A divided US Federal Reserve has cut the interest rate by 25 basis points to a range between 3.50% and 3.75%, but the path for ahead for future rate cut is uncertain.
A split within the central bank deepened with two officials voting to keep rates unchanged, while one policymaker sought a bigger reduction.
The US Fed flagged labour market concerns even as inflation remained elevated while President Donald Trump’s tariffs bite.
The US Fed also said it will begin purchasing US Treasury Bills on 12 December and will purchase $40 billion worth of Treasury Bills in 30 days.
Summary of US Fed decisions on 10 December 2025:
- US Fed cuts rates by 25 bps in 3rd rate cut of 2025
- The Fed will consider “extend and timing” of additional adjustments
- The Fed will begin purchasing US Treasury Bills on 12 December
- The Fed will buy $40 billion of US Treasury bills in 30 days
- FOMC members Schmid and Goolsbee dissent in favour of no change
- US Federal Reserve signals rate cuts may be done for now
This is a developing story. More to come.