Source: Jin10

On December 11, the Federal Reserve voted 9-3 to lower the benchmark interest rate by 25 basis points to a range of 3.50%-3.75%, marking the third consecutive meeting of rate cuts. The policy statement removed the description of the unemployment rate as "relatively low." The latest dot plot maintains the forecast of a 25 basis point rate cut in 2026.

Additionally, the Federal Reserve will purchase $40 billion in Treasury securities over the next 30 days starting December 12 to maintain adequate reserves.

Full Text of the Interest Rate Decision

Available data indicate that economic activity is expanding at a moderate pace. Job growth has slowed this year, and the unemployment rate has risen as of September. More recent indicators are consistent with this situation. Inflation has risen since the beginning of the year and remains at elevated levels.

The committee's long-term goals are to achieve maximum employment and a 2% inflation rate. Uncertainty regarding the economic outlook remains high. The committee is closely monitoring the risks at both ends of its dual mandate and believes that the downside risks to employment have increased in recent months.

To support these goals and considering the changes in risk balance, the committee decided to lower the target range for the federal funds rate by 25 basis points to 3.50% to 3.75%. In assessing the magnitude and timing of any further adjustments to the federal funds rate target range, the committee will carefully evaluate the latest data, the evolving economic outlook, and the risk balance. The committee is firmly committed to supporting maximum employment and bringing inflation back to the 2% target.

In evaluating the appropriate stance of monetary policy, the committee will continue to monitor the impact of the latest information on the economic outlook. If risks emerge that could impede the achievement of the committee's goals, the committee will be prepared to adjust the monetary policy stance in a timely manner. The committee's judgment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, and developments in financial and international conditions.

The committee believes that the reserve balances have declined to adequate levels and will initiate the purchase of short-term U.S. Treasury securities as needed to maintain adequate reserves on an ongoing basis.

Voting in support of this monetary policy action were: Chair Jerome H. Powell, Vice Chair 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. Voting against were Stephen I. Miran, who preferred a 50 basis point cut to the federal funds rate target range at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred to keep the federal funds rate target range unchanged at this meeting.

Decision on Monetary Policy Operations

To implement the monetary policy stance announced by the Federal Open Market Committee on December 10, 2025, the Federal Reserve made the following decisions:

The Board of Governors of the Federal Reserve System unanimously voted to lower the reserve balance rate to 3.65% effective December 11, 2025.

As part of the policy decision, the Federal Open Market Committee voted to instruct the New York Federal Reserve Bank's open market trading desk to conduct transactions in the System Open Market Account according to the following domestic policy directive until further notice:

"Effective December 11, 2025, the Federal Open Market Committee instructs the trading desk:

To conduct open market operations as needed to maintain the federal funds rate within the target range of 3.50% to 3.75%.

To conduct standing overnight repurchase agreement operations at a rate of 3.75%.

To conduct standing overnight reverse repurchase agreement operations at an operation rate of 3.50%, with a daily limit of $160 billion for each counterparty.

To increase the securities holdings in the System Open Market Account by purchasing Treasury securities and, if necessary, other U.S. government securities with remaining maturities of no more than three years, to maintain adequate levels of reserves.

To reinvest the full principal payments of U.S. government securities held by the Federal Reserve in Treasury securities. To reinvest the full principal payments of agency securities held by the Federal Reserve in Treasury securities."

In related actions, the Board of Governors unanimously voted to lower the primary credit rate by 25 basis points to 3.75%, effective December 11, 2025. In taking this action, the Board approved the request submitted by the boards of the New York, Philadelphia, St. Louis, and San Francisco Federal Reserve Banks to set this rate.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。