The Fed is set to cut its benchmark rate, but consumers might not benefit anytime soon. Here’s why

U.S. consumers may only feel slight relief from still high borrowing costs.

Federal Reserve officials on Wednesday will likely signal a slower pace of interest rate cuts next year compared with the past few months, which would mean that Americans might enjoy only slight relief from still-high borrowing costs for mortgages, auto loans and credit cards.

The Fed is set to announce a quarter-point cut to its benchmark rate, from about 4.6% to roughly 4.3%. The latest move would follow...