WASHINGTON (AP) — When will the Federal Reserve start cutting interest rates this year, and by how much? With the economy and inflation running hotter than expected, those questions will seize attention Wednesday, when Fed Chair Jerome Powell begins two days of testimony to Congress. The financial markets are consumed with divining the timing of the Fed's first cut to its benchmark rate, which stands at a 23-year high of about 5.4%.
Fed Chair Powell's testimony to be watched for any hint on rate-cut timing