Fed expected to cut interest rates, but less than Trump wants

The Federal Reserve on Wednesday will set the level of its benchmark interest rate , adjusting a major policy lever for the first time since a government shutdown sharply restricted the release of gold-standard federal data about the economy. In a rare exception, the U.S. government issued an inflation report last week showing a continued acceleration of price increases, which may complicate the Fed’s effort to revive a flagging labor market. In recent months, inflation has picked up while hiring has slowed, posing a risk of an economic double-whammy known as " stagflation ." The economic conditions have put the Federal Reserve in a bind. If the Fed raises interest rates as a means of protecting against tariff-induced inflation, it risks tipping the economy into a downturn. On the other ha