MPC Morning Call 11th December 2025 – Fed delivers 3rd rate cut, sets higher bar for further moves
Stocks rallied overnight on a rate cut the market had priced in already, despite Jerome Powel warning the bar for further cuts would be much higher
The Federal Reserve cut interest rates by 25 basis points to a range of 3.5%–3.75%, marking its third reduction this year. Fed Chair Jerome Powell said the rate is now within a “plausible” neutral range and that future policy moves will depend on incoming economic data. However, divisions within the central bank have deepened, with three officials dissenting—two preferring a pause and one calling for a deeper 50-basis-point cut. At the same time, President Donald Trump is preparing for the final round of interviews to select the next Fed chair, according to the Wall Street Journal. Among the candidates are former Fed Governor Kevin Warsh and White House economic adviser Kevin Hassett, who is believed to be the frontrunner to replace Powell when his term ends next year. The outcome of these interviews could have major implications for the Fed’s policy direction and its relationship with the White House. Beyond monetary policy, market attention this week is also on corporate earnings. Oracle and Adobe are set to report after the market closes, with investors watching for insights into the AI and cloud sectors. Oracle has gained momentum through its partnership with OpenAI, while Adobe has struggled, with shares down over 21% this year. Elsewhere, AeroVironment and Cracker Barrel both fell after lowering forecasts, whereas Chewy posted stronger-than-expected results, showing ongoing profitability and revenue growth. Corporate News Oracle -6.8% - fell in afterhours trading after adjusted per-share income of $2.26 on revenue of $16.06 billion, compared to Wall Street expectations for $1.64 on revenue of $16.19 billion. Oracle Cloud Infrastructure’s revenue grew 68% to $4.08B. the fall was due to missed revenue expectations amid weakness in its software business. Adobe +0.53% - reported higher fourth quarter revenue and profit on Thursday, which also beat estimates, lifted by double digit growth in its subscription businesses and stronger demand for its AI driven tools. ASX Overnight: SPI 8658 (+0.88%) The Day Ahead: look for materials sector and tech to have a good day. Silver and Gold miners will continue their run
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