Fed cuts rates, but not everyone's on board
The US Federal Reserve just lowered interest rates again in December 2025, dropping them to 3.5%-3.75%.
But this move wasn't exactly a team decision—six officials opposed the cut in projections, and two voting members formally dissented, showing some rare disagreement inside the Fed.
The split mainly comes down to how close they think the economy is to hitting that 2% inflation goal.
What's behind the rate cut?
The main reason for the cut: the job market has been cooling off, with fewer hires and more people out of work.
Still, some at the Fed are worried about stubborn inflation and say there isn't enough fresh data after a long government shutdown.
The next big moment? Key economic reports in January will help decide what happens next—though for now, most expect only one more rate cut next year.