US EditionDivided Fed approves third rate cut this year, sees slower pace ahead
The Federal Reserve cut rates for the third time in 2025 amid divided views and projects only one more cut in 2026 to balance inflation and labor market 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.
319 Articles
319 Articles
Divided Fed Makes Money Decision Ahead Of Christmas
By Tyler O'Neil, The Daily Signal | December 10, 2025 Federal Reserve Chairman Jerome Powell announced the third interest rate cut of the year in a news conference Wednesday. “Today, the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point,” Powell said.The rate cut brings the federal funds rate between 3.5% and 3.75%, following similar-sized rate cuts in September and October.“My colleagues and I…
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.
Federal Reserve Cuts Interest Rates for a Third Time in 2025
The Federal Reserve on Wednesday cut interest rates by a quarter point with Fed Chair Jerome Powell suggesting the economy is improving, but acknowledging more challenges ahead. The third cut of the 2025 sent stocks rallying on Wall Street as concerns grow among consumers over the state of the economy. NBC’s Christine Romans reports for TODAY.
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…
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