# Federal Reserve trims rates to 3.50-3.75% in December 2025 amid slowing activity

Date: 2025

On 10 December 2025 the [Powell](/people/jerome-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.

## Drivers

- Monetary Policy Tightening Stance: https://factrail.ai/drivers/econ-monetary-policy-tightening
- Cost-of-Living Pressure: https://factrail.ai/drivers/econ-cost-of-living-pressure

## Sources

_Sources are listed on the canonical page._

## Methodology

https://factrail.ai/methodology

Canonical: https://factrail.ai/facts/econ-fact-powell-2025-december-cut