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December’s Jobs Data Reinforces Fed’s Cautious Approach to Future Cuts

For the central bank to lower interest rates again, officials will likely need to see more notable signs that unemployment is rising.

© Caroline Gutman for The New York Times

After the Federal Reserve made its December interest rate cut, Jerome H. Powell, the central bank’s chair, said it was “well positioned to wait to see how the economy evolves.”
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Fed’s Independence Faces Critical Tests as Trump Seeks to Remake Institution

The central bank faces two major hurdles early on in 2026 that will determine the extent to which it operates free of political meddling.

© Doug Mills/The New York Times

President Trump has said anybody who disagrees with him will never get the top job at the Federal Reserve, prompting concern that his nominee will prioritize pleasing him over all else.
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