Federal Reserve cuts benchmark rate 25bp

Wednesday, October 29, 2025 at 20:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

On October 29, 2025 the Federal Open Market Committee reduced its target range for the federal funds rate by 25 basis points. The move was communicated in the official FOMC statement and followed a string of softer inflation and mixed labour data that together convinced enough policymakers to ease policy. Markets reacted quickly: short-dated interest-rate futures priced materially higher odds of further easing, Treasury yields fell sharply at the front end, and equity markets rallied as funding costs declined. While the cut relieved some financial-conditions pressure, the Fed emphasised data dependence and left markets debating the timing and size of additional moves. The policy decision reshaped liquidity and duration positioning across global portfolios and directly affected valuation models for rate-sensitive sectors such as housing, financials and utilities.

Overall market impact

Strong bullish market impact - strength score : 95/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US Treasury yields

Interest rate futures

US equities (growth and cyclicals)

USD FX pairs

Investment-grade and high-yield credit

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