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Fed expected to cut interest rates

Posted: Sunday, November 3, 3:25pm EST

The Federal Reserve is likely to move four-decades-low interest rates even lower this week in the face of rising worry that the struggling economy is headed for rougher times.
A series of recent economic reports has offered indications that the country's sputtering recovery is once again threatening to stall, and that leads many private economists to predict a rate cut when Fed policy-makers meet Wednesday.

"The jury is now in, and the verdict is rate cut,'' said Sherry Cooper, an economist at BMO Financial Group.

Most economists believe the only question mark is whether the Fed will cut its target for the federal funds rate, the interest that banks charge each other, by one-quarter or one-half of a percentage point.