Fed Cuts Interest Rates in Divided Vote

Policymakers cut rates by a quarter point, citing a slowing job market. Three officials dissented on differing grounds.

Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve in Washington on Dec. 10, 2025. Chip Somodevilla/Getty Images

The Federal Reserve followed through on a widely expected interest rate cut at its final policy meeting of 2025, but the Dec. 10 decision was marked by sharp dissent among officials.

Members of the Federal Open Market Committee voted 9–3 to lower the benchmark federal funds rate by a quarter point to a new target range of 3.5 percent to 3.75 percent.