Fed Cuts Rates by Quarter Point; Statement Mostly Unchanged

02:26 PM EST, 12/10/2025 (MT Newswires) -- The Federal Open Market Committee lowered the federal funds rate target by 25 basis points to a range of 3.50% to 3.75%, its statement Wednesday afternoon showed.

Three officials dissented with Governor Stephen Miran preferring a larger 50-basis point reduction, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change.

The updated Summary of Economic Projections still points to one cut in 2026, another in 2027, and none in 2028, unchanged from the prior SEP. For 2026, the median GDP forecast was revised higher, while overall and core inflation projections were trimmed.

The statement was little changed, with the main addition noting reserves.

The committee "judges that reserve balances have declined to ample levels and will initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves on an ongoing basis," according to the statement.

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

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