The Federal Reserve cut interest rates three times in 2025, each by a quarter of a percentage point. The most recent cut, on Dec. 10, left benchmark rates at 3.5% to 3.75%. The cut was controversial, with a six-year high of three dissents.
In a news conference after the decision, Federal Reserve Chair Jerome Powell said that further cuts would be difficult to justify, but post-shutdown data would likely make future decisions easier.
