On December 10, 2025, the Federal Reserve announced a quarter-percentage-point rate cut, bringing the benchmark rate to the 3.5%-3.75% range. This was both the final rate cut and the final Fed meeting of 2025, so the Fed ended up delivering a total of three rate reductions over the course of this year. This means 2025 ends with the benchmark rate three-quarters of a percentage point lower than the 4.25% to 4.50% target rate we started the year with.