US central bank seen announcing first interest rate cut since 2020

WASHINGTON — The Federal Reserve is gearing up to announce its first interest rate cut for more than four years on Wednesday, US time, with policymakers expected to debate how big a move to make less than two months before the US presidential election.

Senior officials at the US central bank including Fed chair Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank's long-term target of two percent, and the labor market continues to cool.