Markets Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Federal Reserve Cuts Rates 25 Basi Markets Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Federal Reserve Cuts Rates 25 Basi

Federal Reserve Cuts Rates 25 Basis Points, With Two Members Voting for Steady Policy

Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail

Federal Reserve Cuts Rates 25 Basis Points, With Two Voting for Steady Policy

The anticipated move comes as policymakers are still operating without several key economic data releases that remain delayed or suspended due to the U.S. government shutdown.

By James Van Straten, Stephen Alpher|Edited by Stephen Alpher
Updated Dec 10, 2025, 7:29 p.m. Published Dec 10, 2025, 6:51 p.m.
Federal Reserve Chair Powell Holds Press Conference

What to know:

  • As expected, the Federal Reserve trimmed its benchmark fed funds rate range by 25 basis points on Wednesday afternoon.
  • Today's cut is notable given the unusually large amount of public dissension among Fed members for further monetary ease.
  • Two Fed members dissented from the rate cut, preferring instead to hold rates steady, while one member voted for a 50 basis point rate cut.

The U.S. Federal Reserve delivered a widely expected 25 basis point rate cut on Wednesday, lowering the range on its benchmark fed funds rate by 25 basis points to 3.50% to 3.75%. This marks the third straight quarter point reduction and brings short-term borrowing costs to their lowest level since 2022.

"Uncertainty about the economic outlook remains elevated," said the Fed in its policy statement. "The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months."

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up

The Fed in its statement also noted that reserve balances had declined and said it intends to begin purchases of shorter-term Treasury paper as needed to "maintain an ample supply of reserves."

The price of bitcoin BTC$92,624.70 was volatile in the minutes following the news, but remaining around the $92,400 level. U.S. stocks moved modestly higher and the 10-year Treasury yield dipped two basis points to 4.15%

Today's rate cut is of particular note given the unusually large amount of public dissension among Fed members about the course of monetary policy. Several in recent weeks had loudly voiced their opposition ahead of time to not just today's easing, but also the central bank's 25 basis point reduction at its previous meeting in October.

Indeed two members — the Kansas City Fed's Jeffrey Schmid and the Chicago Fed's Austan Goolsbee — voted to hold policy steady. A third member, Fed Governor Stephen Miran — a recent Trump appointee — voted for a 50 basis point cut.

Economic projections update

Alongside the policy decision, this Fed meeting came with an updated set of the central bank's economic projections.

Core inflation is now seen at 3% for 2025 and 2.5% for 2026, each down 10 basis points from previous estimates. GDP growth is new expected to be 1.7% this year and 2.3% in 2026, up from previously estimated 1.6% and 1.8%, respectively.

The so-called "dot plot" is little-changed, with policymakers still seeing just one rate cut in 2026 even as markets have priced in two rate cuts next year.

Today's news comes at a moment when policymakers are still operating without several key economic data releases that remain delayed or suspended due to the U.S. government shutdown. Also at play is President Trump's continued bashing of current Fed Chair Jerome Powell alongside his search for a replacement when Powell's term as chair ends next year.

Attention now turns to Powell's post-meeting press conference at 2:30 pm ET, where listeners will try and further discern his and the Fed's thoughts on the future path of monetary policy. Prior to Powell's appearance, traders have priced in a 24% chance of another rate cut in January, per CME FedWatch.

Jerome PowellFederal ReserveBitcoin NewsBreaking News

More For You

Protocol Research: GoPlus Security

Commissioned byGoPlus

What to know:

  • As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
  • GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
  • Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
View Full Report

More For You

Stellar Edges Higher to $0.251 Despite Altcoin Market Apathy

Trading volume surged 19% above weekly averages as XLM consolidated around critical $0.25 support level.

What to know:

  • XLM gained 0.85% to $0.251 while underperforming broader crypto market by 0.45%.
  • Trading volume spiked 19.36% above 7-day average, signaling institutional interest.
  • Price established volatile consolidation pattern with $0.25 emerging as key support.
Read full story
Latest Crypto News

Paxful Pleads Guilty to Aiding Crime, Ignoring AML Laws

The Protocol: Stripe’s Tempo Testnet Goes Live

Stellar Edges Higher to $0.251 Despite Altcoin Market Apathy

Hedera Rises 1.8% to $0.1372 as Government Adoption Momentum Builds

Surf Raises $15M to Build AI Model Tailored to Crypto Research

ICP Extends Decline as Range Support Breaks, Testing New Lows Near $3.48

Top Stories

SpaceX’s $300M Bitcoin Stack Puts Crypto Inside the World’s Biggest Planned IPO

Tether Rolls Out Privacy-Focused Health App as Expansion Into AI Accelerates

GameStop Posted $9.4M Loss on Bitcoin Holdings in Q3

Strategy Pushes Back on MSCI’s Digital Asset Exclusion Proposal

Eric Trump's American Bitcoin and Anthony Pompliano's ProCap Add to BTC Holdings

Telegram Ring Ran Pump-and-Dump Network That Netted $800K in a Month: Solidus Labs

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
Gold Hits $3,700 as Sprott’s Wong Says Dollar’s Store-of-Value Crown May Slip

Gold Hits $3,700 as Sprott’s Wong Says Dollar’s Store-of-Value Crown May Slip

The post Gold Hits $3,700 as Sprott’s Wong Says Dollar’s Store-of-Value Crown May Slip appeared on BitcoinEthereumNews.com. Gold is strutting its way into record territory, smashing through $3,700 an ounce Wednesday morning, as Sprott Asset Management strategist Paul Wong says the yellow metal may finally snatch the dollar’s most coveted role: store of value. Wong Warns: Fiscal Dominance Puts U.S. Dollar on Notice, Gold on Top Gold prices eased slightly to $3,678.9 […] Source: https://news.bitcoin.com/gold-hits-3700-as-sprotts-wong-says-dollars-store-of-value-crown-may-slip/
Share
BitcoinEthereumNews2025/09/18 00:33
ZKP Crypto Presale Auction: 8,000x Returns Slipping Away with Each Burned Coin

ZKP Crypto Presale Auction: 8,000x Returns Slipping Away with Each Burned Coin

Zero Knowledge Proof (ZKP) operates a 450-day crypto ICO, burning unsold coins each day. Supply drops through phases, plus a strong deflationary design might create
Share
coinlineup2026/01/23 01:00