Federal Reserve Cuts Rates for a Third Time in 2025, Lowering the Target Range to 3.50% to 3.75%
The Federal Reserve concluded a two-day policy meeting in Washington on December 10, 2025, with the Federal Open Market Committee voting 9 to 3 to lower the target range for the federal funds rate by a quarter of a percentage point, to 3.50 to 3.75 percent. It was the Fed's third rate cut of 2025, following cuts on September 17 and October 29.
In its statement, the Committee said available indicators suggested economic activity had been expanding at a moderate pace, job gains had slowed this year and the unemployment rate had edged up through September, while inflation had moved up since earlier in the year and remained somewhat elevated. The Committee judged that downside risks to employment had risen in recent months.
In light of the shift in the balance of risks, the Committee said it would carefully assess incoming data, the evolving outlook and the balance of risks in considering the extent and timing of additional adjustments to the target range. The Committee also judged that reserve balances had declined to ample levels and said it would initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves on an ongoing basis.
Of the three dissenters, Governor Stephen Miran preferred a half-point cut, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change. Voting for the action were Chair Jerome Powell, Vice Chair John Williams and seven other members.
Related: Fed Cuts Rates by a Quarter Point to 3.75% to 4% and Will End Balance Sheet Runoff on December 1
Related: Federal Reserve Cuts Rates by a Quarter Point to 4% to 4.25%, Its First Reduction of 2025
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：位于美国华盛顿的美联储总部马里纳·埃克尔斯大楼（Eccles Building）北侧立面。AgnosticPreachersKid 摄，CC BY-SA 3.0，经 Wikimedia Commons。 / Photo: The north side of the Marriner S. Eccles Building, headquarters of the Federal Reserve in Washington, D.C. By AgnosticPreachersKid, CC BY-SA 3.0, via Wikimedia Commons.
- 2025-09-17Federal Reserve Cuts Rates by a Quarter Point to 4% to 4.25%, Its First Reduction of 2025
- 2025-12-10Federal Reserve Cuts Rates for a Third Time in 2025, Lowering the Target Range to 3.50% to 3.75%This story
