The US Fed­eral Reserve is this week expec­ted to make its first interest rate cut this year, as it faces fierce pres­sure from Don­ald Trump and a split over whether the weak­en­ing jobs mar­ket can counter the infla­tion­ary risk posed by the US pres­id­ent’s tar­iffs.

Investors widely expect rate-set­ters to lower bor­row­ing costs by a quarter of a per­cent­age point at Wed­nes­day’s vote. After cut­ting rates by 100 basis points last year, the Fed has kept them at a 4.25-4.5 per cent range since Decem­ber.

But poli­cy­makers are divided over how quick and deep the cuts should be, and Fed chair Jay Pow­ell has faced cri­ti­cism from Trump, who has called on him to resign and labelled him a “numb­skull” over his reluct­ance to cut rates.

The US pres­id­ent rat­cheted up his attacks last month when he tried to fire Fed gov­ernor Lisa Cook over alleg­a­tions of mort­gage fraud.

Cook, who has denied the charges, is suing Trump, claim­ing he does not have the right to dis­miss her.