Editorial

15:29 JST, December 12, 2025

The U.S. economy finds itself caught in a dilemma, with concerns over deteriorating employment and a risk of renewed inflation.

Under such circumstances, the U.S. Federal Reserve Board has decided to cut its policy rate by 0.25 percentage points to a range of 3.50%-3.75% per year. This marks the third consecutive rate cut since its September meeting. The Fed signaled it expects only one more rate cut next year.

While the U.S. economy is robust for now, there is significant uncertainty about the future, due in part to U.S. President Donald Trump’s tariff policy. There are also downside risks to employment. The Fed likely decided to cut its rates out of concern for the economy.

However, this is........

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