It’s a pivotal week for the US economy, with the Federal Reserve expected to cut interest rates for the first time since 2020. The move would mark a major milestone both for the central bank’s long fight with inflation and for Americans battling a higher cost of living for the past two years.

The Federal Reserve is likely to cut rates when it meets this week. While interest rates will respond immediately, others will take time.

The Federal Reserve is set to cut borrowing costs at its two-day meeting that ends Wednesday. The goal: preserve a solid job market now that price pressures have cooled. The decision over whether to cut the Fed’s benchmark interest rate,