US FED FOMC MEETING OUTCOME: JEROME POWELL CUTS RATES BY 25 BASIS POINTS TO 3.50-3.75%

US Fed FOMC Meeting Outcome: The US Federal Reserve has announced cutting target range for benchmark rate by 25 bps to 3.5%–3.75% on Wednesday as policymakers grappled with gaps in economic data caused by the recent government shutdown and work through competing views about the risks facing the economy.

The decision to lower the benchmark policy rate drew three dissents. Chicago Fed President Austan Goolsbee joined Kansas City Fed President Jeffrey Schmid in arguing the policy rate should be left unchanged, and Fed Governor Stephen Miran again advocated a larger half-percentage-point reduction, news agency Reuters reported.

The last top-line data the Fed received on inflation and jobs, its two main areas of concern, was for September, when the unemployment rate rose slightly to 4.4%, and the central bank's preferred measure of inflation was at 2.8% versus its 2% target.

As of September, policymakers took a more hawkish view, with the median projection showing the benchmark rate ending 2026 in the 3.25%-3.50% range. Eight of the 19 projections were higher, and some of the regional officials have tightened their views of appropriate policy even further since then.

The Federal Open Market Committee (FOMC) has twelve members:

Seven members of the Board of Governors of the Federal Reserve System;

The President of the Federal Reserve Bank of New York;

And four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.

Also Read: Trump slams Fed’s 25 bps rate cut as 'too small' | STATEMENT

The rotating seats are filled from four groups of banks (one president from each group): Boston, Philadelphia, and Richmond

Cleveland and Chicago

Atlanta, St. Louis, and Dallas

Minneapolis, Kansas City, and San Francisco

Non-voting Reserve Bank presidents attend the committee meetings, participate in discussions, and contribute to the committee’s assessment of the economy and policy options.

Know About the FOMC Committee Members for 2025

Jerome Powell, Board of Governors, Chair

John C. Williams, New York, Vice Chair

Michael S. Barr, Board of Governors

Michelle W. Bowman, Board of Governors

Susan M. Collins, Boston

Lisa D. Cook, Board of Governors

Austan D. Goolsbee, Chicago

Philip N. Jefferson, Board of Governors

Stephen I. Miran, Board of Governors

Alberto G. Musalem, St. Louis

Jeffrey R. Schmid, Kansas City

Christopher J. Waller, Board of Governors

Alternate Members

Beth M. Hammack, Cleveland

Neel Kashkari, Minneapolis

Lorie K. Logan, Dallas

Anna Paulson, Philadelphia

Sushmita Shukla, First Vice President, New York

Know How Many Meetings the FOMC Holds in a Year

The FOMC holds eight regularly scheduled meetings each year. In these meetings, the committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-term goals of price stability and sustainable economic growth.

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2025-12-10T21:22:18Z