Fed set to cut interest rates

WASHINGTON: Policymakers at the US Federal Reserve will wrap up a two-day meeting on Wednesday that was expected to result in a 13th drop in interest rates designed to light a fire under a flagging recovery.
The meeting, aimed partly at preparing Federal Reserve chairman Alan Greenspan for semi-annual economic testimony to Congress next month, will also discuss the risk of price deflation, the Federal Reserve chief has said.Top Wall Street dealers last week were anticipating a reduction in the current 1.25 per cent. Reuters