Insights

Weekly Market Commentary – 12th December

15 December 2025

This week’s interest rate cut by the Federal Reserve came as no surprise. Jerome Powell’s Fed has resisted political pressure for most of the year but, with inflation stabilizing and a string of weak jobs data and falling consumer confidence, calls for rate cuts grew harder to ignore. Communication from the Fed following this week’s decision shows its priority has shifted from bringing down inflation to strengthening the economy, at least in the short term, causing the dollar to weaken slightly. Still, Powell cautioned against expecting aggressive cuts in 2026.