Will the Fed cut interest rates? Here's what to expect at Wednesday's meeting.

Key Points:

• The Federal Reserve is expected to keep interest rates steady at 3.5% to 3.75% during its upcoming meeting on Wednesday, marking the third consecutive pause amid rising inflation and a mixed job market.
• Inflation has surged to 3.3% annually as of March, driven by factors including the Iran war and energy price hikes, complicating the Fed's efforts to balance price stability with employment.
• Jerome Powell is likely to preside over his final Fed meeting as chair before stepping down on May 15, with Kevin Warsh anticipated to succeed him following the conclusion of a probe into Powell's office renovations.
• While some economists predict one rate cut later in 2026, opinions vary, with some expecting no cuts this year due to persistent inflationary pressures and economic uncertainty.
• The Fed's decision will be announced at 2 p.m. ET on Wednesday, followed by a press conference where Powell will discuss the economic outlook and the central bank's policy stance.