December 9–10 · Published December 30, 2025
Jerome H. Powell
December 9–10, 2025 FOMC Minutes
Our reading
The minutes are consistent with the statement because both documents describe the same economic conditions—moderate growth, slowed job gains, an edging-up unemployment rate, and elevated inflation—and both justify the decision to lower the federal funds rate by 1/4 percentage point to 3-1/2 to 3-3/4 percent, citing a shift in the balance of risks toward increased downside risks to employment.
Our reading compares the minutes of the December 9–10 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Michael S. Barr
- Michelle W. Bowman
- Susan M. Collins
- Lisa D. Cook
- Austan D. Goolsbee ↑ dissented
- Preferred no change to the target range for the federal funds rate at this meeting
- Philip N. Jefferson
- Stephen I. Miran ↓ dissented
- Preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting
- Alberto G. Musalem
- Jerome H. Powell
- Jeffrey R. Schmid ↑ dissented
- Preferred no change to the target range for the federal funds rate at this meeting
- Christopher J. Waller
- John C. Williams
From the minutes
FOMC minutes
Voting for this action: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Philip N. Jefferson; Alberto G. Musalem; and Christopher J. Waller.
Voting against this action: Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting.
Consistent with the Committee's decision to lower the target range for the federal funds rate to 3-1/2 to 3-3/4* percent, the Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on reserve balances to 3.65 percent, effective December 11, 2025. The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point decrease in the primary credit rate to 3.75 percent, effective December 11, 2025.2
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, January 27–28, 2026. The meeting adjourned at 10:30 a.m. on December 10, 2025.
What changed from the previous meeting’s minutes
- The target range was lowered to 3-1/2 to 3-3/4 percent from 3-3/4 to 4 percent.
- Three members voted against the decision, up from two, with Goolsbee joining dissenters preferring no change.
- The FOMC decided to initiate purchases of shorter-term Treasury securities to maintain ample reserves.
- The aggregate limit on standing repo operations was removed.
- The unemployment rate reference was updated from August to September.
- The statement changed to "extent and timing" of additional adjustments from "additional adjustments."
Summary generated automatically from the two documents.