The Federal Reserve is widely expected to announce its first rate cut of the year when it closes its meeting on Wednesday, as concern over the slowing economy and a weaker job market has grown in recent weeks.

The move could provide some immediate relief to Americans who have been struggling with the sky-high borrowing costs for the past few years— especially in the housing market. But there are also potential downsides, experts say, including the risk of further inflation.

What Can We Expect From the Fed's Meeting?

The Fed has kept interest rates unchanged at 4.25-4.5 percent since December.

Despite a recent rise in inflation , weaker-than-expected employment data is likely to push the Fed to cut its benchmark rate when it meets this week—the rate at which banks borrow and le

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