McLean, Va. (October 29, 2025) — In a move widely telegraphed since the last meeting, the Federal Reserve cut the federal funds rate for the second consecutive meeting, landing at a target range of 3.75% to 4.00%. Newly appointed Fed Governor Stephen Miran dissented in preference of a larger half-point cut for the second consecutive meeting. In contrast to the September meeting, there was a second dissent, however, it was in favor of no change to the policy rate.
“There was a noticeable shadow cast over this meeting by the lack of official statistics due to the ongoing government shutdown, however, Chair Powell was confident that despite the loss of granularity, material shifts in economic conditions will be detected in the data that remains available,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “While there are widely held expectations of another cut coming at the December meeting, Chair Powell cautioned that it was not a foregone conclusion citing the potential need to pause and assess economic conditions as the policy rate moves into the range of estimates for the neutral rate.”
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