Fed Cuts Rate to 3-1/2–3-3/4 Percent
The FOMC lowered the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent. The Committee said it judges that downside risks to employment rose in recent months. 1
The statement says economic activity has been expanding at a moderate pace, job gains have slowed this year, and inflation has moved up since earlier in the year and remains somewhat elevated. 1
Chair Powell said the Committee also decided to initiate purchases of shorter-term Treasury securities solely to maintain an ample supply of reserves over time, supporting effective control of the policy rate. 1
Powell said labor market conditions appear to be gradually cooling and inflation remains somewhat elevated. He noted that some federal government data had yet to be released. 1
The minutes say market participants and the Desk survey generally expected a 25 basis point cut at the December meeting. The modal outlook implied two additional cuts next year. 1
The December Summary of Economic Projections shows median real GDP growth of 1.7 in 2025 and 2.3 in 2026. Unemployment is projected at 4.5 in 2025 and 4.4 in 2026. 1
Cited releases · 4
FedPress conferenceDec 10, 2025EN
FOMC Press Conference December 10, 2025
FedMinutesDec 30, 2025EN
Minutes of the Federal Open Market Committee, December 9–10, 2025
FedStatementDec 10, 2025EN
Federal Reserve issues FOMC statement
FedReportDec 10, 2025EN