Originally published by the Voice of America (www.voanews.com).
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September 16, 2008

US Central Bank May Cut Key Interest Rate
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http://enews.voanews.com/t?ctl=1E3822B:A6F02AD83191E1600A784F1A160614715C6F54A6CF9DC2CA&
 
Rate cut would stimulate economy and make it easier for customers to
borrow 
The struggling U.S. economy and easing inflation may prompt top
officials of the U.S. central bank to cut interest rates when they meet
Tuesday in Washington. A rate cut would make it easier to borrow the
money businesses need to expand and for customers to get mortgage loans
to buy homes. Central bankers around the world say they are worried that
the current financial crisis will cause banks to stop lending, which
could stall the economy and make the crisis worse. So the Fed and other
central banks have also been making more money available to banks to
ease their concerns and keep the economy going. The Fed has been holding
its benchmark interest rate steady at two percent, and some economists
predict a quarter of a percentage point cut. While the Fed lowers
interest rates to stimulate the economy, it raises them to fight
inflation. But inflation worries eased Tuesday when a government report
from the Labor Department said overall inflation dropped slightly (by
one-tenth of a percent) in August. Some information for this report was
provided by AFP, AP, Reuters and Bloomberg.


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