Stephen Miran, a top White House economist who was confirmed by the Senate with unusual speed late Monday, was sworn in Tuesday as a member of the Fed's board of governors. He will vote on the Fed's interest rate decision on Wednesday, when the central bank is expected to reduce its key rate by a quarter-point. Miran may dissent in favor of a larger cut.

Also attending the meeting is Fed governor Lisa Cook, whom the Trump administration has sought to fire in an unprecedented attempt to reshape the Fed, which historically is considered independent of day-to-day politics. An appeals court late Monday upheld an earlier ruling that the firing violated Cook's due process rights. A lower court had earlier also ruled that President Donald Trump did not provide sufficient "cause" to remove Cook.

The Fed on Wednesday is widely expected to cut its key rate by a quarter point to about 4.1%, which would be the first reduction since last December. The central bank reduced rates three times last year because, like now, it worried that job gains were weakening and unemployment was rising.

Some borrowing costs, such as mortgage rates, have already declined in anticipation that the Fed will start cutting rates this week. Should the Fed reduce borrowing costs again at its next meetings in October and December, rates on mortgages, car loans, and credit cards could decline further.