Summary of the Federal Reserve FOMC Meeting Statement (December 10, 2025) Here’s all you need to know from yesterday’s Fed announcement: 1⃣ **Rate Adjustment**: The Federal Reserve lowered the target range for the federal funds rate by 25 basis points to 3.50%-3.75%. This marks the third consecutive rate cut in 2025, with a total reduction of 1.75 percentage points. 2⃣ **Future Policy Outlook**: The committee will closely evaluate economic data and carefully consider the scope and timing of additional rate cuts. They emphasized that the current policy is at a neutral level, and the future path of rate cuts will depend on inflation and employment dynamics. 3⃣ **Treasury Bill Purchases Begin**: To maintain adequate reserve levels, the Fed will start purchasing short-term U.S. Treasury bills on December 12 (this Friday) to address reserve balances that have fallen to sufficient but replenishable levels. 4⃣ **Purchase Scale**: The Fed plans to purchase $40 billion worth of U.S. Treasury bills over the next 30 days. This move aims to enhance liquidity in the financial system but does not constitute full-scale quantitative easing. 5⃣ **Dissenting Opinions**: The vote was 9:3. Kansas City Fed President Jeffrey Schmid and Chicago Fed President Austan Goolsbee dissented, favoring no change to rates. Another dissenter, Stephen Miran, advocated for a larger 50 basis point rate cut. 6⃣ **Overall Assessment**: Fed Chair Jerome Powell stated that the current economic conditions support the possibility of further rate cuts. However, he stressed the need to monitor inflation trends and labor market developments to avoid premature or excessive easing.