Wed, 10 Dec 2025

Wed, 10 Dec 2025 Fed lowers interest rates but future cuts uncertain

The US central bank lowered interest rates for the third time this year, but the outlook for further cuts remains murky.

* Interest rates lowered by 0.25 percentage points to a range of 3.50-3.75%, lowest level in three years
* Fed officials disagree on future rate cuts, with some calling for more reductions and others warning of rising inflation and unemployment risks
* Three Fed officials broke ranks and dissented from the decision to lower rates, including Stephen Miran who voted for a larger 0.5 percentage point cut
* President Trump said the Fed's cut could have been "at least doubled" and urged Powell to keep lowering rates
* The Fed is considering one additional rate cut next year, although new data could change this
* Incoming data on labor market and inflation may shift policymakers' outlook and potentially lead to further easing next year
* President Trump's search for a replacement for Fed chair Jerome Powell is adding uncertainty about the path forward for Fed policy
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