The U.S. Federal Reserve announced a 25 basis point cut in interest rates on October 29, 2025, amid concerns about a weakening job market and the impact of a government shutdown on data availability. The decision was made with a 10-2 vote, with two policymakers dissenting—one advocating for a deeper cut and the other opposing any reduction due to ongoing inflation. The Fed also indicated it would restart limited purchases of Treasury securities to ensure liquidity in money markets. Despite the cut, inflation has risen slightly, prompting the Fed to maintain a cautious stance. The policymakers acknowledged the limitations of their decision-making process due to the shutdown, relying on outdated data to assess economic conditions. Market reactions included small gains in U.S. stock indexes and rising Treasury yields, with expectations for further rate cuts in upcoming meetings.