Federal Reserve Chair Jerome Powell addressed interest rates following the FOMC meeting on December 10, 2025, with decisions effective December 11. The committee lowered the target range for the federal funds rate by 1/4 percentage point to 3.5% to 3.75%.
Key Statements
Powell described the decision as a "close call," noting divisions among officials due to a softening labor market and somewhat elevated inflation. He highlighted gradual cooling in employment, with unemployment rising slightly and potential overstatements in job figures.
Future Outlook
The Fed will assess incoming data for further adjustments, committing to maximum employment and 2% inflation while signaling caution on additional cuts amid rising inflation risks. This marks the third consecutive rate cut this year.
