The Federal Reserve heads into 2026 swirling in a messy mix of economic pressures and political uncertainties.

The end of Jerome Powell’s term as Fed chair will give President Trump his biggest opportunity yet to reshape the central bank.

Federal Reserve officials have voted to cut interest rates by 25 basis points at their December FOMC meeting on Wednesday, lowering rates to a range of 3.5 to 3.75%. The announcement was followed by a press conference with Fed Chair Jerome Powell,

Taylor was denied bond for the charges, which included two counts of felony murder, aggravated battery, aggravated assault, concealing the death of another, fleeing or attempting to elude, reckless driving, speeding, theft by receiving stolen property and failure to obey traffic-control devices.

U.S. Federal Reserve Chair Jerome Powell walks as he attends to hold a press conference following a two-day meeting of the Federal Open Market Committee (FOMC), at the U.S. Federal Reserve in Washington, D.C., U.S., December 10, 2025. REUTERS/Kevin Lamarque

The Fed chair said there's no risk-free path to reducing inflation while supporting a creaky labor market, but suggested that higher productivity could be a "get-out-of-jail-free" card.

The Fed chair said underlying job growth could already be below zero, with official payroll figures overstating reality by tens of thousands each month.

Powell will be otherwise occupied as the Heat will play the Nets in Brooklyn that day. But his foundation is left in the hands of his mother, Sharon Powell, sisters Margaret Powell-Smart and Joniece Benjamin, and a handful of lifelong friends from his hometown.

The Fed chair’s ability to corral differing minds is a credit to his leadership, Derek Tang writes in a guest commentary.

Federal Reserve chair Jerome Powell has expressed concern over the so-called "K-shaped" economy the U.S. is experiencing.