SUMMARY OF FED DECISIONS IN DECEMBER 2025
1️⃣ Interest Rates
The Fed decided to lower interest rates by 0.25% – the third consecutive reduction in 2025, as expected by the market.
👉 Three members disagreed: Goolsbee and Schmid opposed the rate cut. Miran wanted a 0.5% cut.
2️⃣ Meeting Minutes
- The Fed will consider the “level and timing” of further adjustments.
- The Fed will begin purchasing US Treasury Bills on December 12th. Over 30 days, the Fed will purchase $40 billion worth of Treasury Bills.
3️⃣ Economic Forecast 2026
- GDP growth INCREASES from 1.8% to 2.3%.
- Unemployment rate REMAINS UNCHANGED at 4.4%.
- PCE inflation DECREASES from 2.6% to 2.4%.
- Core PCE inflation DECREASES from 2.6% to 2.5%.
👉 GDP is revised upward, PCE and core PCE are revised downward, unemployment rate remains unchanged, and is revised downward for 2027.
1️⃣ Interest Rates
The Fed decided to lower interest rates by 0.25% – the third consecutive reduction in 2025, as expected by the market.
👉 Three members disagreed: Goolsbee and Schmid opposed the rate cut. Miran wanted a 0.5% cut.
2️⃣ Meeting Minutes
- The Fed will consider the “level and timing” of further adjustments.
- The Fed will begin purchasing US Treasury Bills on December 12th. Over 30 days, the Fed will purchase $40 billion worth of Treasury Bills.
3️⃣ Economic Forecast 2026
- GDP growth INCREASES from 1.8% to 2.3%.
- Unemployment rate REMAINS UNCHANGED at 4.4%.
- PCE inflation DECREASES from 2.6% to 2.4%.
- Core PCE inflation DECREASES from 2.6% to 2.5%.
👉 GDP is revised upward, PCE and core PCE are revised downward, unemployment rate remains unchanged, and is revised downward for 2027.