On December 10, the Federal Reserve cut interest rates to 3.50%–3.75%. This means the Federal reserve cut interest rates for the third time this year to 0.25 percentage points. The Fed explained that the economy is slowing and job growth is getting weaker by each year. The Fed said it will only make more changes after checking new data.
Meeting Takeaways and Policy Direction
During the widely followed event of like fomc meeting today, the committee signaled that further cuts are unlikely soon. Projections show only one expected reduction in 2026, reflecting internal divisions and higher uncertainty. Policymakers also noted the need to monitor inflation, which has slowed but remains above target.
Market and Global Reaction
After the Fed cut rate, the stock market went up and the dollar got weaker. Traders on forex factory changed their plans for the next year. Most investors now think the Fed will keep rates steady unless the economy slows more. This final 2025 rate cut may play a big role in what happens next year.
