The Federal Reserve is expected to hold interest rates steady this week following three consecutive reductions, Bloomberg reports. The decision will be announced at 2 p.m. Wednesday in Washington, with Chair Jerome Powell speaking 30 minutes later.

The Fed has cut its benchmark rate by 1.75 percentage points since September 2024, bringing it to 3.5–3.75 percent. Policymakers say this level positions the central bank to balance risks to employment and inflation. The jobless rate fell to 4.4 percent in December from 4.5 percent, while inflation remains above the 2 percent target.

Powell’s press conference comes days after the Supreme Court heard arguments on the attempted removal of a Fed governor and is his first since DOJ subpoenas prompted concerns over central bank independence, Bloomberg notes. He is expected to face questions on political pressure and his post-term plans in May.

A rate hold is likely to gain broad support after previous contentious cuts. Analysts Bloomberg cited say the pause allows officials to reassess future reductions. Tim Duy, chief economist at SGH Macro Advisors, said the Fed can “take a breather and reassess if the data changes.”

Opposition may come from Governor Stephen Miran, who dissented in favor of deeper cuts, and Michelle Bowman, who advocates readiness to lower rates. Others, including Governor Christopher Waller, appear comfortable holding steady despite inflation above target.

Four regional Fed presidents rotate into voting roles this week. Cleveland’s Beth Hammack and Dallas’s Lorie Logan are focused on inflation risks; Philadelphia’s Anna Paulson prioritizes the labor market; Minneapolis’s Neel Kashkari backs a rate hold.

No new economic projections will be released. Investors will watch Powell’s comments for clues on the rate path. Karim Basta, chief economist at III Capital Management, said Powell may signal rates are “in a good place for now” while monitoring fiscal stimulus and tariff developments.