What changes are there in the full comparison of the Federal Reserve's December meeting statement?

On December 10th, local time, the Federal Reserve lowered interest rates by 25 basis points as expected, bringing the target range for the federal funds rate down to 3.50% to 3.75%. In this statement, the Federal Reserve made slight adjustments to its description of the economic outlook compared to the October meeting, but the changes were minimal:

• The Federal Reserve's description of the unemployment rate changed from "the unemployment rate has risen slightly but remained low as of August" in the last statement to "the unemployment rate has risen as of September," which not only updates the timing but also removes the description of remaining low.
• The Federal Reserve recently mentioned that "more" recent indicators are consistent with these changes, reinforcing that their latest information aligns with previous assessments.

Regarding future adjustments to the target range for the federal funds rate, the Federal Reserve added the phrase "magnitude and timing" in the December statement.

An important change in this statement is that the Federal Reserve added the statement "the committee believes that reserve balances have fallen to adequate levels and will purchase short-term U.S. Treasury securities as needed to maintain a continued adequate supply of reserves." This is consistent with the Federal Reserve's announcement on the same day to purchase $40 billion in short-term U.S. Treasuries. Federal Reserve Chairman Jerome Powell stated at the press conference that the scale of U.S. Treasury purchases may remain at a high level in the coming months.

It is noteworthy that there were three dissenting votes at this meeting, one more than at the October meeting, highlighting divisions within the Federal Reserve:

• Federal Reserve Governor Stephen Moore, appointed by President Trump in September, cast a dissenting vote again, as he did in the September and October meetings, believing that rates should be cut by 50 basis points instead of 25.
• Kansas City Fed President Esther George also cast a dissenting vote again, preferring to keep the target range for rates unchanged, as she did in the October meeting.
• Chicago Fed President Charles Evans joined George, also preferring to keep the target range for rates unchanged.

Full Statement Translation

The full statement translation is as follows. The black text is the same as the October 2025 FOMC meeting statement, the red text is the new part from December 2025, and the blue text in parentheses indicates the wording deleted from the October statement (please indicate the source when reprinting):

Available indicators suggest that economic activity is expanding at a moderate pace. Job growth has slowed this year, and the unemployment rate has risen as of September (slightly) (but remained low as of August); more recent indicators are consistent with these changes. Inflation has risen from earlier this year and remains slightly elevated.

The committee seeks to achieve maximum employment and a 2% inflation rate over the long term. Uncertainty regarding the economic outlook remains elevated. The committee is closely monitoring risk factors that may affect its dual mandate and assesses that the downside risks to employment have increased in recent months.

To support its objectives and in light of changes in the balance of risks, the committee decided to lower the target range for the federal funds rate by 0.25 percentage points to 3.50% (3.75%) to 3.75% (4%). In considering the magnitude and timing of further adjustments to the target range for the federal funds rate, the committee will carefully assess future data, evolving outlooks, and the balance of risks. (The committee decided to end its reduction of the total amount of securities held on December 1.) The committee is firmly committed to maximizing employment and bringing inflation back to its target of 2%.

In assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of the latest information on the economic outlook. Should risks arise that could hinder the achievement of its goals, the committee will be prepared to adjust its monetary policy stance as deemed necessary. The committee's assessment will reference a wide range of information, including labor market conditions, inflationary pressures and expectations, as well as data on changes in financial and international conditions.

The committee believes that reserve balances have fallen to adequate levels and will purchase short-term U.S. Treasury securities as needed to maintain a continued adequate supply of reserves.

The voters in favor of this monetary policy include: FOMC Chair Jerome H. Powell, Vice Chair John C. Williams, Michael S. Barr, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem, and Christopher J. Waller. Those voting against this measure include Stephen I. Miran, who favored a 0.5 percentage point reduction in the federal funds rate target range at this meeting, as well as Austan D. Goolsbee and Jeffrey R. Schmid, who preferred to maintain the federal funds rate target range unchanged at this meeting