Federal Reserve Holds US Benchmark Rate at 4.25–4.50% in Unanimous June 2025 Decision

The Federal Open Market Committee voted unanimously to keep the federal funds target rate unchanged at a range of 4.25–4.50% at its June 2025 meeting, maintaining the range it has held since December 2024. The vote was 12-0, according to the press release published on the Federal Reserve's website.

The FOMC said uncertainty about the economic outlook had diminished but remained elevated.

BALANCE SHEET POLICY UNCHANGED

Alongside the rate decision, the FOMC made no changes to its balance sheet policy, leaving the pace and parameters of the ongoing reduction in its securities holdings unaltered.

The Federal Reserve's balance sheet has been shrinking gradually since the committee began allowing maturing securities to run off without full reinvestment, a process initiated in 2022 as part of the broader tightening cycle that brought the policy rate from near zero to its current level.

ANNOUNCEMENT

The decision was announced through the FOMC's press release published on the Federal Reserve's website on 18 June 2025. For borrowers and lenders across the United States, the June decision means that the reference rate for a broad range of consumer and corporate instruments remains at the level reached after the Fed's 100 basis points of cuts between September and December 2024.