Comparison of changes in the full text of the Federal Reserve's October meeting statement

Comparison of changes in the full text of the Federal Reserve's October meeting statement

On Wednesday, October 29 local time, the Federal Reserve lowered interest rates by 25 basis points as expected, reducing the target range for the federal funds rate to 3.75%–4.00%. In this statement, the Fed emphasized “available indicators” from the outset, rather than its usual mention of “recent indicators,” to reflect the recent lack of U.S. economic data.

The Fed’s statement regarding the economic outlook showed some changes compared to the September meeting:

  • The Fed’s statement that “economic activity growth slowed in the first half of the year” was changed to “economic activity expanded at a moderate pace.”
  • The Fed’s comments on the labor market remained largely consistent with previous statements, but added a series of time-point descriptions, including: employment growth has slowed since the beginning of this year; the description of the unemployment rate specifically refers to “as of August this year”; and the mention that the downside risks to employment have risen in recent months.
  • Comments on inflation were largely the same as in July, while emphasizing that inflation has risen compared to the beginning of the year.
  • The Fed added a new statement indicating that recent indicators are consistent with these changes.

As in the July meeting, the Fed said that, considering the change in risk balance, the decision was made at this meeting to lower interest rates by 25 basis points, bringing the benchmark rate down to 3.75%-4%. In the statement, the Fed officially announced an end to quantitative tightening (QT), saying it has decided to stop reducing its holdings of securities as of December 1.

At this meeting, Stephen I. Miran, a governor appointed last month by President Trump, cast another dissenting vote—as he did in September—believing that the rate cut should have been 50 basis points rather than 25. In addition, Kansas City Fed President Jeffrey R. Schmid also cast a dissenting vote, preferring to keep the target range unchanged at this meeting. The two dissenting votes, headed in opposite directions, highlight internal policy divisions within the Fed.

Full Statement Translation

The full statement translation is as follows. Text in black is identical to the September 2025 FOMC statement, red text marks additions in October 2025, and terms struck through in blue text are deletions from the September statement (please cite if reprinting):

(recent)available indicators show that (first half of the year) economic activity (growth slowed)expanded at a moderate pace. Since the beginning of this year, employment growth has slowed, the unemployment rate has edged up but as of August remained at a low level; recent indicators are consistent with these changes. Inflation has risen relative to the beginning of the year and remains somewhat elevated.

The Committee aims to promote maximum employment and 2% inflation in the long run. Uncertainty about the economic outlook remains elevated. The Committee is closely monitoring factors that could affect its dual mandate and judges that downside risks to employment have increased in recent months.

To support its goals, and in consideration of the changes in risk balance, the Committee decided to lower the target range for the federal funds rate by 0.25 percentage points to (4%)3.75% to (4.25%)4%. In assessing any further adjustments to the target range for the federal funds rate, the Committee will carefully evaluate future data, evolving outlook, and risk balance. The Committee (will continue to reduce its holdings of U.S. Treasuries, agency debt, and agency mortgage-backed securities)has decided to end the reduction of its securities holdings as of December 1. The Committee is firmly committed to supporting maximum employment and returning inflation to its 2% target.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor how incoming information affects the economic outlook. Should risks emerge that could impede the achievement of its goals, the Committee is prepared to adjust its stance of monetary policy as appropriate. The Committee’s assessment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international conditions.

Voting in favor of this monetary policy action were: 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(, Jeffrey R. Schmid) and Christopher J. Waller. Voting against this action were Stephen I. Miran, who favored lowering the target range for the federal funds rate by 0.5 percentage points at this meeting, and Jeffrey R. Schmid, who preferred to keep the target range unchanged at this meeting.

 

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