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EN
Federal Reserve cuts key rate by quarter-point and signals two more cuts this year
['Deeandra Michel']
WCCB CharlotteWCCB Charlotte
WASHINGTON (AP) — With the Federal Reserve widely expected Wednesday to reduce its key interest rate by a quarter-point to about 4.1%, economists and Wall Street investors will be looking for signals about next steps: How deeply might the Fed cut in the next few months?
A rate cut Wednesday would be the first in nine months.
But with businesses pulling back on hiring, the economic case for a rate cut — which can spur more borrowing and spending — is stronger.
Five reductions would bring the Fed’s key rate down to just above 3%.
If Fed officials began to worry the economy would slip into recession, they would likely cut rates more quickly.
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'economy'
'fed'
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