In 2025, the Fed’s target federal funds rate ended the year in the 3.50% to 3.75% range after a series of cuts late in the year. That means the rate was higher earlier in 2025 and then moved down as the year went on.

2025 Fed rate path

  • The Fed held rates at the start of 2025, then began cutting later in the year.
  • By October 2025, the target range was 3.75% to 4.00%.
  • By December 2025, it had been cut again to 3.50% to 3.75%.

Plain-English takeaway

If you’re asking for the Fed rate at the end of 2025 , the clean answer is 3.50%–3.75%. If you meant the rate throughout 2025, it changed during the year rather than staying fixed.

HTML version

Time in 2025Fed target range
October 20253.75%–4.00%
December 20253.50%–3.75%

**TL;DR:** The Fed rate in 2025 finished at **3.50% to 3.75%**.