December 10, 2025

A divided Federal Reserve voted to lower interest rates again on Wednesday, but officials signaled that another cut won’t be immediate, ratcheting up tensions with President Donald Trump.

The decision to reduce rates by a quarter point was hotly debated within the central bank, but Fed Chair Jerome Powell was able to corral his rate-setting committee into moving forward with one more cut, the third time the central bank has lowered borrowing costs this year. The central bank’s benchmark rate is now at a range of 3.5 percent to 3.75 percent, the lowest in three years.

Still, three Fed policymakers dissented: Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid wanted to hold rates steady, while Fed board member Stephen Miran — who is on unpaid leave from his job as White House chief economist — would have preferred a larger cut.

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