Jerome Powell

WASHINGTON — Federal Reserve officials are expected to keep their short-term interest rate unchanged Wednesday after three cuts last year, ignoring huge pressure for lower borrowing costs from the White House in favor of waiting to see how the economy evolves. The central bank’s rate reductions last year were intended to shore up the economy and prevent a sharper deterioration in the job market, after hiring slowed to a near-crawl in the wake of President Donald Trump’s sweeping tariffs last April. Yet there are signs that unemployment has stabilized and the economy could be picking up. At the same time, inflation remains stubbornly above the Fed’s 2% target. All those trends argue for keeping rates where they are. A key issue that Chair Jerome Powell will likely address at his news conference Wednesday is how long the Fed will remain on hold. The rate-setting committee remains split.