Fed Cuts Rates to 3.75–4.00%

On Oct. 29, 2025 the Federal Reserve lowered its target federal funds rate by 25 basis points to a 3.75–4.00% range — its second cut this year — and Chair Jerome Powell held a press conference to explain the decision. The FOMC said economic activity has expanded at a moderate pace, job gains have slowed and unemployment has edged up while inflation has moved up and remains somewhat elevated; it reaffirmed its commitment to maximum employment and a 2% inflation goal. The Fed also said it will conclude the reduction of its aggregate securities holdings on Dec. 1 and will carefully assess incoming data and risks, remaining prepared to adjust policy if needed. Policymakers cited weak jobs reports and an ongoing government shutdown as part of the backdrop for the cut, which came amid public political pressure including President Trump’s calls for lower rates. News organizations provided live coverage as markets reacted to the policy shift.