Interest Rates 9 December 2025 - 11 December 2025

The Federal Reserve’s final meeting of 2025 has delivered exactly what Wall Street expected on paper – a third quarter‑point rate cut – but the message around it is anything but simple. Stocks have pushed toward fresh highs, bond yields are slipping, and index futures are flashing a more cautious tone as investors digest what many are calling a classic “hawkish cut.”

The S&P 500 finished Wednesday’s session within a hair’s breadth of its all‑time high after the Federal Reserve delivered a widely expected quarter‑point rate cut and signaled it may now pause, capping one of the most closely watched trading days of 2025.

The Dow Jones Industrial Average roared higher on Wednesday, December 10, as Wall Street cheered a widely expected interest‑rate cut from the Federal Reserve and a signal that the pace of easing is likely to slow from here.

The Federal Reserve has delivered its third consecutive interest-rate cut of 2025, lowering the federal funds target range by 25 basis points to 3.50%–3.75% at its December 10 FOMC meeting.Federal Reserve+1

The U.S. Federal Reserve begins its final policy meeting of 2025 today, Tuesday, December 9, with investors overwhelmingly betting on another interest rate cut and watching just as closely for clues about what happens to borrowing costs in 2026. The two-day Federal Open Market Committee meeting runs December 9–10 and will conclude with a policy statement at 2 p.m. ET on Wednesday, followed by Chair Jerome Powell’s press conference. Federal Reserve+1