alzheimer’s and cancer.

"We have tried for years to find cures. AI will make it happen," he said.

The Call for Investment and Policy Change

Both CEOs agreed that more spending on new tech and factories is needed soon. They stressed that clear and steady rules must back these efforts. This will help the U.S. lead in new fields and counter the rise of China in world markets.

As the U.S. economy meets new tests, leaders like Scharf and Bourla call for a renewed focus on fresh ideas, smart use of AI, and simple rules. This path will help America stay at the front of science and business progress.

For more insights and coverage on U.S. economic policy and innovation, stay tuned to CNBC.

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BMO CEO Urges Canada: Time for Action to Boost Economic Competitiveness and Trade

BMO CEO Voices Concern Over Canada’s Waning Focus on Economic Growth and Trade Barriers

By Naimul Karim | Published October 15, 2025

At the Toronto Global Forum on Wednesday, Darryl White, the CEO of Bank of Montreal, raised concerns about Canada’s slow move on economic growth. He pointed out that Canada talks much about strong economics. However, his speech stressed the need for clear, fast steps. Canada must cut internal trade barriers and build key infrastructure to keep growing. White warned that without real actions, Canada may lose ground, especially when U.S. tariffs challenge it.

A Call for Action Over Conversation

White said, "We need a little less conversation and a little more action." His words link removing trade barriers with speeding up infrastructure projects. These actions aim to fight the economic strain caused by U.S. tariffs. He noted that while talks about tariffs show Canada’s natural resources, the energy in these discussions is at risk. Without firm measures, the country may fall behind.

Tax Competitiveness a Key Concern

White also stressed problems with Canada’s tax rates. He said Canadian taxes are not as low as those in other countries. This fact does not get enough talk in policy circles. "Are we competitive in tone? Are we competitive on tax? I know the answer to that is absolutely not, and that’s not being talked about enough," he said. He explained that investors follow easy paths. Rhetoric on its own will not keep international capital in Canada. White warned that unless changes come, even those attracted by recent positive talks may soon leave.

Internal Trade Barriers: An Opportunity to Strengthen the Economy

White believes that cutting internal trade barriers may boost Canada’s economy. He argued that these actions could cancel out the shocks from uncertain trade talks under CUSMA. This agreement, which helps most Canadian exports to the U.S. avoid tariffs, will be renegotiated next year. White said, "Acting quickly within our own borders to enhance trade fluidity could overwhelm almost any adverse impacts from trade negotiations abroad." He noted that while dealings with the U.S. are on the right track, domestic reforms must come now.

Navigating a Shifting North American Trade Landscape

White discussed U.S. trade policy as well. He said that although the U.S. shows an "America First" approach, it does not mean complete isolation. He claims Canada can still play an important role. "Canadians might not like to hear it, but if Canada were second in an America-first world, this notion of North American advantage starts to become real," he said. Despite tension in the media and politics, both nations work hard to use their strengths.

BMO’s Strong Quarterly Performance Amid Economic Unease

During the talk, White noted BMO’s strong quarterly results. He recognized that major Canadian banks enjoyed a good report. Still, he warned that not all parts of the economy show the same strength. He mentioned that while investment banking and wealth management perform well, slow loan growth and rising credit issues on "Main Street" pose worries. White explained, "Earnings headlines are driven by averages, so caution is warranted. It’s like having your feet in the freezer and your head in the oven—you feel fine on average, but it’s pretty uncomfortable."

Looking Ahead

White is also worried about Canada’s unemployment rate, now at 7.1 percent. He sees labor market challenges that could affect the broader economy if ignored. As Canada prepares for tough trade talks and reforms inside its borders, White’s message is clear. The country must move from talk to action on tax issues and trade barriers. Quick, focused changes are needed for a strong economic future.

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The Resilience of Micro Condos: Why These Small Spaces Will Thrive Amid Market Challenges

Why Micro Condos Will Survive the Current Housing Market Downturn

By Garry Marr, Financial Post – October 15, 2025

Micro condos are small. They measure about 300 square feet. They sit in busy downtown cores like Toronto and Vancouver. Lately, buyers and investors find them less attractive. Yet one real estate expert says these small units will last. They will stay in the housing market as conditions change.

The Current State of Micro Condos

Micro condos were once in high demand. The real estate boom and the pandemic fueled a fast pace of building. Developers built many small units for city dwellers. They aimed to provide affordable homes with rich amenities.

Investors now step back. They see weak capital returns and uncertain rental income. First-time buyers also hesitate. High prices and steep interest rates push them away, even as rents drop. Families have shown little interest too. All these factors lower demand.

Buyer Behavior and Market Dynamics

Greg Zayadi, president of Rennie & Associates Realty Ltd., notes that many buyers pause at the closing stage. They often withdraw from deals. These units need smaller deposits. A small deposit makes it easier for buyers to exit if problems arise. Developers then face the cost of lost pre-sale deposits. This leaves many units unsold.

For example, Vancouver has 12,354 unsold micro condos in Q3. That is a 16% rise from the previous quarter. Prices fall between $950 and $1,200 per square foot. Now, values are near 20% below their peak. Zayadi thinks it may take two years to clear this stock.

Challenges for the Micro Condo Market

New micro condo projects face hard challenges. Builders now struggle to match price, size, and amenity needs. Buyers look for larger units at lower costs. They want homes that suit end-users rather than investors. Technical issues stop developers from combining several small units into one large unit. Plumbing, electrical work, and high renovation costs create obstacles.

Brad Burns, senior associate and design director at Gensler, shares a saving grace. In the student housing niche, micro and nano units work well. In Vancouver projects, units as small as 160 square feet serve students. They offer a full bath, a cooking space, and a work area. Furniture and shared tools add extra help.

The Future of Micro Condos

Micro condos lose their shine for some buyers and investors. Still, experts like Burns and Zayadi see a lasting role. For single people and students, tiny and smart units hold real value. Urban life and minimalism keep these condos in style.

Even if the market calls for larger and cheaper housing, micro condos will not vanish. They will change and serve specific groups. They remain part of the evolving housing scene.

Photo Caption: A 268-square-foot micro condo in Montreal’s Griffintown area includes a pull-out couch to maximize limited space. (Photo by John Mahoney / Montreal Gazette)

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The Economic Divide: How Income Levels Shape Americans’ Confidence in the Future

Stark Divide Emerges in Economic Confidence Between High and Low-Income Americans

A JPMorgan survey reveals a clear gap in how Americans view the economy. The study shows that people with higher income see the future much brighter than those with lower income. Experts call this a "K-shaped" recovery because one group grows while the other falls behind.

High-Income Earners More Optimistic About Economic Outlook

JPMorgan’s Cost of Living Survey shows higher earners feel better about what lies ahead. They give their outlook an average score of 6.2 out of 10. Over half of them score between 7 and 10. This score tells us that richer Americans feel safe with their money and keep spending on extra items.

Low-Income Respondents Report Struggles Amid Inflation

Consumers with lower income give their confidence a lower score of 4.4 out of 10. Fewer than one in four in this group score between 7 and 10. The gap of 30 points shows the stress felt by those with less money. When asked about paying monthly bills, nearly 60% of rich respondents say their bills are easier to pay, while only 37% of middle-income and 30% of low-income earners agree. The rising costs affect low earners the most.

Spending Plans Reflect Confidence Divergence

Higher-income Americans plan to spend more on non-essential goods over the next year. In contrast, those with lower income work within tight budgets and focus on basic needs first.

Broader Trends Affirm Income-Based Confidence Gap

The survey fits with other national data. The University of Michigan’s Consumer Sentiment Index shows that top earners score about 25% higher than those at the bottom. This finding supports the view of an uneven recovery.

Understanding the "K-Shaped" Economy

In a "K-shaped" recovery, the strong keep growing while the weak get left behind. People with good finances continue to spend and grow financially, while those with less face growing difficulties.

This split in economic views matters for leaders, businesses, and citizens alike. The findings call for measures to help those hit hardest by rising prices and money stress.

As inflation hits, the survey paints a clear picture of an economy where wealth and strain live side by side.

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Fed’s Powell Hints at End of Tightening Program Amid Uncertain Rate Outlook

Fed Chair Jerome Powell Signals Potential End of Quantitative Tightening, Uncertain Outlook on Interest Rates

October 14, 2025 — At the business economists’ meeting in Philadelphia, Federal Reserve Chair Jerome Powell spoke about how the bank nears the end of its plan to shrink its bond holdings. The Fed works to finish its move away from the large balance sheet built during the pandemic. Powell did not give a clear map for future interest rates. This leaves the market with some doubt.

Nearing the End of Balance Sheet Reduction

Powell said the Fed now holds over $6 trillion in securities. This number falls from nearly $9 trillion at the height of the pandemic. Since mid-2022 the bank has let securities mature and not reinvest the money. This step reduces the holdings and makes the money supply less loose.

"Our plan is to end the balance sheet runoff when reserves stay a bit above what we see as a safe level," Powell said. He meant that the bank thinks there is enough money in the system but not too much. He expects that level to come in the coming months.

This change goes against the bank’s earlier actions. Before, the Fed bought many Treasury and mortgage-backed securities to put more cash in the system and help the recovery. Now, with market conditions in change, the bank wants to keep enough cash for smooth payments while avoiding overheating the economy.

Implications for Financial Markets

Even if balance sheet issues sound tough, they affect market moves. Powell pointed out small signs that cash in the system is getting tighter. He warned that further cuts in the balance sheet might slow economic growth. Yet, he said that the bank will not go back to a balance sheet of around $4 trillion like before Covid.

Powell also talked about the interest paid on bank reserves. Some politicians, such as Senator Ted Cruz (R-Texas), have questioned this method. Powell sees it as important for keeping a close hold on short-term rates. He said, "If we stopped paying interest on reserves and other items, the Fed would lose control over rates." The bank faced brief losses when it raised rates quickly, but Powell expects its net income to soon show a rise.

Interest Rate Outlook: A Delicate Balancing Act

Powell repeated the main idea of the policy group, the FOMC. Leaders worry as signs of tightening in the labor market add to the challenge of keeping inflation in check while keeping people employed. Powell noted that though the jobless rate stayed low until August, the growth in payrolls is slower. This change is linked to fewer people working and new job seekers.

After a small rate drop in September, the market thinks there may be two more cuts this year. Powell was careful with his words. He said, "There is no free path in policy as we work with the challenge of meeting both our work and price goals."

Data Challenges and Economic Outlook

The government shutdown makes it hard for the Fed to get the latest data, like job reports and price measures. Powell said that the data they have shows the overall economic view stays steady since the last meeting. He also mentioned that rising costs for goods seem linked more to tariffs than to a deep rise in prices. He referred to upcoming data on consumer prices from the labor bureau.

Summary: What to Watch Next

  • Quantitative Tightening: The bank nears the end of shrinking its bond holdings, with reserves close to a safe level.
  • Interest Rates: There is no clear plan for rate moves; the bank works to balance price shifts and jobs.
  • Labor Market: Signs show slower worker growth and tighter conditions.
  • Economic Data: With ongoing data gaps, the summary of economic news needs care.
  • Interest on Reserves: Paying interest on reserves helps the bank steer short-term rates. No plan exists to stop these payments despite some political criticism.

Powell’s words make it clear that even as the Fed ends one part of its plan, its path depends on new data and ongoing challenges in price and work problems.

This article is based on remarks by Federal Reserve Chair Jerome Powell on October 14, 2025, at the business economists’ meeting, with extra information on how the Fed manages its monetary policy.

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