Federal Reserve Implements Third Rate Cut of the Year Amid Labor Market Concerns and Persistent Inflation

Dec 11, 2025 03:13 am CST

The US Federal Reserve has cut interest rates for the third consecutive time this year to a range between 3.50% and 3.75%, citing labor market concerns despite elevated inflation. The decision revealed deepening divisions among Fed officials, with three members voting against the reduction while the central bank projected at least one more rate cut next year and revised its 2026 GDP growth forecast upward to 2.3%.