Fed may cut rates

The Federal Open Market Committee, which meets Tuesday, is widely expected to act in the face of the worst housing slump in decades, which has led to rising mortgage defaults and a tightening of credit standards that threatens the overall economy. A growing number of analysts say they expect the FOMC, which has held its federal funds rate at 5.25 per cent since June 2006, to cut the benchmark rate by 25 to 50 basis points.