(WASHINGTON) — The Federal Reserve is preparing for a crucial vote this week on the nation’s benchmark interest rate amid slow hiring and rising inflation. Twelve policymakers will meet to discuss the rate, but two members face uncertainty about their participation just days before the announcement.

President Donald Trump has recently sought to reshape the Fed by attempting to remove one board member and secure Senate confirmation for another. This push comes after months of Trump criticizing the central bank and its Chair, Jerome Powell, for not lowering interest rates as he requested.

The Fed's meeting on Wednesday is expected to result in the first rate cut since December. In a social media post on Monday, Trump reiterated his demand for action, stating that Powell “MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND.”

Trump's attempt to fire board member Lisa Cook has led to legal challenges. Cook has filed a lawsuit against Trump, claiming that her removal violates her legal protections as a federal employee. Trump alleges that Cook was involved in mortgage fraud, which she denies. Federal law permits the president to remove a Fed board member “for cause,” but no president has ever attempted such a removal in the Fed's 112-year history.

A federal judge recently issued a preliminary injunction allowing Cook to remain in her position while her lawsuit is pending. The Trump administration has since requested an appeals court to expedite Cook's removal before the interest rate vote. In response, Cook has asked the court to deny this request.

The controversy surrounding Cook intensified when Bill Pulte, director of the Federal Housing Finance Agency, accused her of falsifying documents to secure better loan terms. Cook stated that she learned about these allegations through the media and expressed her determination to address any legitimate questions regarding her financial history.

In addition to the turmoil surrounding Cook, Trump is seeking Senate confirmation for Stephen Miran, a top economic advisor at the White House. The Senate is expected to vote on Miran’s nomination soon. Miran has pledged to uphold the independence of the central bank but indicated he would not resign from his current position if confirmed.

Miran's nomination fills a vacancy left by the early retirement of Fed board member Adrianna Kugler. If confirmed, he plans to take an unpaid leave from his White House role, following legal advice, as his term on the Fed board would last four months.

The current federal funds rate is between 4.25% and 4.5%, reflecting a significant increase made in response to inflation during the pandemic. However, Powell has suggested that the Fed may consider a rate cut, prioritizing concerns about slow employment growth over inflation. Market sentiment indicates a 96% chance of a quarter-point rate cut this week, according to the CME FedWatch Tool.