Federal Reserve set to cut rate but may signal a pause to come

WASHINGTON (AP) — The Federal Reserve faces an unusually contentious meeting this week that will test Chair Jerome Powell’s ability to corral the necessary support from fellow policymakers for a third straight interest rate cut.

The Fed’s 19-member rate-setting committee is sharply divided over whether to lower borrowing costs again. The divisions have been exacerbated by the convoluted nature of the economy: Inflation remains elevated , which would typically lead the Fed to keep its key rate unchanged, while hiring is weak and the unemployment rate has risen , which often leads to rate cuts.

Some economists expect three Fed officials could vote against the quarter-point cut that Powell is likely to support at the Dec. 9-10 meeting, which would be the most dissenting votes in s