Fed Cuts 25 bps to 3.75–4.00%; Votes to End QT December 1

The FOMC cut rates by 25 basis points to 3.75–4.00% by a 10-2 vote. Crucially, the Fed also voted to formally end quantitative tightening (QT) — halting all Treasury and MBS runoff — effective December 1, 2025. This ended one of the most significant balance sheet reduction programs in Fed history, which had reduced holdings from a ~$9 trillion peak. Core PCE remained at 2.8% and unemployment at 4.4%.