Federal Reserve Releases FOMC Statement
The Federal Reserve has released its latest FOMC statement on December 10, 2025, at 2:00 p.m. EST. Recent economic indicators suggest moderate growth in economic activity. However, job gains have seen a slowdown this year, with the unemployment rate slightly increasing through September.
Key Findings from the FOMC Statement
Recent data indicates that inflation has risen since the beginning of the year and currently remains somewhat high. The Federal Reserve is focused on achieving its dual mandate of maximum employment and maintaining inflation at a stable 2 percent over the long term. Yet, uncertainty regarding the economic outlook continues to be significant.
Changes to the Federal Funds Rate
In response to these conditions, the Federal Open Market Committee (FOMC) decided to lower the target range for the federal funds rate. The new target range is set at 3.5% to 3.75%, a reduction of 0.25 percentage points. This decision reflects the Committee’s awareness of rising risks to employment and the evolving economic environment.
Future Monetary Policy Guidance
The FOMC emphasized its commitment to monitoring various factors, including labor market conditions and inflation expectations, which could affect the economic outlook. The Committee signaled readiness to adjust its monetary policy stance should risks that hinder its goals arise.
- Current federal funds rate target: 3.5% to 3.75%
- Focus on achieving 2% inflation rate
- Monitoring of labor market and inflation trends
FOMC Participants and Voting Outcomes
The voting members supporting this decision included:
- Jerome H. Powell, Chair
- John C. Williams, Vice Chair
- Michael S. Barr
- Michelle W. Bowman
- Susan M. Collins
- Lisa D. Cook
- Philip N. Jefferson
- Alberto G. Musalem
- Christopher J. Waller
Members voting against the motion were Stephen I. Miran, who favored a 0.5 percentage point reduction, and Austan D. Goolsbee and Jeffrey R. Schmid, who suggested no change to the rate.
This summary provides a clear overview of the FOMC’s latest actions and considerations as outlined in the December 2025 statement. For further inquiries, please direct your emails to [email protected] or contact 202-452-2955.
