Fed Cuts Rates, Sees One More Cut in 2026
Update: 2025-12-10
Description
The Federal Reserve cuts interest rates by twenty-five basis points, marking the third reduction this year, bringing the benchmark rate to a range of three point five zero percent to three point seven five percent. While the move was anticipated, three policymakers voted against it, highlighting differing views on the economy. Stocks reacted positively, with the S&P five hundred, Dow Jones Industrial Average, and Nasdaq Composite all climbing. Fed Chair Jerome Powell stated no rate hike is expected soon, boosting market confidence. The Fed anticipates one additional cut in two thousand twenty-six, an improving labor market, and stronger economic growth, driven by factors like consumer spending, AI investments, and supportive fiscal policies.
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