Fed Cuts Rates by a Quarter Point to 3.75% to 4% and Will End Balance Sheet Runoff on December 1
On October 29, 2025, in Washington, the Federal Reserve's Federal Open Market Committee announced it was lowering the target range for the federal funds rate by a quarter of a percentage point, to 3.75 to 4 percent. It was the committee's second rate cut of 2025.
In its statement, the committee said available indicators suggested economic activity had been expanding at a moderate pace, that job gains had slowed during the year, and that the unemployment rate had edged up but remained low through August, while inflation had moved up since earlier in the year and remained somewhat elevated. Uncertainty about the economic outlook remained elevated, the committee said, and it judged that downside risks to employment had risen in recent months, a shift in the balance of risks that it cited in support of the cut.
The committee also decided to conclude the reduction of its aggregate securities holdings on December 1, ending its balance sheet runoff. It said it would carefully assess incoming data, the evolving outlook and the balance of risks in considering additional adjustments to the target range, and reaffirmed that it is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
The decision passed by a vote of 10 to 2. Governor Stephen I. Miran voted against the action, preferring a cut of half a percentage point, and Jeffrey R. Schmid, president of the Federal Reserve Bank of Kansas City, also voted against it, preferring no change. Under the accompanying implementation note, effective October 30, the interest rate paid on reserve balances was lowered to 3.90 percent and the primary credit rate to 4.0 percent.
(Source: Federal Reserve)
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美联储总部 Eccles 大楼。公共领域，经 Wikimedia Commons。 / Photo: The Marriner S. Eccles Federal Reserve Board Building in Washington. Public domain, via Wikimedia Commons.
