By Scott Lanman

Jan 30, Bloomberg


The Federal Reserve may lower interest rates for the second time in nine days and indicate a readiness to go further if the economy deteriorates.

The Federal Open Market Committee, ending a two-day meeting today, will probably follow the Jan. 22 emergency reduction with a half-point cut in its benchmark rate, according to 48 of 85 economists surveyed by Bloomberg News. Such a move would bring the rate to 3 percent.

Officials may cite ``appreciable'' risks to growth, a word used for the first time last week, avoiding what analysts said were the mistakes of 2007's statements. Through December, the FOMC referred to ``inflation risks,'' confusing some investors about its intentions. To avoid the impression of a blank check, Chairman Ben S. Bernanke will also seek language that notes the cumulative cuts since September, Fed watchers said.

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photo: Ben S. Bernanke, chairman of the U.S. Federal Reserve, speaks at a House Budget Committee hearing in Washington, Jan. 17, 2008. Photographer: Dennis Brack/Bloomberg News