Breaking US Federal Reserve Rate Cut Update: Fed Slashes Rates to 3.5%-3.75% in December 2025 – Save Thousands on Mortgages and Loans Now
যুক্তরাষ্ট্রের কেন্দ্রীয় ব্যাংক ফেডারেল রিজার্ভ (Fed) ২০২৫ সালের শেষ মিটিংয়ে সুদের হার ০.২৫ শতাংশ কমিয়ে ৩.৫%-৩.৭৫% করেছে। এটি টানা তৃতীয় কাট, কিন্তু কমিটিতে মতভেদ ছিল—৯-৩ ভোটে পাস হয়েছে। এর ফলে মর্টগেজ, অটো লোন এবং ক্রেডিট কার্ডের সুদ কমবে, যা আমেরিকানদের হাজার হাজার ডলার সেভ করতে সাহায্য করবে। তবে ২০২৬-এ শুধু একটি কাটের ইঙ্গিত দেওয়া হয়েছে।
The Decision and Divisions Within the Fed
Fed Chair Jerome Powell led the majority in approving the cut, emphasizing support for the labor market amid signs of softening job gains. However, three members dissented:
- Governor Stephen Miran favored a more aggressive 50 basis point cut.
- Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change.
This level of dissent—the most since 2019—reflects a "close call" as Powell described it. Some officials worry about persistent inflation, while others prioritize preventing unemployment rises.
The Dot Plot: A Signal for Fewer Cuts Ahead
The updated "dot plot"—anonymous projections from FOMC members—showed little change from September. The median expectation remains just one 25 basis point cut in 2026 and another in 2027, leading to a longer-run rate around 3%. This suggests the Fed views current rates as nearing "neutral"—neither stimulating nor restricting the economy excessively.
Economic projections were slightly upgraded: GDP growth for 2026 revised to 2.3% (from 1.8%), inflation lower, and unemployment stable around 4.4%-4.5%. Powell noted the Fed is "well positioned to wait and see" before further moves.
Market Reaction: Stocks Surge on Relief
Markets reacted positively to the cut, viewing it as confirmation of ongoing easing despite the cautious outlook. The Dow Jones Industrial Average jumped over 500 points, the S&P 500 neared record highs, and small-cap stocks in the Russell 2000 hit all-time peaks. Investors cheered lower borrowing costs boosting corporate profits and consumer spending.
However, the signal of fewer future cuts tempered some enthusiasm, leading to volatility during Powell's press conference.
Benefits for Americans: Cheaper Borrowing and Potential Savings
This rate cut directly impacts everyday finances:
- Mortgages and Home Loans — While 30-year fixed rates (around 6.2%) are influenced more by long-term Treasuries, expectations of stability could push them toward the upper-5% range by late 2026. Refinancing now or soon could save homeowners hundreds monthly. Home equity lines of credit (HELOCs) will see immediate drops.
- Auto Loans and Credit Cards — Variable-rate debts tied to the prime rate will decrease quickly. Average credit card APRs could fall, easing burdens for millions carrying balances.
- Personal and Business Loans — Cheaper borrowing encourages spending, investment, and job creation—key for economic growth.
- Savings Accounts — High-yield savings rates may dip slightly but remain attractive compared to pre-2022 levels.
For a $500,000 mortgage, lower rates since the peaks could mean $584 less per month. Businesses benefit from reduced costs, potentially leading to hiring and expansion.
What’s Next? A Pause Likely in 2026
With rates now in a "neutral" zone, experts predict a pause unless job data weakens significantly. Inflation remains "somewhat elevated," and upcoming policy changes (like tariffs) could push prices higher. The next FOMC meeting is in January 2026—no cut is priced in yet.
In summary, this December cut provides immediate relief and boosts markets, but signals caution ahead. Americans should act now on refinancing or big purchases to lock in savings before potential pauses. The Fed balances supporting growth while taming inflation—delivering benefits today but tempering expectations for tomorrow.