The Federal Reserve cut interest rates by 25 basis points at its December 9-10, 2025 meeting, lowering the federal funds rate target range to 3.50%-3.75%.
Key Details
This move aligned with market expectations, marking a continuation of prior cuts in September and October amid labor market softening and sticky inflation. Fed projections now anticipate stronger 2026 growth and one additional cut next year, though investors price in two.
Context
No announcements occurred on December 11, as the FOMC decision was released December 10; Chair Powell's press conference followed, emphasizing balanced risks to employment and inflation goals. Policymakers noted elevated uncertainty but diminished persistent inflation risks.
