Fed faces economic uncertainty and political pressure as it decides whether to cut rates

"In a sign of how unusual this week's Federal Reserve meeting is, the decision it will make on interest rates - usually the main event - is just one of the key unknowns to be resolved when officials gather Tuesday and Wednesday. For now, it's not even clear who will be there. The meeting will likely include Lisa Cook, an embattled governor, unless an appeals court or the Supreme Court rules in favor of an effort by President Donald Trump to remove her from office."

"So a key question for the Fed is: Do they worry more about people who are out of work and struggling to find jobs, or do they focus more on the struggles many Americans face in keeping up with rising costs for groceries and other items? The Fed's mandate from Congress requires it to seek both stable prices and full employment."

The Federal Reserve meeting is unusually uncertain because the interest-rate decision is only one of several unresolved issues and attendance may change depending on court rulings. Lisa Cook's participation could be affected by a legal effort to remove her, and Stephen Miran's nomination leaves another seat in flux. The U.S. economy shows sharply slower hiring and persistently high inflation. The Fed must balance its dual mandate of stable prices and full employment. Fed officials have signaled greater concern about weak hiring, prompting investor expectations of a quarter-point cut to about 4.1%. Still, stubborn inflation may force cautious, limited reductions, and quarterly projections are expected to show one or two cuts this year and several next.

Read at ABC7 Los Angeles