The most recent major move being reported is that the U.S. Federal Reserve’s last three interest rate cuts (in September, October, and December 2025) were each 0.25 percentage points (25 basis points) before they paused in January 2026.

Quick Scoop

So, how much was the interest rate cut?

  • The cuts being talked about in the latest coverage are:
    • September 2025: 0.25 percentage point cut.
* October 2025: 0.25 percentage point cut.

* December 2025: 0.25 percentage point cut.
  • In total, that streak amounted to a 0.75 percentage point reduction before the Fed stopped cutting and held rates steady in January 2026.

Put simply: the “recent interest rate cut” people are referring to in early 2026 was part of a series of quarter‑point (25 bps) cuts.

Where rates stand now (context)

  • After those three cuts, the Fed funds rate is now in a range of 3.5%–3.75% , and the Fed has just paused further cuts at its January 2026 meeting.
  • Officials signaled that they’re more cautious now because inflation is still above the 2% target, even though the job market has cooled.

Why this matters

  • A 0.25 percentage point cut is considered a small, gradual move, often used when the central bank wants to support growth without panicking markets.
  • Three consecutive 0.25 cuts still add up to a meaningful easing of borrowing costs for mortgages, business loans, and credit lines over a few months.

Example: how a 0.25 cut feels

Imagine a variable-rate loan at 6.00%.

  • After one 0.25 cut, it might move to about 5.75%.
  • After three such cuts in a row, it could fall to around 5.25%, noticeably lowering monthly interest costs over time (exact numbers depend on the contract, but the direction is the same).

Bottom line: the latest widely discussed interest rate moves were quarter‑point cuts (25 basis points each) , with three in a row through late 2025, and no additional cut at the January 2026 meeting.

Information gathered from public forums or data available on the internet and portrayed here.