First interest rate cut in 4 years likely on the horizon as the Federal Reserve meets

With the end of their two-year fight against inflation in sight, Federal Reserve officials on Wednesday are likely to set the stage for the first cut to their key interest rate in four years. That would signify a major shift in policy that could eventually lower borrowing costs for consumers and businesses. Inflation has been falling steadily closer to the Fed’s 2% target for the past several months. And the job market has cooled, with the unemployment rate rising about a half-point this year to 4.1%. Financial market traders have priced in 100% odds that the Fed will reduce its benchmark rate at its Sept. 17-18 meeting, according to futures markets.