The Federal Reserve on Wednesday cut interest rates by a quarter point for the second time in a row on labor market concerns – but Chair Jerome Powell said another cut in December is “far from” certain.

Officials lowered rates to a new range of 3.75% to 4% as they remain more concerned about a dramatic drop in job growth than higher inflation. It’s the first time since 2022 that rates set by the Fed have dipped below 4%.

“There is no risk-free path for policy,” Powell said, noting there is “tension” between the Fed’s goals for maximum employment and 2% inflation.

He added there are “strongly differing views about how to proceed in December” – and another cut is not at all guaranteed. The remarks sent the Dow plunging more than 200 points.

Policymakers were split over Wednesday’s decision, with two officials voting against it.

Stephen Miran – the newest Fed governor and President Trump’s former economic adviser – voted no and pushed for a half-point reduction, instead. He has argued that any inflation impacts from Trump’s tariffs would be short-lived, saying rates should be cut aggressively to stimulate growth in the labor market.

Jeffrey Schmid, president of the Kansas City Federal Reserve, also opposed the decision – though he pushed for rates to remain unchanged, taking a more cautious approach over inflation fears.

In September, officials predicted rate cuts in both October and December. But Powell signaled that the government shutdown, which has halted economic data, could thwart the plan.

“What do you do if you are driving in the fog? You slow down,” he said.

Trump has been railing against the Fed chair, whose terms expires in 2026, for taking too long to ease policy.

The president invoked his nickname for the chairman – “Too Late Powell” – on Wednesday during a summit in South Korea, prompting laughter from an audience of business leaders.

Central bankers typically base their policy decisions on economic reports, like the Consumer Price Index, which ticked up in September to 3% – a slightly lower-than-expected figure that paved the way for the latest rate cut.

But agencies including the Bureau of Labor Statistics have stopped collecting and analyzing data during the shutdown. While some staffers returned to publish the CPI report last week, White House press secretary Karoline Leavitt recently warned that the shutdown would “likely result in no October inflation report.”

Despite the lack of government data, privately collected info has shown that not much has changed in the overall economic picture since last month, Powell said.

“Mortgage rates are more tied to the 10-year [Treasury yield] versus the Fed Funds Rate,” said Stephanie Link of Hightower Advisors. “That being said, a lower Fed Funds rate should be viewed positive and as a potential stimulus for the economy.”

Also on Wednesday, the Fed announced it would stop shrinking the size of its $6.6 trillion balance sheet from Dec. 1.

Fed officials were previously disjointed about how quickly to cut rates.

Miran was the sole policymaker to vote against September’s quarter-point cut. He advocated for a half-point cut then, too.

In July, Fed Governors Michelle Bowman and Christopher Waller opposed the decision to keep rates unchanged. At the time, they pushed for a quarter-point cut to support the labor market.