In a significant monetary policy move, the US Federal Reserve announced on Wednesday, October 30, 2025, a reduction in the federal funds rate by 25 basis points, bringing the target range to 3.75 to 4 percent. This decision marks the second interest rate cut by the Fed this year, reflecting its ongoing efforts to navigate economic challenges and stimulate growth. The rate adjustment was made during the Federal Open Market Committee (FOMC) meeting, where policymakers assessed the current economic landscape and determined the necessity of easing monetary conditions. The move is expected to influence borrowing costs across the economy, impacting consumers, businesses, and financial markets. Analysts suggest that the rate cut could provide a boost to economic activity, particularly in sectors sensitive to interest rate changes, such as housing and automotive industries. However, concerns remain about the potential long-term effects on inflation and financial stability. The Fed’s decision underscores its commitment to balancing economic growth with price stability, as it continues to monitor global economic trends and domestic indicators.