The Federal Reserve has announced a reduction in its interest rate ceiling to 4.00%, aligning with market expectations and down from the previous 4.25%. This 25 basis point cut was detailed in the Federal Open Market Committee (FOMC) statement. Additionally, the Fed will conclude its balance sheet reduction on December 1, 2025, and will roll over all maturing U.S. Treasury principal payments at auction. Furthermore, it plans to reinvest principal redemptions from agency debt and mortgage-backed securities into short-term Treasury bills.