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US Fed cuts key interest rates; read the full Powell-led FOMC statement

Upstox
By Upstox News Desk

3 min read | Updated on October 30, 2025, 07:31 IST

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SUMMARY

The Federal Open Market Committee (FOMC), led by Fed Chair Jerome Powell, has reduced the borrowing rate to a range of 3.75%-4% by a 10-2 vote. However, Powell raised doubts over another rate cut in December.

Uncertainty about the economic outlook remains elevated, FOMC said. | Image: X/@federalreserve

Uncertainty about the economic outlook remains elevated, FOMC said. | Image: X/@federalreserve

The United States Federal Reserve on Wednesday, October 29, cut key interest rates for the second consecutive meeting, stating that the job gains have slowed and inflation remains somewhat elevated.

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The Federal Open Market Committee (FOMC), led by Federal Reserve Chair Jerome Powell, has reduced the borrowing rate to a range of 3.75%-4% by a 10-2 vote. However, Powell raised doubts over another rate cut in December.

"A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it," Powell said, adding that there were strong different views at the October meeting. "The takeaway from that is that we have not made a decision about December," he said.

Federal Reserve issues FOMC statement: Full text

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. 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.
In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee decided to conclude the reduction of its aggregate securities holdings on December 1. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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