US EditionDivided Fed approves third rate cut this year, sees slower pace ahead
The Federal Open Market Committee reduced the benchmark rate for the third time in 2025 amid rising employment risks, with three dissenting members signaling internal divisions.
- On Wednesday, the Federal Reserve reduced its influential interest rate by a quarter point, marking the third cut this year and lowering the federal funds rate to about 3.6%.
- Alternative data show a softer labour market as ADP monthly private jobs report revealed small businesses shed 120,000 jobs in November, while inflation remains somewhat elevated this year.
- The committee's dissent — the largest since September 2019 — included three Fed officials: Stephen Miran voted for a half-point cut, while Jeff Schmid and Austan Goolsbee preferred no change.
- In projections released with the statement, Fed officials said available indicators show moderate economic activity, growth picking up next year, one more cut next year, and inflation expectations decline next year.
- Investors had largely priced in the cut but Fed Chair Jerome Powell recently warned there is no risk-free path, while affordability across the U.S. and a data blackout fuel caution.
296 Articles
296 Articles
Federal Reserve Signals Cautious Optimism with Third Rate Cut
The U.S. Federal Reserve's third consecutive rate cut signals a dovish stance amid persistent inflation and robust economic activity. DBS Group Research notes a forecasted 'Goldilocks' economic scenario by 2026, with gradual rate cuts and strategic T-bill purchases conveying cautious confidence without immediate overheating or recession risks.
Fed Cuts Rates at Final Meeting of 2025–What This Means for Your Money
The Federal Reserve cut interest rates at the final meeting of the year, and the third straight rate reduction will impact your money. Central bankers voted 9-3 on Dec. 10 to lower the benchmark federal funds rate—a key policy rate that influences business, household, and government borrowing costs—by a quarter point. The widely expected rate decision brought the new target range to 3.5 percent to 3.75 percent. A January rate decision is up in t…
The Fed lowers its rates for the third time, despite dissenting voices. Between persistent inflation, rising unemployment and limited data after the "shutdown", the US institution keeps its monetary policy blurred, reinvigorating speculation on the markets.
It was expected, now the US Federal Reserve has announced the third rate cut of the year. What this means for Germans and Europeans.
US Federal Reserve cuts interest rates but warns inflation remains high
The US Federal Reserve cut interest rates yesterday in another divided vote, but signalled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that "remains somewhat elevated".
Coverage Details
Bias Distribution
- 45% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
