Fed Convenes: Rate Cut Hopes, Divisions
The Federal Reserve's policy committee commenced its two-day meeting on December 9, 2025, with widespread anticipation of a third consecutive interest rate cut, expected to lower the benchmark fed funds rate by 25 basis points to its lowest level since 2022. This highly anticipated decision, driven by recent weaker-than-expected economic reports and indicated by an 87-89% probability from the CME Group's FedWatch tool, comes amidst a "muddy economic picture," growing divisions among FOMC members, and incomplete economic data due to a recent government shutdown.
