Markets brace as Fed begins December FOMC meeting

Tuesday, December 09, 2025 at 14:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

December 9, 2025 marked the start of the Federal Open Market Committee’s (FOMC) final scheduled policy meeting of the year, spanning into December 10. Investors widely anticipated a quarter-percentage-point reduction in the federal funds rate to a 3.50–3.75% target range — the third consecutive cut in 2025 — amid weakening labor market data and mixed inflation signals. Futures markets priced in a high probability of this easing move, while traders also weighed forward-guidance language on future cuts and balance-sheet operations. With the U.S. central bank at a pivotal point in its easing cycle, market participants braced for commentary from Fed Chair Jerome Powell, updated economic projections (dot plot), and any signals that could recalibrate expectations for 2026 monetary policy. The meeting’s onset reverberated across global asset classes, influencing Treasury yields, equity futures, and FX positions as traders balanced growth, inflation, and geopolitical risk landscapes.

Overall market impact

Strong neutral market impact - strength score : 95/100

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

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Impacted instruments :

US Treasuries

S&P 500 futures

USD FX

Global equities

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