U.S. Federal Reserve cuts interest rate by 25 basis points

On Wednesday, the U.S. Federal Reserve delivered its third interest rate cut of 2025, lowering the benchmark federal funds rate by 25 basis points to a new target range of 3.5%–3.75%. The decision, aimed at supporting a gradually softening labor market, follows identical quarter-point reductions in September and October — the first cuts since the tightening cycle began. With this latest move, the Fed has now eased policy by a total of 75 basis points this year while signaling a more