United States Interest Rate

Several Federal Reserve officials favored lowering the target range for the federal funds rate in October, though many could have supported leaving rates unchanged, and some opposed a reduction, minutes from the last FOMC meeting showed. When discussing the near-term path of monetary policy, participants expressed sharply divergent views on what decision would be most appropriate at the December meeting. Most believed further downward adjustments to the target range would likely be warranted, though several of them emphasized that another 25bps cut might not be appropriate in December. A number of participants judged that an additional rate cut in December could be suitable if the economy evolved broadly as expected over the intermeeting period. Many others suggested that, under their outlooks, keeping the target range unchanged for the remainder of the year would likely be appropriate. The Fed lowered the federal funds rate by 25 bps to 3.75%–4.00% at its October 2025 meeting.