03/28/2008 02:45 am ET Updated May 25, 2011

Wall Street Prepares For Rate Cut

Six weeks ago the Federal Reserve cut interest rates, a move that calmed panicked credit markets and sent stock markets soaring. Now investors faced with more troubling data are betting that the Fed will reduce rates again tomorrow.

Since the Fed's action, major financial institutions have had difficulty understanding the scope of their losses from the recent credit crunch, and economic data have been discouraging. The Fed's announcement is just one of several major pieces of economic news this week that will give the clearest sense yet of how badly the economy has been hurt.

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