The Federal Reserve will announce its December interest rate decision at 2 p.m. ET Wednesday. Business Insider will be covering developments live throughout the day, including economists' insights, market moves, and what it means for your wallet.
Check back here for updates — and tune into our live Q&A with reporters this afternoon at 4 p.m. ET.
2025 was a rough year for job seekersA 'now hiring' sign is displayed in a business window in Manhattan
Spencer Platt/Getty Images
Powell has said the Fed's cautious strategy this year stems from uncertainty over President Donald Trump's fast-changing tariff policies and stubborn inflation rates. The job market, meanwhile, has had a rocky 2025.
Business Insider has heard from frustrated job seekers at all levels of the career ladder, particularly those feeling pushed out of white collar roles. This past summer, the number of Americans looking for work eclipsed the number of vacancies, though the unemployment rate itself is still relatively low.
"There is no risk-free path for policy as we navigate this tension between our employment and inflation goals," Powell said in October, adding, "Ultimately, lower rates will support more demand, and that'll support hiring over time. And, of course, we also have to be careful about this."
The current economic picture
The Fed's dual mandate is to keep America's prices stable and the labor market healthy. These two goals have been challenging to balance this year: higher interest rates can help curb inflation but risk cooling down an already chilly labor market.
The Fed is also missing key pieces of data due to the government shutdown. The Bureau of Labor Statistics canceled the October consumer price index and unemployment rate releases, and the November jobs report and inflation data won't be released in time for today's meeting. December's decision will be more difficult without this information.
All is calm in key markets
US stock futures are virtually unmoved as of just before 6:20 a.m. ET. Futures for all three of the Dow Jones, the Nasdaq, and the S&P 500 have moved less than 0.1% lower so far in this morning's trading.
There's a little more movement in European stocks, though nothing too drastic. Britain's benchmark, the FTSE 100, is up 0.2% on the day to 9,660, while Germany's DAX is 0.5% lower.
Away from stocks, the US dollar index is around 0.4% lower. The gold price is 0.3% down at roughly $4,200 per ounce.
Today is the Fed's last decision of 2025
Fed leaders have kept monetary policy moderately restrictive in recent months, holding rates steady until September before introducing two quarter-point cuts.
Chair Jerome Powell said in the last meeting that a rate change in December is "not a foregone conclusion, far from it" and "policy is not on a preset course," though on Wednesday morning, CME FedWatch is showing a roughly 90% chance of another quarter-point reduction.
Investors and consumers are hopeful for more cuts. Americans could see more affordable mortgage, auto, and credit card rates in the new year, and businesses would be able to borrow money more easily — a move that could juice the sluggish job market.
