Breaking News: US Federal Reserve cuts rates by 25 bps, bringing target range to 3.50 - 3.75%

[Ben Graham]

• US Fed Federal Funds Rate (December 2025): 3.50-3.75% vs 3.50-3.75% expected, meets consensus

In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

Federal Reserve FOMC Statement, December 10th 2025

Breaking: The Federal Reserve has voted to cut rates by 25 basis points in its December 2025 decision, bringing the policy rate target range to 3.50% - 4.75%, meeting market expectations.

Key takeaway: Representing the third consecutive cut made by the Federal Reserve, a decision to cut in today’s vote shows a shifting of priorities away from controlling inflation, and instead focuses on improving an otherwise softening US labour market. US interest rates are now at their lowest level since 2022. Three policy makers dissented to the decision, with two voting to maintain rates, and one other voting for a 50 basis point cut.

This is a developing story. Refresh for updates

Read more coverage from today’s session: US Stock Index Levels before the FOMC: S&P 500, Nasdaq and Dow Jones

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