Federal Reserve Chairman Jerome Powell is hosting a press conference at 2:30 p.m. on Wednesday, during which he is expected to publicly address the first interest rate cuts of the year. The Fed’s interest recommendation currently sits between 4.

To clear things up, here are the main takeaways culled from conversations and research notes from experienced Fed watchers:

The Fed meets eight times a year in regularly scheduled meetings to set U.S. monetary policy. The FOMC sets the target range for the federal funds rate, the interest rate banks use to lend to each other, which influences broader rates that affect consumers, like credit card interest rates.

The US Federal Reserve is widely expected to announce its first interest rate cut of 2025 on September 17 with several participants aiming a quarter percentage point (25 basis points) reduction, bringing the federal funds rate to a range of about 4.

The Federal Reserve's two-day policy-setting meeting begins Tuesday. Policy committee members may be divided on their decision and forecasts.

Markets face their most pivotal week in months as the Federal Reserve's September 17-18 meeting arrives Wednesday afternoon, with Chair Jerome Powell's 2:30pm press conference potentially reshaping the investment landscape following recent economic data showing both employment weakness and persistent inflation concerns.