Federal Reserve expected to cut interest rates as inflation and job growth lag

(ABC36 NEWS NOW) – The Federal Reserve is expected to lower interest rates on Wednesday, a move that could mean lower borrowing costs for Americans taking out loans.

The anticipated rate cut comes as the U.S. economy continues to face persistent inflation and slowing job growth. Inflation has remained elevated in part due to widespread tariffs imposed by the Trump administration, keeping levels above the Fed’s 2% target.

Officials say the decision aims to provide relief to consumers and support economic stability as the nation navigates ongoing financial pressures.