I'm Lydia Who, and this is the Fox Business Rundown.

Monday, December 8th, 2025.

A highly anticipated Fed meeting this week.

Will investors get their Christmas wish?

In 1980, when they thought they'd slayed the inflation monster,

they cut rates prematurely, and we know what happened after that.

And that then forced, inflation got out of control, that then forced the Fed to jam reach to

a level that brought the country into a two-year ugly, disruptive, painful recession.

Something we certainly don't want to see happen, but I fear could end up becoming

the story if they get too aggressive.

You could call this an early Christmas gift.

A delayed September PCE report released last week on core inflation.

It is a price gauge closely watched by the Federal Reserve, and it came in cooler than expected.

It's encouraging for the Trump administration, which has been pushing the Federal Reserve to lower interest rates.

While there is attention on this week's rate decision, eyes are looking ahead to next year.

You might say the current Fed chair Jerome Powell is on

Trump's naughty list and the nominee to replace him will likely be named in early 2026.

What will that mean for the direction of monetary policy to discuss this and how investors

should prepare for this Wednesday's Fed decision? And if they can expect a Santa Claus rally in their stockings, let's bring in Kenny Polkari.

I was always in the camp that they should not have been cutting rates as aggressively as they did.

Kenny Polkari is the chief market strategist at Slate Stone wealth. I think the market is already pricing into 25 base point

cut this week. I think that's okay at this point. But at this point, I think they have to stop

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