New Delhi: The US Federal Reserve has kicked off its crucial two-day policy meeting. It will decide whether to change the country’s key interest rates. In October, the Fed trimmed rates by 25 basis points, bringing the federal funds range down to 3.75 per cent–4.00 per cent. With this new decision expected soon, investors around the world are watching closely as any shift in US interest rates can quickly ripple through global markets and impact major economies.
When Will the Fed Announce Its Decision?
The FOMC meeting started on Tuesday, 9 December 2025, and the policy outcome will be declared on Wednesday, 10 December 2025. The Federal Reserve is set to announce its decision at 2 p.m. EDT, which translates to 12:30 a.m. IST on Thursday. This timing is an hour later than usual because of the recent Daylight Saving Time (DST) shift in the US.
What to Expect From Powell’s Address
US Federal Reserve Chair Jerome Powell will speak to the media at a press conference scheduled for 2:30 p.m. EDT on Wednesday. For viewers in India, his remarks will be available at 1:00 a.m. IST on Thursday. Powell’s commentary is expected to shed light on the policy decision as well as the Fed’s broader outlook on the US economy.
Where to Watch the Fed Updates Live
Investors can tune in to Powell’s press conference through the Federal Reserve’s official website or its YouTube channel. Real-time updates, expert commentary, and analysis will also be available on major financial news platforms, along with Mint’s live blog tracking the US Fed’s policy announcement.
What Markets Expect From the December Policy
CME FedWatch data shows that most investors are betting on another rate cut this December, with an 89.6% chance that the Fed will lower rates to 3.50 per cent–3.75 per cent—a drop of 25 basis points. Meanwhile, about 10.4 per cent believe the central bank will keep rates unchanged at 3.75 per cent–4.00 per cent. Even with strong expectations of easing, Fed policymakers remain split as they prepare for the final rate call of 2025.
Brokerage firm Nomura also expects a 25-basis-point cut in this week’s meeting, in line with the global trend of central banks moving away from prolonged high-rate policies. Looking ahead to 2026, Nomura predicts two more 25-basis-point cuts, one in June and another in September—likely under a new Federal Reserve chair.
Key Challenges Facing the Fed
The Federal Reserve is navigating a tricky environment as it heads into its December decision. Due to the recent government shutdown, crucial economic indicators such as the October CPI and the latest jobs report haven’t been released, leaving policymakers with limited data. While concerns about a weakening labor market could push the Fed toward another rate cut, inflation is still running above its 2 per cent target, making the decision more complicated. This is why Jerome Powell’s remarks will be closely watched for clues about the committee’s thinking.
If the Fed opts for a 25-basis-point cut in December, the federal funds rate would fall to the 3.50 per cent–3.75 per cent range.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
