NEW YORK () On Wednesday, Federal Reserve Chair Jerome Powell will unveil a much-anticipated decision regarding whether the central bank will reduce its key interest rate for the first time in nine months.

The market overwhelmingly anticipates a rate cut, expected at 2 p.m. EDT, with Powell slated to provide comments shortly thereafter. The CME FedWatch tool indicates a 96% likelihood of a quarter-point reduction, with only a 4% chance for a half-point cut. Analysts suggest the primary question is the extent of the cut and its swift impact on both businesses and consumers.

The Fed has faced continued urging from President Donald Trump amid signs of a cooling jobs market.

Mortgage rates drop to a 3-year low

Mortgage rates have already fallen to a three-year low, with the average 30-year loan now at 6.35%, down from nearly 7% in January.

Experts suggest that a Fed rate cut could further lower borrowing costs, offering advantages to homeowners, credit card users, and car buyers, while also enhancing job opportunities and boosting corporate profits.  

Senate confirms Trump adviser to Fed board 

This week, Stephen Miran, an ally of Trump, was confirmed by the Senate as a member of the Fed’s Board of Governors, giving him a platform to advocate for a more aggressive rate cut.

While Trump aims to build a majority within the Federal Open Market Committee, he encounters opposition. Governors Michelle Bowman and Christopher Waller, both appointed by Trump, might align with Miran. However, the 12-member committee also comprises Powell and Fed Governor Lisa Cook, whose recent dismissal by Trump was unsuccessfully challenged in court.