US Fed could make small cut

Australian News.Net
Monday 28th April, 2008

The U.S. Federal Reserve is expected to come out with a small reduction in interest rates this week.

Analysts believe the small rate cut will signal that its rate-cutting cycle is almost over.

Rising global inflation and the Fed's hope that its monetary and fiscal stimulus will shore up the U.S. economy, suggest the central bank is ready for a pause in rate cuts.

Fed Chairman Ben Bernanke has lowered rates in the past months to 2.25 percent.

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