The Fed meets in Washington later today amid wide expectations its chairman Mr Alan Greenspan will announce cuts in short-term interest rates for the fifth time this year.
Wall Street anticipates a reduction of half a per cent but will also be focusing on the wording of the statement announcing the anticipated reduction.
The Fed is expected to announce its decision at around 2.15 p.m. (8.15 p.m. Irish time).
Speculation has shifted from whether the Fed cuts the rate by a quarter or a half percentage point to the composition of its often obscure post-meeting statement.
With some signs the once-reeling US economy may be regaining its feet and with the Fed having already conducted its most aggressive easing campaign in recent memory, analysts see policy-makers possibly trying to give markets a hint the days of almost automatic cuts may be ending.
Mr Anthony Karydakis, senior financial economist with BancOne Capital Markets in Chicago said: "I think people are concerned the easing process is winding down."