A divided U.S. Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday (October 29, 2025) and announced it would restart limited purchases of Treasury securities after money markets showed signs that liquidity was becoming scarce, a condition the U.S. central bank has pledged to avoid.

The rate cut, which included a nod to the data limits the Fed faces during the current federal government shutdown, drew dissents from two policymakers, with Governor Stephen Miran again calling for a deeper reduction in borrowing costs and Kansas City Fed President Jeffrey Schmid favouring no cut at all, given ongoing inflation .

The balance sheet decision will keep the total amount of the central bank’s holdings steady on a month-to-month basis as of December 1, but shift i

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