Federal Reserve the United States central bank has announced another interest-rate cut, lowering its benchmark rate by 25 basis points to a target range of 3.50%–3.75%.
This marks the third time in 2025 that the Fed has reduced borrowing costs, reflecting concerns over a cooling labour market and limited economic data following a government shutdown.
While the rate cut intends to support employment and make credit more affordable, it draws criticism from those worried it could reignite inflation and signal uncertainty about the economy’s long-term outlook.
Going into 2026, the central bank expects only one more rate cut a reflection of internal divisions and an uncertain inflation-vs.-jobs balance.