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# Federal Reserve Cuts Federal Funds Rate by 25 Basis Points to 3.50–3.75% in December 2025
- URL: https://www.theglobalbanker.com/federal-reserve-cuts-federal-funds-rate-25-basis-points-3-50-3-75-december-2025/
- Published: 2025-12-10T19:00:00.000Z
- Updated: 2026-10-24T22:44:51.000Z
- Description: The FOMC voted 9-3 to cut its policy rate to 3.50–3.75%, the lowest point in the current cycle, while signalling a cautious approach heading into 2026.
- Author: TGB Editorial Team
- Tags: Central Banks, Americas, #archive

The Federal Open Market Committee voted on 10 December 2025 to lower the federal funds rate by 25 basis points, bringing the target range to 3.50%–3.75%. The decision, announced in a press release on the Federal Reserve's website, marks the lowest level the benchmark rate has reached in the current easing cycle and extends the sequence of reductions that began earlier in the year.

The vote was carried by a majority of nine to three. Governor Miran dissented in favour of a larger reduction, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid both preferred to hold the rate steady at its previous level. 

The Federal Reserve has described its approach as data-dependent throughout the current cycle.

#### OUTLOOK

The Fed signalled a cautious approach heading into 2026\. The Committee's statement emphasised ongoing monitoring of economic data before any commitment to additional policy adjustments.

The next scheduled FOMC policy decision will take place in early 2026\.