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

Surprise Rate Cut Unlikely Despite Recession Fears

Despite the growing chorus on Wall Street predicting a recession this year, economists say the Federal Reserve is unlikely to cut interest rates before its regularly scheduled meeting later this month.

Even those economists who view the November spike in unemployment as an ominous sign say that a rare intra-meeting rate cut is neither necessary nor appropriate.

"There's a real bias against that, unless it is a real emergency," says Bank of Tokyo-Mitsubishi-UFJ's senior financial economist Christopher Rupkey, who says a recession is now a fait accompli.

"If they change policy it will spook the markets, saying things are so bad they can't wait, " adds Robert Brusca, chief economist at FAO Economics. "I don't get the sense that there is support for that kind of cut right now."

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