A cutting tool (500) has a longitudinally extending shaft portion (588) with a chucking part (509) and a cutting head (506). A pressed powder cutting insert (518) with a cutting edge (520) is on the cutting head (506). The cutting edge (520) includes at least one cutting portion. A rake surface (524) is formed adjacent to at least one of the cutting portions (520) with the rake face (524) being at a rake angle from about 0.degree. to 10.degree.. A clearance face (526) is formed adjacent to the at least one cutting portion opposite the rake face (524). The clearance face (526) is at a clearance angle from about 10.degree. to 50.degree.. An edge radius (540) between the rake face (524) and the clearance face (526) is at a radius of from about 0.0015 to about 0.004 inch. The edge radius 540 is formed during pressing of the powder to form the insert, thus, enabling the insert to be directly braised into the cutting head (506).