Aiming to rev up an economy that has shifted into low gear, the Federal Reserve is expected to shave US interest rates by a quarter-percentage point today.
Even though there was widespread agreement among analysts that the central bank would decide to cut the key federal funds rate to 3.50 per cent from 3.75 per cent, its seventh cut this year, financial markets kept up their usual vigil ahead of the decision.
Stocks and the US dollar gained yesterday, but Treasury bond prices fell as traders took profits from last week's rally ahead of the meeting.
As well as the rate decision, which will be made public at about 8:15 p.m. (Irish time), investors are eager to see a short statement from the Fed that should shed some light on its thinking about the economy.
Market participants are interested in any language that might indicate the Fed thinks the US economy may have hit bottom in its slump and is starting to recover.
The US economy, which began slowing around the middle of last year, barely grew at all in the second quarter of 2001, according to the latest figures from the Commerce Department.
Addressing Congress on July 18th, Fed Chairman Mr Alan Greenspan described the economy as still weak and deteriorating in some areas and was reluctant to be pinned down on when it would recover.
"If I had to make a forecast . . . toward the end of this year we will see things improving and clearly so next year," he said.