Watch live: Federal Reserve expected to announce rate cut

The Federal Reserve is expected by economic forecasters to lower its key interest rate again Wednesday despite a recent acceleration of inflation and a solid economy. The estimated quarter-point rate cut would mark the Fed’s third straight reduction and it would bring its benchmark short-term rate to a range of 4.25% to 4.5%. Fed officials are slicing the rate because inflation has eased significantly since they hiked it to a 23-year high of 5.25% to 5.5% in 2022 and 2023 to fight a pandemic-related price surge. The central bank trims rates to lower borrowing costs and stimulate growth or dig the economy out of recession. It raises rates to tame inflation by cooling the economy and job market.