The last Federal Reserve rate cut occurred on December 10, 2025 , when the Federal Open Market Committee (FOMC) lowered the federal funds rate by 25 basis points to a target range of 3.5%–3.75%.

What changed in that decision

  • It was the third consecutive cut in 2025, bringing the policy rate down from a peak of 5.25%–5.50% in 2024.
  • The Fed signaled a cautious outlook for 2026 , projecting only one additional quarter‑point cut next year if conditions hold.

Quick reference table

Item| Detail
---|---
Date of last cut| December 10, 2025 14
Size of cut| 0.25 percentage points (25 basis points) 15
New target range| 3.5%–3.75% federal funds rate 15
Number of cuts in 2025| 3 total reductions (75 bps total) 57
Projected 2026 cuts| Median FOMC forecast: 1 quarter‑point cut 35

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