The Federal Reserve's policy-setting committee convened Monday in Washington for a two-day meeting. Economists at Goldman Sachs and JPMorgan expect the committee to approve a quarter-point interest rate cut, marking the central bank's first reduction of 2026.

The meeting followed a weak August employment report showing slowing hiring. Chair Jerome Powell had signaled at the Jackson Hole symposium in August that risks to the labor market were rising, strengthening the case among some committee members for easing monetary policy.

President Donald Trump has repeatedly demanded that the Fed slash rates, attacking Powell by name in recent Truth Social posts and calling for reductions far larger than a quarter point. The central bank has insisted its decisions remain independent of political pressure.

Markets have largely priced in a 25-basis-point cut, according to CME Group's FedWatch tool, which tracks federal funds futures. Analysts will scrutinize the committee's updated economic projections and Powell's press conference on Wednesday for guidance on further reductions this year.

The outcome carries political weight ahead of the November midterms, in which Republican super PACs backed by Trump and Elon Musk have begun heavy spending. Lower borrowing costs could ease voter anxiety over housing and credit before Election Day.