US Fed cuts interest rates by 25 bps:Key lending rate to range between 3.75% and 4% to hedge against growing labour market risks

The Jerome Powell-led US Federal Reserve’s Federal Open Market Committee (FOMC) in its October 2025 policy decision announcement decided to cut the key benchmark interest rates by 25 basis points (bps) to the range of 3.75% to 4.00%, according to the official data released on 29 October 2025. Policymakers voted 10-2 in favor of lowering the bank’s key lending rate to between 3.75% and 4.00%. The US central bank’s move to cut the interest rates for the second time comes amid elevated levels of inflation in the country and a full-scale US government shutdown, resulting in the lack of economic data for the Fed to analyse. The Fed last month cut interest rates for the first time since last December.