The Fed is widely expected to cut its benchmark interest rate on Wednesday, though it remains unclear how aggressive the central bank will be as it starts easing policy for the first time in four years.

In 2022, when the Fed realized that it had been late in addressing the inflation surge, it raised interest rates in twenty-five, fifty, or even seventy-five-basis-point increments to regain inflation control.

The consumer price index (CPI) in the US, a key gauge of inflation, dropped to 2.5 percent in August, which sets the stage for the Federal Reserve, the country's central bank, to possibly start reducing interest rates at its next meeting on September 17-18.

Oakmark Funds portfolio manager and CIO Bill Nygren gives his market analysis as stocks climb on rate-cut optimism on 'Barron's Roundtable.'

As inflation continues to cool, the Federal Reserve could finally cut interest rates during its September meeting. It could provide a window of opportunity for buyers looking to lock in a more affordable mortgage.