Washington (CNN) — The Federal Reserve on Wednesday is set to lower borrowing costs again, even as stark divisions persist within the central bank’s powerful rate-setting committee.

Wednesday’s decision will likely emerge as the Fed’s toughest call since at least September 2024, when officials debated

Fed officials are in disagreement over which side of their dual mandate to prioritize: full employment or stable prices. Job growth this year has been unusually weak and several officials have said the situation could get worse if they don’t continue to lower rates. Other officials, however, say the greater risk is that inflation stays stuck above the Fed’s 2% target as President Donald Trump’s widespread tariffs pack a bigger punch.

This month’s meeting also represents Chair Jerome Powel

See Full Page