"The Federal Reserve is again expected to lower its benchmark interest rate by a quarter percentage point Wednesday, in an effort to support a weakening job market. But stubborn inflation and delayed economic data could complicate the Fed's decision, leading to more-than-usual disagreement within the rate-setting committee. A rate cut could make it slightly cheaper to borrow money to buy a car, expand a business or carry a balance on a credit card."
"Inflation is still well above the Fed's target, which would ordinarily call for keeping interest rates elevated. But unemployment has also been creeping up, which would typically point toward lower rates. Fed policymakers are divided on which of those problems is more urgent. The decision is also clouded by a lack of timely data as a result of the six-week government shutdown."
The Federal Reserve is expected to lower its benchmark interest rate by a quarter percentage point to support a weakening job market. Inflation remains well above the Fed's target, arguing for higher rates, while unemployment has been creeping up, pointing toward lower rates and creating competing pressures among policymakers. Recent rate cuts at the last two meetings were not unanimous, reflecting that split. Timely economic data are limited because the six-week government shutdown delayed October and November readings, forcing reliance on September data showing 2.8% annual inflation (Fed-preferred) and 4.4% unemployment. Investors expect a majority to back a quarter-point cut, and officials will update next-year rate projections.
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