US Fed Meeting 2025 LIVE: FOMC Cuts Key Interest Rates to 3.50%-3.75% Amid Elevated Inflation

On Wednesday, December 10, 2025, the US Federal Reserve's Federal Open Market Committee (FOMC), under the leadership of Jerome Powell, disclosed a decrease of 25 basis points in its key benchmark interest rates. Consequently, the new target range is set at 3.50% to 3.75%, which is the third consecutive decrease in rates since September 2025.

It is a gradual move considering that inflation has not yet returned to the normal level and the US labor market might have already reached its peak condition. The Committee said in its official announcement, "in pursuit of its objectives and due to the shift in the risk distribution, the Committee made the decision to cut the federal funds rate target range of 3-1/2 to 3-3/4 percent by 1/4 percentage point."

The Situation and Context

Up until then, the Fed got anucontinuously held rates since December 2024. The cut, made in September of 2025, was a start of the current easing cycle, and in October there was yet another reduction. The central bank is constantly trying to achieve its dual mandate of price stability and maximum employment, thus being very attentive to economic data and using it as a guide for future interest rates.

According to data from the US Bureau of Labor Statistics, the unemployment rate in September 2025 was 4.4%. 119,000 jobs were added to the economy during that period underlying the fact that a federal government shutdown was in place at that time.

The Fed's Previous Moves

At the meeting held in October 2025, the Fed lowered rates by 25 bps to 3.75%-4.00% and justified it with the fact that inflation was high, which was partly caused by the rising prices of goods and tariffs. Powell then made it clear that the market could not presume future cuts, and thus the market would have to stay alert to the economic situation as well as the policy signals.

The Impact on Market and Sectors' Reactions

The rate cut affects a whole range of financial markets and commodities and is likely to have the following impact:

Oil Markets: The analyst community is of the opinion that the lower borrowing costs will bring about the necessary economic stimulus and in turn will lead to an increase in oil demand. The report for the week ending December 5 indicates that US crude stocks dropped by 1.8 million barrels, which is slightly less than the initial expectation. The price for Brent crude futures was $62.16 a barrel, whereas WTI was trading at approximately $58.45.

Cryptocurrency: Although the major stock exchanges temporarily benefited from the Fed's announcement, the prices of leading cryptocurrencies, such as Bitcoin and Ether, went down, as the market reacted to the Fed's third consecutive cut and Powell's cautious direction. Bitcoin price fell from $92,300 to $89,900, reflecting a 2.8% slip and Ether saw a close to 3.6% drop, going down to $3,188.

The attention of the market participants continues to be on the speech of Chairman Powell, and the Fed is predicted to give the people an idea of its economic forecast and the potential path of interest rates in 2026.