US Fed Meeting 2025 LIVE: The US Federal Reserve’s FOMC on Wednesday, 10 December 2025, announced a 25 basis-point cut, lowering the key interest rate to 3.50%–3.75% amid persistently high inflation in the US economy. With the policy decision now out, all eyes are on Fed Chair Jerome Powell’s upcoming address, where markets expect crucial guidance on the central bank’s outlook and the future trajectory of rate cuts.
The Jerome Powell-led Federal Open Market Committee (FOMC) announced a 25 basis-point cut to the benchmark federal funds rate on Wednesday, 10 December 2025, reducing the target range to 3.50%–3.75%. The latest cut comes as the central bank navigates stubbornly high inflation and signs of a softening US labour market.
In its official statement, the FOMC noted that recent economic trends have shifted the “balance of risks,” prompting the committee to ease rates for the third time in a row.
“In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent,” the statement said.
🔻 Third Consecutive Rate Cut Since September 2025
With the December move, the Federal Reserve has now delivered three straight rate cuts, beginning with the first reduction in September 2025—its first in nearly a year after keeping rates unchanged since December 2024.
The central bank is attempting to balance its dual mandate:
- Bringing inflation closer to target, and
- Supporting a labour market that is beginning to lose momentum.
Despite the December cut, policymakers reiterated that future decisions will depend on evolving economic data, particularly trends in job creation, wage growth, and goods inflation.
🔻 Labour Market Shows Signs of Cooling
Recent data from the US Bureau of Labor Statistics indicated that unemployment climbed to 4.4% in September 2025, even as the economy added 119,000 jobs during the month—an outcome influenced partly by the federal government shutdown.
These mixed signals have complicated the Fed’s policy path, strengthening expectations that officials may proceed cautiously with any additional easing in early 2026.
🔻 What Happened in the October Policy Meeting?
On 29 October 2025, the Fed also cut rates by 25 basis points, moving the target range to 3.75%–4.00%. That decision was driven by persistent inflation and disruptions caused by the government shutdown.
Chair Jerome Powell had pointed to an uptick in goods prices, attributing the inflationary rise to tariffs imposed by President Donald Trump on imported goods.
Powell had also warned in October that a December rate cut was “not a foregone conclusion,” but markets nevertheless priced in a strong probability of easing ahead of today’s announcement.
“A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it,” Powell said at the time.
🔻 What to Expect Next?
With the latest cut now confirmed, global markets are closely watching Powell’s commentary for clues about:
- The rate cut trajectory in early 2026
- Inflation expectations
- The Fed’s assessment of labour-market risks
- The timing of any potential policy pivot
The central bank is expected to release updated forecasts later today, followed by Powell’s press conference, which will set the tone for market sentiment going into the new year.
