On December 10, 2025, the Federal Reserve released a statement from the Federal Open Market Committee (FOMC). The statement revealed that the economy is growing at a moderate pace, with job growth slowing and the unemployment rate rising. Inflation has also been on the rise, though it remains above the central bank's target of 2%.
The FOMC aims to achieve maximum employment and price stability, and the committee decided to lower the target range for the federal funds rate by a quarter percentage point to 3.5-3.75%. This decision was made in light of the uncertainty surrounding the economic outlook and the increased risk of downside for employment. The committee is committed to supporting maximum employment and returning inflation to its 2% target.
The committee will continue to monitor the economic outlook and adjust monetary policy as needed. They will carefully assess incoming data and the evolving outlook, and the balance of risks. The committee's assessments will take into account a wide range of information, including labor market conditions, inflation pressures, and financial and international developments.
The voting members of the FOMC who supported the monetary policy action were Jerome H. Powell, John C. Williams, Michael S. Barr, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Philip N. Jefferson, Alberto G. Musalem, and Christopher J. Waller. Stephen I. Miran, Austan D. Goolsbee, and Jeffrey R. Schmid voted against the action, with Miran preferring a half-percentage-point reduction and Goolsbee and Schmid preferring no change.
For media inquiries, please contact the Federal Reserve at [email protected] or call 202-452-2955. The implementation note for this statement can be found on the Federal Reserve website.
