President Trump’s pressure on Federal Reserve Chair Jerome Powell to lower interest rates will come to a head Wednesday at a pivotal meeting of the central bank.

Trump has sought to reshape the Federal Reserve, pushing to remove board of governors member Lisa Cook and tapping White House economic adviser Stephen Miran to fill a vacancy.

The president has called for a big cut, deeming Powell “too late,” and has been eyeing September as the final chance for the Fed to make a change on interest rates.

Wall Street is fully expecting a rate cut, which is expected to be announced Wednesday afternoon. Futures markets were pricing in a quarter-point cut with a 96 percent probability on Monday afternoon, with a 4 percent chance of a larger half-point cut.

Trump on Sunday again called Powell “incompetent.” He is waiting for the chair’s tenure to come to an end next year and has been evaluating nominees to replace Powell.

“I don't think he can help with cutting. It's perfect for cutting. And the thing that he's hurting most is housing for people, but because we're doing well and everything, energy is way down, groceries are down, everything, almost everything, is way down,” Trump said. “But housing, because of the Fed, is not what it should be, but it's not what it is.”

Inflation rose in August to a 2.9 percent annual increase from 2.7 percent in July, as companies jacked prices.

The increases are noticeable in heavily imported goods and components, which are subject to tariffs under Trump’s new trade regime. Audio equipment is up 12.2 percent from a year ago, furniture is up 9.5 percent, women’s dresses are up 6.2 percent, men’s pants are up 4.2 percent, and motor vehicle parts are up 3.4 percent.

Miran, who would serve simultaneously as chair of the White House Council of Economic Advisers (CEA), was sworn in Tuesday with enough time to vote on the rate decision on Wednesday. The Senate confirmed his nomination Monday........

© The Hill