The Federal Reserve cut short-term interest rates for a third time in 2025. What's next for borrowers and consumers?

Gold prices surged to a record high on Monday, riding on growing expectations of further U.S. interest rate cuts and strong safe-haven demand, with silver also joining the rally to hit an all-time peak.

Federal Reserve policymakers cut interest rates by 25 basis points for the third straight meeting, though their dot plot projections suggest only one interest rate cut expected in 2026.

The latest Fed rate cut has pulled mortgage rates down further from this year's highs, improving affordability.

CNBC, citing White House sources, also reported that Fed Vice Chair Michelle Bowman was no longer a candidate. Jamie Dimon, the chief executive of JPMorgan Chase, said at a private event earlier in December that Warsh would make a “great” chair, even as he added that he respected both Kevins.

The S&P 500 remained on course to eke out weekly gain, as investors continued to anticipate interest-rate cuts from the Federal Reserve next year after assessing jobs and inflation data released earlier this week.

Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday “there’s a lot to like” in the latest consumer price index ​data, and if it can be sustained, it will help open the door for ‌more interest rate cuts next year.