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Here are the five big takeaways from Wednesday's Fed rate decision

The Federal Reserve on Wednesday approved a much-anticipated quarter percentage point interest rate cut at a meeting that was packed with intrigue and surprises. Here's a look at five top takeaways:

"Given the lack of consensus on the Committee displayed today, along with the slow release of traditional economic data, and the arrival of a new Fed Chair early in 2026, we think the Fed is likely to remain on hold for a while. Still, continued softness in some of the labor indicators can certainly bring another 25 bps cut into the mix for January." — Rick Rieder, head of fixed income at BlackRock and a reported finalist to succeed Powell

Fed cuts interest rates again: What's next for mortgages, credit cards

Cantankerous and increasingly cautious consumers — perhaps put on edge by seemingly shrinking paychecks, a weaker job market and stubbornly high prices — gave the Federal Reserve more room to cut interest rates for a third time in 2025.

On Wednesday, Dec. 10, the nation's central bank cut short-term interest rates by a quarter percentage point. The Fed's December rate cut drove the short-term federal funds rate to a target range of 3.5% to 3.75%.

The Fed noted in its statement that "job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments."

The decision was not unanimous. "Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting," according to the Fed's statement.

‘Be careful what you wish for’: Top economist warns any additional interest rate cuts after today would signal the economy is slipping into danger

Claudia Sahm thinks investors should rethink what they’re salivating for.

The Federal Reserve is likely to deliver its third interest rate cut of the year on Wednesday, a move widely understood to be insurance against the bottom completely falling out of the labor market. But to Sahm—a former Fed economist, recession-indicator architect, and one of the central bank’s most closely watched outside interpreters—the more consequential question isn’t what the Fed does on Wednesday. It’s what additional cuts would mean.

“If the [Jerome] Powell Fed ends up doing a lot more cuts,” she told Fortune ahead of the decision, “then we probably don’t have a good economy. Be careful what you wish for.”

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