Officials in some countries started cutting rates last year, but others, including those in Europe and the United States, have taken a more cautious approach.

Some forecasters expect the Fed to cut interest rates by a quarter-point Wednesday. Most, however, expect a half-point reduction. The CME FedWatch forecast tracker favored a half-point cut by a 55-45 margin at midday. (Earlier Wednesday, forecasters rated the probability of a half-point reduction even higher.)

What Do Fed Rate Cuts Do? The Fed only officially controls the federal funds rate, which determines the interest charged in overnight cash reserve transactions between banks. But