The December cut trimmed the target range to roughly 3.50% to 3.75%. The Fed’s Summary of Economic Projections in December penciled in just one reduction in 2026. Markets, however, have been counting on two rate cuts next year.

The Fed lowered its benchmark interest rate by a quarter percentage point, in an effort to shore up a weakening job market. With inflation remaining stubbornly high, it was not a slam dunk decision.

Earlier this month, the U.S. Federal Reserve delivered the third interest rate cut of 2025. Policymakers are concerned about the rising unemployment rate, which could foreshadow deeper economic issues.

Fed officials have been divided about whether to boost the job market by further lowering interest rates, and a surprise uptick in the unemployment rate Tuesday wasn't enough to resolve the debate.

The Federal Reserve cut its benchmark interest rate by a quarter point for the third time since September, bringing it to about 3.6%, the lowest in nearly three years.

The Federal Reserve will announce if they will cut rates again in December's meeting — their last meeting of 2025. The decision will determine whether borrowers get more relief on interest rates.

Your money in the new year. WRAL’s 5 On Your Side breaks down the good and bad of the new interest rate cut, and how it could impact your family's finances in 2026.

The Federal Reserve has battled a variety of economic troubles over the past 35 years. Between tech busts, a financial crisis and a pandemic, not to mention periods of too little inflation and too much,

The Federal Reserve will make its final interest rate decision of 2025 on Wednesday, setting up a pivotal year for both the U.S. economy and the central bank as President Trump prepares to install

Discover how the Federal Reserve influences aggregate demand through interest rate adjustments and why fiscal policy might offer more direct impacts on spending.