Monetary Policy Tightening Stancemonetary policy
0.75Weakened60% impact weight
A further quarter-point cut continued to relax the monetary-policy-tightening stance.
policyverifiedconfidence: medium
Federal Reserve trims rates to 3.50-3.75% in December 2025 amid slowing activity
On 10 December 2025 the Powell-led FOMC lowered the federal funds target range by a quarter point to 3.50-3.75%, continuing a measured easing path in response to moderating economic activity and elevated uncertainty about the outlook. The decision came against the backdrop of public pressure for faster cuts, and Powell maintained that the Committee was balancing still-elevated price risks against signs of a softening labour market.
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What happened
On 10 December 2025 the Powell-led FOMC lowered the federal funds target range by a quarter point to 3.50-3.75%, continuing a measured easing path in response to moderating economic activity and elevated uncertainty about the outlook. The decision came against the backdrop of public pressure for faster cuts, and Powell maintained that the Committee was balancing still-elevated price risks against signs of a softening labour market.
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