Observers say the central bank's Open Market Committee will likely impose a cut of a quarter of a percentage point, lowering the overall rate to just two percent.

It would be the seventh time since last September the Federal Reserve has lowered the federal funds rate, which is the rate that banks and other depository institutions charge when they lend money to each other, usually on an overnight basis.

The U.S. Commerce Department will report on the country's gross domestic product just hours before the Fed finishes its meeting. Analysts expect the report to show the slowest growth in five years.

U.S. President George Bush told reporters Tuesday the U.S. economy is facing tough times because of rising energy and food prices and a sagging housing market. Mr. Bush blamed the Democratic-controlled Congress for blocking his proposals to deal with the problems.

Source: VOA News