Fed Cuts Rate to 3-3/4 to 4 Percent
The FOMC lowered the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent. It said downside risks to employment rose in recent months. 1
The Committee decided to conclude the reduction of its aggregate securities holdings on December 1. 12
The statement says job gains have slowed this year and inflation has moved up since earlier in the year and remains somewhat elevated. 1
Chair Powell said some federal data were delayed by the shutdown, but available data suggest the outlook for employment and inflation has not changed much since September. He said GDP rose at a 1.6 percent pace in the first half of the year, down from 2.4 percent last year. 1
The minutes say investors expected a 25 basis point cut at the October meeting and another at the December meeting. Some uncertainty around December was evident in the Desk survey and in market prices. 1
Cited releases · 3
FedPress conferenceOct 29, 2025EN
FOMC Press Conference October 29, 2025
FedMinutesNov 19, 2025EN
Minutes of the Federal Open Market Committee, October 28–29, 2025
AI The minutes of the October 28–29, 2025 FOMC meeting open with the manager's report, which says markets expected 25 basis point cuts in the target range at the October and December meetings, and that repo rates and the effective federal funds rate had risen relative to the interest rate on reserve balances, indicating reserves could be approaching ample. The manager recommended that the Committee consider stopping the runoff of the System Open Market Account portfolio soon.
FedStatementOct 29, 2025EN