Fed Lowers Rates by 25bps For 2nd Time

2025-10-29 18:02 By Joana Taborda 1 min. read

The Federal Reserve lowered the federal funds rate by 25 bps to a target range of 3.75%–4.00% at its October 2025 meeting, in line with market expectations.

The move followed a similar cut in September, bringing borrowing costs to their lowest level since 2022.

Policymakers cited increasing downside risks to employment in recent months while inflation has moved up since earlier in the year and remains somewhat elevated.

Governor Miran preferred to lower the target range for the federal funds rate by 50bps and Kansas City Fed President Schmid dissented in favor of holding rates steady.

The Fed said it will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of its goals.

In addition, the central bank decided to conclude the reduction of its aggregate securities holdings on December 1.



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