The Federal Reserve lowered the federal funds rate by 25 bps to a target range of 3.75%–4.00% at its October 2025 meeting, in line with market expectations. The move followed a similar cut in September, bringing borrowing costs to their lowest level since 2022. Policymakers cited increasing downside risks to employment in recent months while inflation has moved up since earlier in the year and remains somewhat elevated. Governor Miran preferred to lower the target range for the federal funds rate by 50bps and Governor Schmid dissented in favor of holding rates steady. In addition, the central bank decided to conclude the reduction of its aggregate securities holdings on December 1.