Federal Reserve Holds Interest Rates Steady December 2025

The Federal Open Market Committee (FOMC) is responsible for setting U.S. monetary policy, with a primary tool being the target range for the federal funds rate. This rate influences borrowing costs throughout the economy.

Decisions are made at scheduled meetings, with the December 2025 meeting being a key juncture for assessing economic conditions and adjusting policy accordingly. Market participants closely monitor these meetings for signals about the future path of interest rates, which can impact inflation, employment, and overall economic growth. The FOMC's statements following these meetings provide crucial details on their policy decisions and economic outlook, as noted on the official FOMC calendar Federal Reserve.