On December 10, 2025, a meeting of the Federal Open Market Committee of the US Federal Reserve (FOMC) took place, where a decision was made to lower the key interest rate by 0.25 percentage points to a level of 3.5–3.75%. This marks the third consecutive step towards easing monetary policy, initiated in September of this year.
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Impact on Financial and Cryptocurrency Markets
The Fed’s rate cut was not a surprise for financial markets. Most analysts had predicted this scenario, so the reaction from investors was muted. Specifically, the price of Bitcoin instantly rose to $94,476 but soon lost those gains.
Experts emphasize that expectations for the rate change had already been factored into the prices of risk assets, so the regulator’s policy easing had little significant impact on the crypto market.
This decision was the final one for 2025. The next Fed meeting is scheduled for the end of January 2026. According to estimates from the CME exchange, the probability of a further rate cut in January is less than 20%.
Key Points from Fed Chair Jerome Powell’s Speech
After the meeting, Fed Chair Jerome Powell held a press conference where he explained the regulator’s position. He emphasized that the decision was made under conditions of limited statistics due to the US government shutdown, but the overall economic situation remained stable compared to October.
“The regulator made decisions in the context of a lack of data. They were not prepared and published due to the US government shutdown. At the same time, he noted that the situation had not changed significantly from what was observed in October 2025.”
- Indicators point to moderate economic growth.
- Consumer spending remains stable, while corporate investment in fixed assets is increasing. In contrast, activity in the housing sector remains weak.
- The government shutdown negatively affected business activity in the fourth quarter, but a recovery is expected soon.
- The projected GDP growth for 2025 is 1.7%, and for 2026 it is 2.3%.
- The levels of layoffs and hiring remain low, but unemployment is rising, as confirmed by the latest report from September 2025.
- Employment growth rates are slowing, partly due to reduced immigration.
- Inflation exceeds target benchmarks, but assessing its dynamics is difficult due to a lack of complete data.
- In the short term, there are risks of rising inflation, while further declines in the labor market are possible.
- Since September 2025, the rate has reached a “neutral level,” with expectations of further declines in inflation and increases in employment.
- At the current meeting, a decision was made to begin purchasing short-term Treasury bonds to maintain the necessary level of reserves in the long term.
Powell also stated that the Fed is temporarily refraining from further adjustments to monetary policy until new macroeconomic data is received, particularly regarding employment and the consumer price index. Among the factors affecting economic growth amid rising unemployment, he noted the development of artificial intelligence.
During the press conference, Jerome Powell was also asked questions with political undertones, particularly regarding future appointments at the Fed, but he avoided discussing political aspects and did not comment on the progress of interviews for the position of the regulator’s chair.