Federal Reserve policymakers are expected to cut interest rate by a half-point, pushing the federal funds rate down to 1 percent, as they wrap up a two-day meeting Wednesday.
The worst financial crisis in 70 years has forced the Fed to employ all the weapons in its arsenal - including cutting interest rates to near historic lows - to try to keep the country from plunging into a deep recession.
A new cut would put the Fed's target for the interest banks charge each other on overnight lows down at level last seen during a 12-month period from June 2003 to June 2004. Before that period, the funds rate had not been that low in 45 years, since Dwight Eisenhower was president.
Economists believe the Fed is prepared to cut rates that low because of the rising fears that the financial turmoil of the past two months is raising the specter of a deep and prolonged recession.
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