The US Federal Reserve has concluded calendar year 2025 with a third consecutive rate cut, as the majority of members in the Jerome Powell-led panel voted in favour of lowering the benchmark lending rates by 25 basis points.

The move, in line with expectations, has reduced the rates from 3.75–4% to 3.5–3.75%. The decision, however, was not unanimous as nine members voted in favour of reducing the rates by a quarter point, whereas three dissented.

Among those voting against this action was Fed Governor Stephen Miran, who preferred to lower the target range for the federal funds rate by basis points. On the other hand, Austan Goolsbee and Jeffrey Schmid—also members of the Federal Open Market Committee (FOMC)—were in favour of maintaining status quo.

Ahead of the official announcement, the market was pricing in an 89.4% probability of 25-bps rate cut, according to CME FedWatch.