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Federal Reserve News Today
Interest Rate Policy
On October 29, 2025, the Federal Reserve reduced its benchmark interest rate by 25 basis points to a range of 3.75%–4.00%. This decision was influenced by signs of a weakening labor market and persistent inflationary pressures.
San Francisco Federal Reserve President Mary Daly supported this rate cut and indicated openness to another reduction at the upcoming December 9–10 meeting, contingent upon incoming economic data.
Federal Reserve Governor Lisa Cook also noted that the December meeting is "live" for a potential rate cut, emphasizing the need to assess new information, especially given the federal government shutdown that began on October 1, which has delayed critical economic data releases.
Internal Divisions
Federal Reserve officials are expressing divided views on future interest rate strategies. While some, like Governor Stephen Miran, advocate for deeper cuts, others, including Kansas City Fed President Jeffrey Schmid and Cleveland's Beth Hammack, oppose further easing due to concerns over inflation risks.
Legal Challenges
Federal Reserve Governor Lisa Cook is facing a legal battle after President Donald Trump attempted to remove her from office, alleging misrepresentation on a mortgage application—a claim she disputes. Federal judges have temporarily blocked her removal, and the case is set to be heard by the U.S. Supreme Court in January.
Loan Demand
The Federal Reserve's Senior Loan Officer Opinion Survey indicated that in the third quarter of 2025, business loan demand from mid-sized and large U.S. firms experienced its strongest increase in approximately three years. However, demand from small businesses remained largely unchanged. Despite this uptick, banks continued to tighten credit terms for firms of all sizes, though the pace of tightening has slowed.
Recent Federal Reserve Developments
- Fed's Cook says she will serve American public despite efforts to fire her, Published on Monday, November 03
- Loan demand from US mid- and large firms improves, Fed survey shows, Published on Monday, November 03
- Fed's Daly says she backed latest rate cut, open to another one in December, Published on Monday, November 03
The prompt for this was: federal reserve news today
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