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Divided Fed approves third rate cut this year, sees slower pace ahead

The Fed cut rates by 0.25 percentage points to 3.5%-3.75%, the third cut this year, with three dissenters reflecting ongoing debate over inflation and employment risks.

  • 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.
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Impulsobaires broke the news in on Wednesday, December 10, 2025.
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