BOSTON, MA, December 10, 2025 — The Federal Open Market Committee (FOMC) met today to assess the state of the US economy and monetary policy. In its last meeting of 2025, the FOMC reduced the Federal Funds Target Rate by 25 bps to a target rate of 3.50-3.75%, matching market expectations. There were once again dissenting opinions, reflecting disagreement about the economic outlook. At the press conference, Chair Powell calmly discussed the framework on how the committee reached its decision today and noted that everyone on the committee agrees the mandate is in tension (inflation is too high and there’s further risk to labor market softness). Today’s decision moves the policy rate into the neutral range and leaves flexibility for the January meeting to respond to the large amount of “catch up” data expected over the coming weeks. 

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