A divided Fed is expected to cut rates for a 3rd straight time

Scott Horsley

December 10, 2025 / 2:00 am

The Federal Reserve is again expected to lower its benchmark interest rate by a quarter percentage point Wednesday, in an effort to support a weakening job market. But stubborn inflation and delayed economic data could complicate the Fed's decision, leading to more-than-usual disagreement within the rate-setting committee.

A rate cut could make it slightly cheaper to borrow money to buy a car, expand a business or carry a balance on a credit card. The Fed also lowered rates at its last two meetings, but the decisions were not unanimous, highlighting the competing pressures that the central bank is facing.

Inflation is still well above the Fed's target, which would ordinarily call

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