The Federal Reserve’s final policy meeting of 2025 gets underway today, December 10, with investors and economists zeroing in on whether the central bank will deliver another interest rate cut amid a backdrop of cooling inflation and steady economic growth.
The two-day gathering of the Federal Open Market Committee, or FOMC, kicked off Tuesday and wraps up Wednesday afternoon. At 2 p.m. Eastern Time, the Fed will release its official statement on monetary policy, including any changes to the benchmark federal funds rate, which currently sits at 4.75% to 5%. Just 30 minutes later, at 2:30 p.m. ET, Fed Chair Jerome Powell will hold a live press conference to explain the decision and take questions from reporters.
Anyone can tune in for free via the Federal Reserve’s official website at federalreserve.gov, where a live video stream will be available. The event is also expected to air on major financial news networks like CNBC, Bloomberg, and Fox Business.
Heading into the meeting, futures markets are pricing in a strong likelihood of a 25-basis-point rate reduction, bringing the target range down to 4.5% to 4.75%. This would mark the third consecutive cut this year, following similar 25-point easings in September and November. Such a move would continue the Fed’s gradual shift toward a more accommodative stance after aggressive hikes in 2022 and 2023 to combat post-pandemic inflation.
Powell faces a packed agenda during his question-and-answer session. Reporters are likely to press him on the sustainability of recent progress in bringing inflation closer to the Fed’s 2% target, the resilience of the labor market, and potential risks from geopolitical tensions or fiscal policy under the incoming administration. The chair has emphasized a data-dependent approach, noting that while rate cuts are on the table, the pace will hinge on incoming economic indicators.
Market watchers, including those tracking the S&P 500, view today’s outcome as a pivotal moment for equities. A confirmed cut could provide the boost stocks need to extend their rally into year-end, while any signal of a slower path to further reductions might temper optimism. Bond yields and currency traders will also hang on Powell’s tone for clues about borrowing costs in the months ahead.
As the fed meeting today unfolds, it serves as a capstone to a year of recalibration for the U.S. economy, with the central bank’s actions continuing to ripple through households, businesses, and global markets.