Fed may be near end of rate-cut cycle: analysts

WASHINGTON (AFP) — Even as an economic storm intensifies, the US Federal Reserve is likely near the end of its interest rate-cutting cycle with policymakers awaiting the impact of a massive stimulus in the pipeline, analysts say.

The Federal Open Market Committee headed by chairman Ben Bernanke is widely expected to trim its federal funds rate by a quarter point to 2.0 percent at a two-day meeting concluding Wednesday, say economists.

But some Fed-watchers say this may be the last cut for some time.

Although the economy is believed to be barreling toward recession, a number of steps have been taken to mitigate the downturn.

The Fed has already slashed rates by three full percentage points since September, and the impact of those cuts likely will take several months to be felt in the economy.

Additionally, a 168-billion-dollar economic stimulus plan approved by Congress and enacted ...