Watch: Jerome Powell remarks on Fed interest rate announcement

The highest interest rates in a generation may finally ease Wednesday, as the Federal Reserve meets to consider the first rate cut in four years, potentially ushering in a new era of lower borrowing costs for anyone seeking a new home, car or credit card.

In recent comments, Fed Chair Jerome Powell signaled that "the time has come" for an interest rate cut at the group's September meeting, which concludes today. The looming question is, how big of a cut? Forecasts are split between a reduction of one quarter of a percent and one half to the benchmark federal funds rate, which stands at a 23-year high.

The mother of all interest rates is actually a range, and it has sat at 5.25% to 5.5% since July 2023, following a campaign of rate hikes to combat surging inflation. In response, rates on mortgages, car loans and credit cards have reached historic highs.

The two-day Fed meeting ends at 2 p.m. with a rate announcement. Powell will hold a press conference at 2:30 p.m. The financial world will be watching.