FOMC Cuts Rates by 25 Basis Points, Ends Quantitative Tightening

02:20 PM EDT, 10/29/2025 (MT Newswires) -- The Federal Open Market Committee lowered the federal funds rate target by 25 basis points at its meeting, setting the new range at 3.75% to 4%, according to its statement released Wednesday afternoon.

There were two dissents to the decision: Federal Reserve Governor Stephen Miran again advocated for a 50-basis point rate cut, while Kansas City Fed President Jeffrey Schmid preferred no rate reduction.

The FOMC acknowledged the lack of economic data due to the federal government shutdown, but said available indicators show that economic activity is expanding at a moderate pace, job gains have slowed, unemployment has edged up, and inflation remains elevated. There was no update to the Summary of Economic Projections at this meeting.

The committee also announced it will end the reduction of its securities holdings, also known as quantitative tightening, on Dec. 1.

Fed Chairman Jerome Powell's press conference begins at 2:30 p.m. ET.

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