Federal Reserve News on December 1, 2025: QT Ends, December Rate‑Cut Odds Surge, and Bank Supervision Moves to Center Stage
The Federal Reserve ended its balance-sheet tightening on December 1, 2025, halting reductions to its securities portfolio. Markets now price in a nearly 90% chance of a rate cut at the December 9–10 meeting. Internal divisions have surfaced within the FOMC, with up to five members reportedly skeptical of further cuts. Regulators released a new banking system assessment as Vice Chair Bowman described banks as “sound and resilient.”