Full Text of the Fed Decision: 25 Basis Point Rate Cut, $40 Billion Treasury Bill Purchases Within 30 Days
The Federal Reserve lowered the target range for the federal funds rate by 25 basis points to 3.50%-3.75% on December 10, 2025, marking the third consecutive rate cut. The decision was approved by a 9-3 vote. The policy statement removed the description of unemployment as "low," and the latest dot plot maintained the projection of an additional 25 basis point rate cut in 2026.
Additionally, the Fed will purchase $40 billion in Treasury bills over 30 days starting December 12 to maintain ample reserve levels. The policy stance reflects concerns over moderating economic activity, a rise in unemployment, and inflation that remains elevated. The committee emphasized its commitment to achieving maximum employment and a 2% inflation target, noting increased downside risks to employment.
Voting against the decision were Stephen Miran, who preferred a 50 basis point cut, and Austan Goolsbee and Jeffrey Schmid, who favored no change. The Board also unanimously approved a reduction in the primary credit rate to 3.75%.
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