The Federal Reserve's policymakers are widely expected to cut its benchmark rate by 25 basis points to 4.00%-4.25% on Wednesday, its first cut since last December, in response to a softening labor market.

"This ongoing gap between market and Fed expectations means that some risk of upward pressure on mortgage rates remains, but for now, consumers have already benefited from the drop in mortgage rates that has brought mortgage rates below 6.5% for the first time in nearly a year and is likely to continue at least through this week."

The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation’s

Officials penciled in two more reductions this year following months of intense pressure from the White House to slash borrowing costs.

Officials are projected to lower borrowing costs on Wednesday for the first time in 2025, with a quarter-point reduction seen as the most likely decision. Trading flows this week linked to the Secured Overnight Financing Rate,

The early read on the September policy meeting was that chairman Jerome Powell retains the ability to “muster majority support” for his positions.

Chicago financial executives said the Fed's independence is paramount as the central bank considers this week whether to cut interest rates for the first time in 2025.

The Federal Reserve cut interest rates by 0.25 percent. The Fed says economic uncertainty remains elevated and higher tariffs have started to push up prices on some goods. Bloomberg News Anchor & Correspondent David Gura,