Washington Fed Cuts Rates, Signals Pause Ahead Now
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Washington. The Federal Reserve cut its benchmark interest rate by 25 basis points Wednesday, lowering the federal funds target to 3.50–3.75 percent after a two-day FOMC meeting. Chair Jerome Powell said officials will wait to see and flagged a higher bar for future reductions while projecting one additional cut next year. Fed officials cited a cooling labor market and persistent inflation as reasons for caution. Three policymakers dissented, the most since 2019, with votes split over the pace and size of cuts. Markets and borrowers will monitor incoming data to assess policy direction. Based on 11 articles reviewed and supporting research.
More context
Timeline
- 1. September 2025: Fed begins cutting rates, marking first easing moves of the cycle.
- 2. November 2025: ADP reports a 32,000 private-sector job loss, indicating cooling payrolls.
- 3. Dec 10, 2025: FOMC holds a two-day meeting and votes to cut rates by 25bps.
- 4. Dec 10, 2025: Fed releases projections showing one additional cut penciled in for next year.
- 5. Dec 10, 2025: Three FOMC members dissent, the largest number of dissents since 2019.
Sources
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