Federal Reserve cuts key rate for third straight time to 3.5–3.75% amid labor‑market risks
The Federal Reserve cut its key rate for the third consecutive time to 3.5–3.75%, citing rising risks to employment. Inflation is around 3%, and unemployment has risen to 4.4%. The decision was supported by nine members, with three opposed. The National Bank of Ukraine will decide its rate on December 11.
By Oleg Bazylewicz
December 10, 2025 · 1 min read
The U.S. Federal Reserve lowered its key interest rate for the third consecutive time by 0.25 percentage point, bringing it to a range of 3.5–3.75%.
Federal Reserve decision
"The Committee seeks to achieve maximum employment and a long-run inflation rate of 2%. The Committee is closely monitoring risks to both components of its dual mandate and notes that the risks to employment have increased in recent months"
– Federal Reserve
Annual inflation in the U.S. remains around 3%, while the unemployment rate has risen to approximately 4.4% in recent months.
Committee vote results
Nine members of the committee supported the decision, three dissented: one proposed cutting the rate by 0.5 percentage point, and two were against any cut. Such a number of dissenting votes is atypical for the Fed; the last time something similar occurred was in September 2019.
- On Thursday, December 11, the Board of the National Bank of Ukraine will announce its decision on the policy rate, which has not changed since March 2025.
