Fed's Latest Rate Decision (Dec 2025)
The US Federal Reserve just lowered its key interest rate by 0.25 percent, bringing it to 3.5 to 3.75 percent. This is the third cut in a row, making borrowing cheaper to support economic activity.
Quick Economy Scoop:
• Growth is steady but not accelerating.
• The job market is cooling, with slower hiring and unemployment rising slightly.
• Inflation remains a bit elevated but continues to trend downward.
The Fed was divided. Most members supported the small cut. Some wanted a larger cut to support the labor market more aggressively, while others argued to wait because inflation is not fully tamed. Policymakers expect only one additional small cut next year and see the economic outlook improving slightly compared to earlier forecasts.
Bottom Line:
The economy is stable, and the Fed is moving carefully. They are watching labor trends and inflation closely before making further decisions. Borrowing may get a little cheaper, but returns on savings could decline.
